To use this calculator, enter the loan amount, APR, term length, and any applicable fees. Adjust the advance rate and discount rate to see how they affect your financing costs. The calculator will provide a detailed breakdown of your repayment amount, total loan cost, and other key metrics.
The repayment amount is calculated as the sum of the loan amount and the total loan cost, which includes interest and origination fees. The advance amount is determined by multiplying the loan amount by the advance rate. The factoring fee is calculated using the discount rate and days outstanding. The net funds received is the advance amount minus the factoring fee.
Suppose you have an invoice of $10,000 with an APR of 5%, a term length of 12 months, and an advance rate of 80%. The calculator will show you the repayment amount, total loan cost, and other relevant figures.
Invoice financing can be a valuable tool for managing cash flow, but it's important to consider the cost implications. Be aware of the impact of high discount rates and long days outstanding on your overall financing costs. For more detailed financial planning, consider using our Loan Calculator or Interest Calculator.