Invoice Factoring Fees Calculator
Estimate the cash advance, factoring fee, and net proceeds from an unpaid invoice.
This calculator helps B2B operators compare the cost of invoice factoring before requesting funding quotes.
- Uses a simple prorated fee model.
- Final quotes may include service fees, minimums, recourse terms, or credit checks.
Formula:Advance is invoice amount x advance rate. Estimated fee is invoice amount x fee rate x days outstanding / 30.
Last reviewed:2026-05-17
Sources: SBA invoice factoring overview
When to use this
Estimate the cost of factoring unpaid invoices.
What you get
A $25,000 invoice at 85% advance gives $21,250 upfront. At 3% per 30 days for 45 days, the estimated fee is $1,125.
Useful next step
Use the estimate to compare options, pressure-test pricing, or decide which fee model deserves a closer look.
Problems this helps with
- Cash flow gaps from slow invoices
- Confusing advance rates
- Need to compare lenders and factoring companies
Example estimate
A $25,000 invoice at 85% advance gives $21,250 upfront. At 3% per 30 days for 45 days, the estimated fee is $1,125.
Compare invoice funding options
Continue with a related tool or comparison that helps turn the estimate into a clearer decision.
Related fee tools
FAQ
What is an invoice factoring fee?
It is the cost charged by a factoring company to advance cash against unpaid invoices.
Is factoring a loan?
Factoring is usually structured as a sale or advance against receivables, not a traditional loan.
What makes factoring fees higher?
Longer payment terms, weaker debtor credit, smaller invoices, and nonstandard industries can increase cost.