Skip to main content
OpenQuote

Invoice factoring cost estimator

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

See what is paid now, what is held back, and what the invoice costs.

Industry
Recourse
File strength

Shows where similar files tend to price. In factoring, a strong file mostly means your customers' payment history and clean, unpaid invoices, more than your own credit. Stronger files price lower in the range. Industry pattern, not a quote.

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.

How this estimate works

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.

Factoring is a true sale of an invoice, not a loan or native APR product. The advance is the invoice amount times 93%. The fee is the invoice amount times the 2.8% factoring fee. The 7% reserve, less the factoring fee, paid to you once your customer pays the invoice. Total proceeds are the advance plus released reserve, which equals the invoice amount less the fee. Figures are approximate; the signed agreement governs.

The APR-equivalent annualizes the fee over the customer's payment time. The SFNet survey puts blended collection time near 45.8 days; faster payment annualizes higher and slower payment lower.

The market range for a freight factoring deal runs 90% to 97% advance, centered near 93% (public market data, Jul 2026). Not OpenQuote pricing. The SFNet 2024 all-industry advance is 84.3%, which sits below the freight band. The market range for a freight factoring deal runs 1% to 3.5% per 30 days, centered near 2.8% (public market data, Jul 2026). Not OpenQuote pricing. The freight fee band is anchored to public-factor SEC filings, the one hard-anchored segment; the advance percentage is advertised-derived. Files like this typically land between 2.3% and 3.3% per 30 days in this industry (industry pattern, not a quote). The 2.8% factoring fee sits in the typical cost band for a freight factoring deal. The freight factoring fee band is anchored to public-factor SEC filings, the one hard-anchored segment; the advance percentage is advertised-derived.

  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