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What Does That Factoring Quote Really Cost?

Every factoring calculator online is published by a factoring company. This one is published by a broker who gets paid the same no matter which factor you pick — so it has no reason to flatter anyone's pricing. Enter a quote below. Enter two and compare them.

Quote A

Type the numbers straight off the factor's proposal.
The headline rate on the quote
Portal, credit checks, statements…
Charged if fees fall short of this

Quote B (optional)

Comparing offers? Put the second one here.
Leave blank to skip Quote B

The true cost

The five places factoring quotes hide money

The headline rate is rarely where the cost lives. Before you sign anything, find these five items in the contract:

1. "Per 30 days" rates. A "1.5%" rate that recharges every 30 days is 3% on a 45-day payer — double the headline. The calculator above accounts for this; most quotes hope you won't.
2. Reserve holdbacks. A 90% advance means 10% of your money sits with the factor until the invoice clears — sometimes weeks after. Ask exactly when reserves release, and what they can be applied against.
3. Monthly minimums. A minimum volume or minimum fee clause means a slow month still costs full price. Startups with uneven freight get hurt worst.
4. Termination fees and auto-renewal. Many contracts renew for a full year unless cancelled in a narrow window, and charge months of average fees to exit early. Read the term clause before the rate clause.
5. Recourse terms. If a broker doesn't pay, who eats it? Non-recourse costs a little more and can be worth every basis point — but read what "non-recourse" actually covers. Often it's bankruptcy only.

Want a second set of eyes on the actual contract?

Send over the proposal or the contract and we'll tell you plainly what it costs and where the traps are — free. We're a commercial finance brokerage working across 50+ lenders, including factors that work with brand-new authorities and startup brokerages. The review itself is free; if we end up placing your financing, we charge a small fee at closing. And because clean books make everything easier — from factoring approvals to taxes — we also help new carriers set up a proper accounting system in Xero from day one.

Email the quote to Mike Call / text 914.419.3059 Start an A/R application

Estimates are for comparison only and assume the figures you enter; actual contract terms govern. Not every business qualifies for every program. NTIB Finance & Consulting is a commercial finance brokerage, not a lender.