Invoice Factoring Calculator: Advanced, Discount, Factoring Rates

Calculate Your Cash at the end of the factoring process

To help businesses get a clearer picture of how invoice factoring can improve their cash flow, we’ve developed an easy-to-use invoice factoring calculator. This tool allows you to estimate how much immediate cash you can access by selling your invoices to a factoring company, and it takes just minutes to use.

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Use 1st Commercial Credit's invoice factoring calculator to see how much cash you'll receive in advance, the amount due to you once the invoices have been paid, and your factoring fee:

Invoice Factoring Calculator

Invoice Amount ($) Factoring Rate (%) Advance Rate (%) Invoice Fees ($) (Optional) Optional Fees ($) (Optional)

Invoice Factoring Calculator Formula:

Cash Advance = Invoice Amount × Advance Rate

Factoring Fee = Invoice Amount × Discount Rate

Cash Available After Payment = Invoice Amount − Factoring Fee

Total Cash Received = Cash Advance + Cash Available After Payment

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How Does the Invoice Factoring Calculator Work?

Our Invoice Factoring Calculator is designed to help you quickly determine the potential cash you could unlock through invoice factoring. By entering a few simple details about your invoices, you can get an estimate of your cash advance, factoring fees, and the total cash received at the end of the factoring process.

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Enter Your Invoice Details: The first step is to input key details about the invoice. These details include:
- Invoice Amount: The total value of the invoice(s) you plan to factor.
- Advance Rate: The percentage of the invoice amount the factoring company will advance to you (usually 70-90%).
- Discount Rate: The factoring fee, which is typically a percentage of the invoice amount (e.g., 1-5%).
- Invoice Fees: Any additional fees that may apply to your factoring agreement (optional).
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Calculate Your Results: Once you input the invoice amount, advance rate, and discount rate, the calculator will generate:
- Cash Advance: This is the initial amount the factoring company will advance to you based on the advance rate. For example, if your invoice is $10,000 and the advance rate is 85%, your cash advance would be $8,500.
- Factoring Fee: This is the cost for using the factoring service. It is a percentage of the invoice amount. For instance, if the invoice amount is $10,000 and the discount rate is 5%, the factoring fee would be $500.
- Cash Available After Payment: This is the remaining amount after the factoring fee is deducted. It is the portion of the invoice that the factoring company holds until the customer pays the invoice. Once the payment is received, the remaining amount is paid out to you, minus any additional fees or charges.
- Total Cash Received by End of Factoring Process: This is the total amount you will receive once the factoring process is complete, which includes both the cash advance and the remaining balance after the invoice is paid.
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4 Benefits of Invoice Factoring for Your Business

Invoice factoring offers numerous advantages, especially for businesses that struggle with cash flow or have long payment cycles. Here are some key benefits:

Benefit #1

Instant Cash Flow: Instead of waiting for customers to pay, you can access cash immediately. This helps you cover day-to-day expenses and avoid financial strain.

Benefit #2

No Debt Incurred: Unlike loans or lines of credit, invoice factoring does not require you to take on additional debt. You are simply selling your invoices for immediate cash.

Benefit #3

Flexible Financing: Invoice factoring is highly flexible and can scale with your business. The more invoices you factor, the more cash you can access.

Benefit #4

Improved Focus on Business Growth: With invoice factoring, you don’t need to chase down late payments or deal with the stress of managing accounts receivable. This allows you to focus on growing your business instead of managing collections.

Ready to Start Factoring?

If you’ve calculated your invoice factoring costs and cash advances and you’re ready to start factoring, fill out our free quote form or give us a call today at +1 (800) 876-6071. Our representatives would be happy to discuss how altLINE can help improve your cash flow.