Invoice Financing APR Calculator
Invoice financing is a common financing option for businesses that get paid long after they deliver their goods or services. Here’s how it works: if you have an outstanding invoice, you can go to the invoice financing companies to get 80-85% of invoice amount in advance. When the client actually pays the invoice, you will get the full invoiced amount back minus a factoring fee. The factoring fee is usually 0.5% – 4% per month.
This fee structure is much different from a traditional bank or term loan. Plug your terms into the calculator below to find out the true cost and compare with alternative options.