The amount is
More options90% advance, 2% per 30 days, prorated
Fee accrual
Cash todayestimate
$36,000 today
$2,800 more when your customer pays.
Total cost $1,200, 3.0% of the invoice
Shown at a 90% advance and 2% per 30 days, prorated over 45 days. The fee rides on your customers' credit and how fast they pay.
Real terms come from your file, after underwriting.
Details: fee, reserve and total collected
- Fee
- $1,200
- Released when your customer pays
- $2,800
- Total collected
- $38,800
- Cost as a share of the invoice
- 3.0%
Estimate with the fee and timing you chose. The fee rides on your customers' credit and how fast they pay. Running numbers here never touches your credit.
FAQ
Common Questions
How does invoice factoring work?
You sell an unpaid business invoice to a factoring company. It advances most of the invoice today, typically 80% to 95%, and releases the rest less its fee when your customer pays.
How is the factoring fee calculated?
The fee is a percentage of the invoice for each 30 days it is open, typically about 1% to 5%. Prorated, a 45-day invoice at 2% costs 3%; charged per 30-day block, the same invoice pays two blocks, or 4%.
What is the reserve?
The part of the invoice not advanced up front. When your customer pays, the reserve comes back to you less the fee. If the fee ever ran past the reserve, the calculator says so.
Can I run my monthly invoice volume instead of one invoice?
Yes. Switch the amount to monthly invoice volume and the calculator shows what comes up front each month, the fee each month and what is released as your customers pay.
How fast does invoice factoring fund?
Setup typically takes 3 to 7 business days. After that, invoices typically fund within 24 hours.