Calculator
Estimate only. Actual advance rates and fees depend on your agreement with New Century Financial.
Invoice Factoring Calculator
When corporate clients demand 30-, 60-, or 90-day payment terms, your cash flow stalls, making it difficult to meet payroll, purchase materials, or take on new contracts. Our invoice factoring calculator gives you a quick, transparent estimate of the immediate working capital you can unlock from your accounts receivable. Instead of waiting months for client payments, you can convert those outstanding invoices into cash in as little as 24 hours without taking on debt or adding loan liabilities to your balance sheet.
Calculate Your Cash Advance & Factoring Costs
- Invoice Amount ($): Enter the total dollar value of the invoice(s) you plan to factor.
- Advance Rate (%): Enter your expected advance percentage (typically up to 90% with New Century Financial).
- Factoring Rate (%): Enter the agreed discount fee percentage.
How the Invoice Financing Calculator Formulas Work
How the Invoice Financing Calculator Formulas Work
Understanding your cash flow numbers should be straightforward. Here is an example of the math used by our invoice financing calculator to project your capital payout:
Box 1
Cash Advance Invoice Amount X Advance Rate
Example: $10,000 X 90% = $9,000 provided upfront on Day 1.
Box 2
Factoring Fee Invoice Amount X Factoring Rate
Example: $10,000 X 2% = $200 total fee retained for funding services.
Box 3
Reserve Balance Invoice Amount - Cash Advance
Example: $1,000
Box 4
Final Rebate Layout Reserve Balance - Factoring Fee
Example: $1,000 - $200 = $800 returned to you once the customer settles the invoice.
Box 5
Total Cash Received Cash Advance + Final Rebate Payout = $9,800 total cash.
Key Factoring Terms Explained
Key Factoring Terms Explained
| Term | What It Means for Your Business |
|---|---|
| Accounts Receivable | The outstanding, unpaid invoices owed to you by customers for completed work or delivered products. |
| Advance Rate | The percentage of the invoice total that New Century Financial pays you immediately upfront (up to 90%). |
| Factoring Rate | The small discount percentage retained as the service fee for advancing your capital early. |
| Reserve Amount | The remaining percentage held temporarily until your client pays the invoice, then refunded to you minus the factoring fee. |
Why Businesses Choose New Century Financial
Calculators give you a baseline, but custom terms give you competitive leverage. Unlike rigid financial institutions, New Century Financial designs factoring programs tailored directly to your operational cash cycles.
- No Long-Term Contracts: You maintain total flexibility over your capital structure.
- Selective Factoring: Pick and choose exactly which client invoices to fund—no forced volume minimums.
- Zero Hidden Fees: Clear pricing models mean no application fees, surprise monthly minimums, or maintenance charges.
- Fast Approvals & Same-Day Funding: Move from application to initial funding within 24 hours.
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Request Your Custom Factoring Quote Today
Request Your Custom Factoring Quote Today
While an invoice factoring calculator provides a helpful estimate, your business deserves a custom rate built around your client volume and transaction sizes. Stop letting unpaid receivables hold your operations back. Contact New Century Financial today for a free, zero-obligation custom factoring quote, and start converting your open invoices into working capital within 24 hours.
FAQs
Frequently Asked Questions (FAQs)
What is invoice factoring and how does it work?
Invoice factoring is a straightforward financial service where you sell your unpaid invoices to New Century Financial at a small discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for client payments, we advance you up to 90% of the invoice value within 24 hours. Once your customer settles the invoice directly with us, we release the remaining reserve balance to you, minus our agreed-upon factoring fee.
Is invoice factoring considered a business loan?
No, invoice factoring is not a loan. It is an outright sale of an existing asset: your accounts receivable. Because it is not a loan, you take on zero debt, make no monthly installment payments, and preserve a clean balance sheet for future credit needs.
Do I have to factor all of my customer invoices?
Not with New Century Financial. Unlike traditional factors that enforce rigid "whole-ledger" mandates or monthly volume minimums, we offer total flexibility. You pick and choose exactly which specific invoices or customers you want to factor, allowing you to optimize your cash flow strictly on your terms.
Can my business qualify if I have bad credit or a brand-new setup?
Yes! Because factoring relies on your clients' commitment to pay, our primary focus is on the creditworthiness and payment track record of your customers, not your personal or business FICO score. We routinely help early-stage startups, rapidly growing companies, and businesses with imperfect credit secure the capital they need to thrive.
How fast can I access my money after signing up?
You can complete our online application in minutes to receive instant pre-approval, followed by a formal funding proposal within 24 hours. Once your facility is live, subsequent invoice submissions are typically funded the same day.
Are there hidden setup charges, application fees, or long-term lock-ins?
No. We pride ourselves on complete fee transparency. There are zero application fees, no setup costs, no hidden maintenance charges, and no mandatory long-term contracts that lock you down. Your only cost is the clear factor discount rate applied to the invoices you choose to accelerate.
How will invoice factoring affect my client relationships?
Factoring is a standard, widely accepted commercial business practice. When you join, your customers simply receive a standard Notice of Assignment directing invoice payments to our secure account. Our account management team operates as a professional, courteous extension of your back office, maintaining positive, respectful relationships with your corporate clients at all times.