Fee structure comparison
Compare a flat factoring fee against a daily rate fee for the same invoice and holding period.
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.
- Flat fee rate must be between 0 and 25 percent.
- Daily rate must be between 0 and 5 percent per day.
- Days outstanding must be between 1 and 365.
Example calculation
- $10,000 invoice
- 3.00% flat fee: $300
- 0.10% daily rate x 40 days: $400
- Break-even day: 30
What this estimate does not include
- Minimum monthly fees or per-invoice transaction fees.
- Tier resets when the customer pays after a stated period.
- Wire, ACH, or platform fees.
- Reserve adjustments or chargeback costs.
Questions to ask a factoring company
- Is the quoted fee a flat fee or a daily rate?
- Is there a minimum fee if the invoice pays early?
- Does the rate tier up after 30 or 60 days?
- What is the fee base: invoice face value, advance amount, or something else?
FAQ
When does a daily rate cost more than a flat fee?
When the invoice stays outstanding longer than the break-even day shown in the result.
Does this account for minimum fees or tiers?
No. Actual agreements may include minimum charges, tier resets, or blended structures not captured here.
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.