Invoice Financing Calculator
Calculate the true cost of factoring an invoice
Invoice financing and factoring are priced from advance rates, weekly discount fees, reserves, and time outstanding. This calculator shows upfront cash, total fees, final reserve release, and APR equivalent.
- ✓Calculates initial advance and held reserve
- ✓Models weekly discount fees and other fees
- ✓Shows net proceeds and APR equivalent
| Step | Amount | Note |
|---|---|---|
| Invoice face value | $100,000 | Customer payment amount |
| Initial advance | $85,000 | 85% paid upfront |
| Held reserve | $15,000 | Released after customer pays, less fees |
| Financing fee | -$9,500 | 1.5% weekly for 6 weeks plus fees |
| Net received | $90,500 | Advance plus final reserve release |
Frequently Asked Questions
What is the advance rate?
The advance rate is the percentage of invoice face value paid upfront. The remaining reserve is released after the customer pays, less fees.
Why does time outstanding matter?
Factoring fees often accrue weekly or monthly while the invoice remains unpaid. Slower-paying customers increase the cost.
Is factoring debt?
It depends on the structure. Many factoring products are purchases of receivables, but they still affect cash flow and lender perception.
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This tool is for educational purposes only. Results do not constitute a loan offer, pre-qualification, or guarantee of financing. Consult a licensed financial professional for advice specific to your situation.