Invoice Factoring Calculator

Find out how much working capital you could unlock immediately by factoring invoices the same day they are generated, instead of waiting weeks — or months — for customer payments.

Speed up cash flow and grow your business faster by factoring invoices instead of waiting 30, 60, 90 days or longer for customers to pay.

Factoring enables you to expedite capital tied up in customer invoices – without waiting weeks (or months) for your customers to pay.

An invoice factoring calculator – or opportunity cost calculator – shows you how much working capital could be immediately available to your company in the form of unpaid customer invoices.

Get a free, no-obligation quote for invoice factoring:

  • Average monthly sales or amount of invoice to factor

What is an Invoice Factoring Calculator – and How Does the Factoring Process Work?

What is an invoice factoring calculator?

An invoice factoring calculator (also known as an opportunity cost calculator) reveals the amount of working capital currently tied up in an organization’s accounts receivable invoices that could be available to the organization immediately if they factored the invoices instead of waiting on customer payments. The invoice factoring calculator (or opportunity cost calculator) shows four main figures:

  • Average invoice amount – this is the amount of a single, typical customer invoice
  • The advance amount – based on the advance rate (e.g., 90% advance rate) – the amount advanced to the client when they factor an invoice
  • The factoring fee – based on the factoring rate (e.g., 5% factoring fee) – the cost of financing
  • The reserve – the difference between the invoice amount less the advance and factoring fee – any amount that remains is held in reserve against customer payment before being returned to the factoring client

It’s commonly referred to as an opportunity cost calculator. Any opportunity that an organization cannot take advantage of while waiting on this working capital are the opportunities “lost” to the business. These types of opportunities lost due to slow cash flow could come in many forms:

  • Inability to take on new business, serve large customers or fill big orders
  • Inability to take advantage of vendor cash or quick-pay discounts
  • Inadequate cash flow for payroll or operating expenses

In essence, anything an organization could do if it had the money tied up in customer invoices on hand, instead of on the books, are the opportunity cost to the organization of not factoring invoices.

How does the invoice factoring process work?

An invoice factoring calculator shows the amount of working capital an organization could expedite in order to more easily meet operating expenses and grow.

Businesses that want to expedite payment of accounts receivable invoices can factor them (or sell them) to a receivables factoring company for a small fee (called a factoring fee).

Invoices factored may be funded as soon as 0-2 business days – up to 90% of the face value of the invoice, with the remainder placed in ‘reserve.’  For instance, let’s say that you are billing a customer in the amount of $12,000 but you want to access the funds without waiting weeks – or months – for your customer to pay.

Assuming a factoring fee of 5%, and an advance rate of 90%, here’s how it would work:

Day 1 – Generate $12,000 client invoice and factor it
 – 0-2 Business Days Your company receives 90% advance of $10,800 by wire transfer or ACH
The factoring company earns 5% factoring fee of $600
Day 30+ Your company receives the $600 reserve amount after the invoice is paid

What are the benefits of invoice factoring?

Instead of waiting on customer payments, you can factor a customer invoice on the same day it’s generated and receive and advance of up to 90 percent of the face amount of the invoice right away.

Factoring receivables enables you to focus on growing your business rather than chasing invoices or performing collections. You can gain immediate access to working capital by speeding up cash flow, so that you can reinvest in your company much more quickly.

Factoring receivables could also be the key to positioning your business to be able to take advantage of emerging opportunities. Organizations that factor invoices expedite cash flow, which means they have more flexibility to:

  • meet operational expenses
  • take advantage of supplier or vendor fast pay (or cash) discounts
  • extend more generous payment terms to their customers as a competitive advantage
  • reinvest working capital in their business more quickly in order to expand
  • serve larger accounts or take on new customers

Additionally, there are different types of factoring options available to you with Corsa Finance:

When you factor invoices with a non-recourse factoring company, you may be able to completely eliminate financial risk from bad debt.

Factoring with full recourse may provide you with the best rate.

Non-notification factoring enables you to ensure a seamless brand experience for your customers with white-labeled invoice factoring service.

Why choose Corsa Finance for invoice factoring?

Don’t miss any more of the growth opportunities invoice factoring provides. Now that you know the opportunity cost of slow paying customers and low cash flow, apply online or request a free, no-obligation factoring quote. When you work with us, you can expect great options like:

  • Competitive fees and advances
  • Spot factoring
  • Microfactoring
  • No long term contracts
  • No monthly minimums
  • Fast approvals and funding
  • No cost to apply and no hidden fees

We want to earn your referrals and continued business. Working with us doesn’t cost you more, but it could ensure your business has financial tools in place that can help it grow to the next level.

  • Apply

We’ll propose an invoice factoring program suited to your business goals and preferences.

  • Factor Invoices

Go from approval to your first funding in as little as 24-48 hours — or even faster.

  • Speed Up Cash Flow:

Get advances in 0-2 business days on factored invoices to expedite cash flow and grow your business faster.