Advance rate calculator
Estimate upfront cash from invoice amount and advance rate.
Estimate only. Estimate only. This calculator runs locally in the browser, does not collect inputs, does not send requests, and does not represent an offered or promised rate.
Result will appear here.
Enter values and calculate. No inputs are transmitted.
Input limits
- Invoice amount must be greater than zero.
- Advance rate must be between 0 and 100 percent.
Example calculation
- $12,000 invoice
- 85.00% advance rate
- Estimated advance: $10,200; estimated reserve before fees: $1,800
What this estimate does not include
- Invoices that are ineligible because of age, dispute, debtor credit, or documentation.
- Reserve deductions for fees, short pays, or offsets.
- Customer concentration limits or funding caps.
- Fuel advance deductions or prior overadvance balances.
Questions to ask a factoring company
- Is the advance rate the same for every debtor?
- Can the advance rate change after customer credit review?
- What reserve percentage is held back?
- When is the reserve released?
FAQ
Is a higher advance always better?
No. Reserve timing, fees, eligibility, and chargeback rights also matter.
Can an advance rate change?
Yes. Terms vary by provider, invoice, customer credit, and contract.
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.