Invoice Factoring Rate Calculator
Use our interactive terminal to get an immediate estimate of your advance amount and monthly factoring fees.
How Factoring Costs Are Calculated
Invoice factoring costs are not expressed as an APR (Annual Percentage Rate) like traditional loans. Instead, they are calculated using two main factors: the advance rate and the factoring fee (or discount rate).
The Advance Rate
This is the percentage of the invoice value that the factoring company provides to you upfront. Typical advance rates range from 80% to 95%, depending on your industry, the creditworthiness of your customers, and your monthly factoring volume.
The Factoring Fee
Also known as the discount rate, this is the fee the factoring company charges for their service. It is typically a small percentage (usually 1% to 5%) charged against the total invoice amount for a specific time period (e.g., 30 days).
Note: The calculator provides estimates based on industry averages. Your actual rate will depend on the financial strength of your customers, not your personal credit score.