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Invoice factoring cost estimator

See the cash up front, the reserve, and the financing cost in dollars.

Industry

Industry sets the advance percentage and factoring fee bands, because the two real drivers, your customer credit and how fast the invoice pays, differ by industry. Freight and staffing invoices are clean and fast, so they advance highest and cost least; construction and medical sit lower. The bands never blend across industries.

Recourse

Recourse is the cheaper default: you buy back an invoice your customer never pays. Non-recourse costs more and covers customer insolvency only, not disputes or short-pays.

A single invoice of this size, for a clean illustration. Factoring is sold per invoice or per batch, and the math scales with the face amount. Not a suggested amount and not OpenQuote pricing.

Reserve is 7%, the face minus the advance, released to you net of the fee once your customer pays.

Invoice amount$25,000
Advance paid up front$23,250
Factoring fee$700
Reserve released after your customer pays$1,050
Total you receive$24,300
Cost of financing$700
How this is estimatedTrue sale
APR-equivalent (for comparison only, not the native quote)

Over 45.8 days of collection time the 2.8% factoring fee annualizes to an APR-equivalent near 22.3% (the fee times 365 divided by the days to payment). Factoring is quoted as an advance plus a fee, so this figure is only for lining a factoring deal up against a loan APR, and it is never the native quote.

Estimate only. A partner's written offer controls.

Estimate details and sources

Actual advances, fees, and pricing are set by independent funding partners and depend on your customer credit, the invoice, your volume, and your industry. Your offer will differ. The bands shown are industry market data from published sources as of Jul 2026, not OpenQuote pricing. Partner fees, if any, are itemized on the offer itself: ask for all of them in writing.

  1. SFNet 2024 Annual Factoring Survey (Secured Finance Network): blended, all-industry realized advance about 84.3% with days to payment about 45.8 days, on a base skewed to apparel and textiles. It anchors the advance axis and the collection time, but not any one industry center.
  2. Triumph Financial (TFIN) SEC 8-K shareholder letters and 10-K: a public freight factor discloses a realized discount fee near 1.3% on a large-fleet book and a portfolio yield near 14% to 15%, on a book that is 97% transportation. This is the one hard anchor on the fee axis, and only for freight.
  3. CA DFPI SB 1235 and NY DFS 23 NYCRR 600: two states require a disclosed APR-equivalent on factoring, computed from the advance, the fee, and the days to payment, and the New York text states plainly that the disclosed figure is not the native factoring fee. This is the method behind the comparison overlay.
  4. Factor and aggregator pricing pages (eCapital, Crestmont Capital, Apex Capital, altLINE, FundThrough, Commercial Capital, 1st Commercial Credit): these bracket each industry advance and fee and agree on the ranking, but lean to advertised floors, so the non-freight fee bands and the by-industry advance centers are advertised-derived, not survey-measured, and the tool labels them directional.

Educational market data with full citations on file in substantiation/factoring-pricing-2026-07.md. Not OpenQuote partner pricing, and not a quote.

Factoring is quoted as an advance plus a fee, not an APR, and the reserve comes back to you net of the fee. See the full explainer

Invoice factoring is a sale of receivables. See the cash advanced now, the reserve held back, and the fee deducted when your customer pays. Nothing you enter here is collected.

How to read this estimate

The advance percentage determines the cash received up front. The reserve is released after payment, less the factoring fee. The APR-equivalent is only a comparison overlay, not the native quote.

The tool does not model every ancillary fee, recourse term, or fee step-up on a slow invoice. Industry ranges are general market data, not an OpenQuote quote.

This educational estimate cannot predict approval or partner pricing. Confirm every final number and fee in the partner's written agreement.

Learn how invoice factoring works