Result
Advance amount
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Advance amount = invoice amount × advance percentage ÷ 100. Remainder = invoice amount − advance amount — the factoring company transfers this part only after the buyer actually pays the invoice, net of the factoring fee.
A factoring company almost never advances 100% of the invoice amount — part is held back as a reserve against returns, quality disputes, or partial payment by the buyer, and the remainder (net of the fee) is paid out once the deal closes.
The advance percentage isn't a universal figure — it depends on the industry, the paying buyer's reputation, and the terms of a specific factoring agreement, which is why it's an editable field here, not a fixed standard.