Invoice Financing Calculator Guide
Invoice Financing
Advances cash against outstanding invoices (factoring or discounting). Costs depend on advance rate, fees, and days outstanding.
Key Inputs
- Invoice amount and advance rate
- Discount rate or fee
- Days to collection
Example
$50,000 invoice, 85% advance → $42,500. 3% fee for 30 days → cost $1,275; effective APR depends on turnover.
FAQs
Recourse?
Recourse factoring requires repurchase on nonpayment; nonrecourse shifts credit risk.
Cash flow?
Improves liquidity while awaiting payment.