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Invoice Factoring Calculator

Software for Working Capital Loans

Interactive Software calculates
Initial Availability
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Fees
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based on Advance Rate and A/R Aging [Payment Periods].

Users are able to estimate for different scenarios.


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Partner Resources

Charter Capital
Specialized Financing Offered :
Invoice Factoring

Company Bio

At Charter Capital, we are committed to helping small businesses realize their full growth potential by enhancing their cash flow. Privately owned and headquartered in Houston, Texas, we are a full-service invoice factoring company. Our principals ...    Read More

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Benefits of Factoring with Charter Capital

Competitive Rates: Charter Capital’s low rates keep more money in your pockets.
Up to 100% Advances: Whereas other companies may only advance you 60-80% of an invoice’s value, Charter Capital can deliver up to 100%.
No Sign-Up Fees: There’s no cost to apply or get started with invoice factoring.
Transparent Pricing: You’ll always know exactly what to expect.
Fast Approval: You’ll receive your factoring quote and terms usually the same day you apply. Free Collections Services: They’ll collect for you so you can focus on your business and stop chasing invoices.
Free Credit Reports: Learn about the creditworthiness of your clients and make informed decisions about the work you take on.
White-Glove Service: Your dedicated account manager will be standing by to help you whenever you need it.

What is Factoring

Factoring is an alternative funding solution that turns your unpaid B2B invoices into working capital. Instead of waiting 30, 60, 90, or more days for your clients to pay, you simply submit your unpaid invoice to the factoring company. The factoring company advances you a portion of the invoice’s value right away.

You’re free to spend the funds in whatever way you feel benefits your business most. Apply it to payroll, cover business overhead, or invest in your company’s growth. No matter what you choose, the factoring company will be the one waiting on the payment while you move forward. Once your client pays the invoice, the factoring company sends you any remaining funds, minus a nominal factoring fee.


What Are the Benefits of Factoring?

Fast Funding: You can get cash on the same day you submit your invoice.
No Long-Term Contracts: You choose which invoices you want to factor and when to factor them.
Debt-Free Funding: Unlike loans with principal and interest to pay back, factoring does not create debt because your clients are the ones paying the invoices.
Easy Qualification: There’s no minimum credit score, so it’s easy to get approved.

Scale Funding
Specialized Financing Offered :
Invoice Factoring

Company Bio

Since 1994, Scale-Funding Business Capital has provided best-in-class factoring solutions to thousands of small to midsize companies across the United States. These companies choose us because they need working capital and value the knowledge and...    Read More

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Benefits of Factoring with Scale-Funding



Expertise: We specialize in funding companies, with 29 years in business and serving customers across the US.

Dedicated Advisor: Get to work with a business advisor to help you with your lending needs.

Flexibility: Our funding ranges from $30K to $8M per month per customer, supporting businesses from startups to established companies.

Client-Focused: While we prefer service companies, we're open to diverse clientele. (Please note, we don’t handle progress/milestone billing construction).

Credit Accommodations: Our services are available to clients with imperfect personal credit, provided there’s no financial fraud on their records.

Competitive Advances: We offer up to 90% advances on standard deals and up to 97% for over-the-road trucking clients.

Quick & Reliable Funding: Our initial funding process typically takes just five business days, and subsequent funds are sent the same day we receive the invoices.

Flexible Contracts: We offer month-to-month agreements, ensuring that you never feel trapped in a long-term contract.

Invoice Financing and Invoice Factoring

Selling your Invoices

Invoice Factoring

An Alternative to Traditional Bank Loans

Invoice factoring is similar to invoice financing, but it operates on a slightly different model. Instead of borrowing against the value of the outstanding invoices, business owners sell their invoices to a factoring company at a discounted rate, in exchange for immediate cash. The factoring company then takes over the responsibility of collecting payments from the invoice recipients. Invoice factoring is an alternative to traditional bank loans because it offers faster access to cash than a typical loan, without requiring collateral or having to undergo a lengthy lending process.

Borrowing against Invoices

Invoice Financing

Invoice Financing: What It Is and How It Works Invoice financing is a funding solution in which businesses borrow against unpaid invoices to gain access to the cash they need. Essentially, invoice financing lets you convert your unpaid invoices into cash, without having to wait for the invoices to be paid. The basic process works like this: a lender or alternative financing provider (like a bank or online lender) evaluates your business’s unpaid invoices and offers you a loan based on the value of those invoices. You receive a percentage of the total value of the outstanding invoices upfront and repay the loan (plus interest) over time.

Frequently Asked Questions

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What is Invoice Factoring
Invoice factoring is a financial solution that offers businesses access to working capital without the need for traditional loans. By selling outstanding invoices to a third-party at a discounted rate, business owners can gain quick access to cash flow. This is especially useful for businesses with long payment cycles, as it provides an alternative source of funds for cash flow management.

In basic terms, invoice factoring works like this: A business owner sells their unpaid invoices (also known as accounts receivable) to a third-party factor at a discounted rate. The factor will then provide the business with an advance payment on the invoices – typically around 70-90% of the total amount – while they wait for payment from their customers. Once the customer pays their invoice in full, the factor will return the remaining 10-30% minus a fee.

Invoice financing and factoring can be an attractive financing solution for businesses that need quick access to cash flow. Whether you’re looking to expand your business, pay bills, or simply bridge a gap in cash flow, these financing options can help you achieve your goals. However, it’s important to carefully consider the costs and benefits of each option before making a decision.

Ultimately, the best financing option for your business depends on a wide range of factors,

- Size and structure of your business

- Your cash flow cycle

- Your financing needs.

It’s important to consider all your options, including traditional bank loans and alternative lenders. Also working with a financial advisor or a lending professional, would help you determine the best financing option for your business.
What are the advantages of Invoice Factoring / Invoice Financing
There are many advantages that come with using invoice factoring for your business. Firstly, since it doesn’t involve taking out any kind of loan or line of credit, you won’t have to worry about paying interest or additional fees down the line. This makes it an attractive option for businesses that want access to working capital without taking on additional debt.

Secondly, Invoice financing and factoring also helps businesses manage their cash flow more efficiently and ensures that money is available when it’s needed most. By providing an advance payment on unpaid invoices, businesses can avoid costly late fees and penalties due to delayed payments – and ultimately improve relationships with customers by keeping them up to date on payments.

Compared to traditional bank lending that requires multiple business and personal guarantees along with long wait time for approval and funding, invoice factoring can be a viable option that beats these additional requirements to access working capital. For certain requests, banks also require that the company maintain and manage certain covenants.

In short, invoice factoring is a great way for businesses to free up cash flow while avoiding traditional loan products. Not only does it help manage cash flow more efficiently but it also provides access to immediate working capital when needed most, with lesser restrictions and covenants allowing businesses to focus on growing rather than worrying about unpaid invoices and delayed payments from customers. So if you’re looking for ways to free up resources and expand your business capabilities without taking on additional debt, consider exploring lenders that meet your criteria.
Downsides of Invoice Financing and Factoring
Like any financial product, there are downsides to invoice financing and factoring that should be considered before making a decision.

One of the biggest downsides is cost – because these financing options are considered high-risk, they generally come with higher interest rates and fees.

Additionally, some business owners may be hesitant to relinquish control over their invoices to a factoring company.

Finally, businesses with healthier cash flows may not benefit as much from invoice financing or factoring compared to those with larger unpaid invoices.
What is Advance Rate
Advance Rate usually range from 70-90%. This rate determines your immediate cash availability.
What are Accounts Receivables
Accounts Receivables is money owed to a company by its customers for goods and services that have been delivered or consumed but not yet been paid for.
Accounts Receivables (A/Rs) is considered an assets on a company's balance sheet as it represents money that will be received in the future.
A/Rs are classified as current assets as they are expected to be paid in full within the year.

Accounts Receivables can be used as collateral for a lot of various lending instruments -

Invoice Financing

Receivables Financing

Working Capital

Bank Revolving Lines of Credit ...
What is an Accounts Receivables Aging Report (A/R Aging)
Accounts receivable aging is the process of categorizing accounts receivable according to how old they are.

The goal of Accounts Receivable aging is to help businesses keep track of their money and make sure they are getting paid on time. Accounts Receivable aging is typically done on a monthly basis.

Accounts Receivables aging usually fall into one of three categories:

-1. Current: Accounts that are due within the next month (30/60/90 days)
-2. Past due: Accounts that are overdue but still within the terms of the original agreement
-3. Collection: Accounts that are so overdue that the company has begun collections proceedings
What is Remaining Balance
Amount left over which is paid back to the company after accouting for fees.
How are the Fees calculated
The fees associated with invoice factoring vary depending on several factors, such as the size of your business, the value of your invoices, and the length of time it takes for customers to pay their bills.

Generally speaking, most factors charge a flat fee plus an additional fee based on either a percentage of the invoice’s face value or its net difference after payment has been received from your customer.

Factors may also charge additional fees for some services such as credit checks and collections management services. It's important to read all contracts carefully so that you understand exactly what fees are being charged before agreeing to any terms.
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