B2B Factoring Cost Calculator
Day-of-funding advance, total fee, reserve release, and effective APR, across 8 industry presets. Pick your vertical, run your invoice, see the all-in cost before signing a factor agreement.
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About these figures
Rate, spread, leverage and term levels shown here are indicative. They reflect general conditions across our lender network as of August 1, 2026 and describe what the market has recently supported, not an outcome available to any specific borrower.
Actual pricing, leverage and terms are determined by the lender through underwriting, once full transaction materials have been reviewed. Nothing shown here is a quote, a commitment, an offer of credit or a guarantee.
PeerSense is a commercial lending advisory. We do not lend, we do not fund and we do not set pricing. Every credit decision belongs to the lender.
Market conditions move. Figures may change without notice, and a level that cleared last quarter may not clear today. What these terms mean.
Indicative cost only. Final pricing depends on obligor mix, monthly volume, contract length, and recourse election.
Should You Graduate from Factoring to an ABL Line?
Factoring is priced per invoice; an asset-based revolving line is priced as an annual rate on your drawn balance. Per dollar, an ABL line is far cheaper, but it requires roughly $3M+ in average receivables and clean reporting to qualify. Enter your annual factored volume to see the all-in cost of each and what graduating would save.
Indicative. ABL eligibility depends on customer concentration, financial-reporting maturity, and AR quality, not volume alone. PeerSense maps companies along the factoring → ABL → bank-line curve and places each stage with the lenders in its network.
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Typical Factoring Specs by Industry
| Industry | Advance Rate | Fee / 30 days | Typical Aging |
|---|---|---|---|
| Construction & Subcontractor | 75% | 2.50% | 60 days |
| Staffing Agency | 90% | 1.75% | 40 days |
| Trucking & Freight Broker | 93% | 2.50% | 30 days |
| Oilfield Services | 84% | 2.50% | 80 days |
| Manufacturing | 80% | 1.75% | 55 days |
| Healthcare Receivables | 67% | 2.50% | 90 days |
| Government Contractor | 85% | 1.75% | 45 days |
| Distribution & Wholesale | 84% | 1.75% | 42 days |
May 2026 typical specs. Actual position in band depends on obligor credit mix, monthly volume committed, contract length, and recourse vs. non-recourse election. PeerSense pre-screens UCC-1 senior filings + IRS lien status + obligor concentration before lender submission.
How Factoring Cost Compounds
Factoring fees are charged per 30 days outstanding, not per invoice. A 2.5% per 30-day fee on a 60-day invoice = 5.0% face cost. The same 2.5% fee on a 30-day invoice = 2.5% face cost. AR aging is the biggest lever on factoring cost, pushing obligors to pay faster directly reduces the fee paid.
Industries with naturally long aging cycles (oilfield 60–105 days, healthcare 60–120 days) carry materially higher factoring cost than industries with short cycles (trucking 20–45 days, staffing 30–55 days). Worth modeling cost differently for each obligor: a Fortune 500 obligor that pays in 35 days costs less than a small private obligor that pays in 75 days, even at the same 2.0% per 30 days fee.
When to Graduate from Factoring to ABL
Above $5–10M average AR balance with diversified obligor mix and clean monthly reporting, ABL revolving credit lines typically price 200–600 bps tighter than transactional factoring. The graduation curve compounds, on $10M of average AR, a 400 bps reduction is $400K per year in interest savings. Compounded across 5+ years, it's a material P&L line.
PeerSense routes companies between factoring → ABL → bank LOC based on revenue trajectory, AR composition, customer concentration, and financial reporting maturity. We don't push companies into the cheapest product if they don't qualify yet, we route to the right step in the curve and build the path to the next graduation.
Ready to evaluate the right working capital structure for your AR?
PeerSense pre-screens UCC-1 senior filings, IRS lien status, MSA assignment clauses, and obligor concentration before any lender submission. Pre-cleared files close 7–14 days faster than raw inquiries.
Read the B2B Factoring StrategyInvoice Factoring & AR Financing Hub