TOOLS

Factoring Finance ^Calculator

A Factoring Finance Calculator helps businesses quickly figure out how much money they can get by selling their unpaid invoices to a lender, so they can get cash faster instead of waiting for customers to pay. It's a handy tool to understand your cash flow options easily. Give it a try to see how it can help your business manage money better!

Apply for business financing up to £500,000

‍

Quick and easy application process
Loan disbursed within 24 hours
No additional charges for early repayment

We Like To Keep Things Simple

Match with

150+

Lenders

Loans from

£1000
to
£500K

zero hidden fees

What are the ^benefits of a Factoring Finance Calculator?

A Factoring Finance Calculator is a valuable tool for businesses that utilize factoring services to manage their cash flow effectively. By inputting various financial parameters, users can quickly calculate the potential funds available through factoring, allowing for better financial planning and decision-making. This calculator simplifies the complex calculations involved in factoring invoices and helps businesses make informed choices based on immediate cash needs.

Improves cash flow

Quick access to funds

Simplifies financial management

Different types of unsecured business loans

Recourse Factoring

The business is liable if the customer doesn't pay the invoice.

Recourse Factoring

In recourse factoring, if the debtor fails to pay the invoice, the business must buy it back or replace the funds. This method is usually cheaper but involves more risk for the business.

Non-Recourse Factoring

The factor assumes the risk of bad debts if the customer fails to pay.

Non-Recourse Factoring

Non-recourse factoring protects the business from bad debt losses, as the factor absorbs the risk of non-payment due to customer insolvency, though this service typically costs more.

Invoice Discounting

A business borrows against unpaid invoices but retains responsibility for collections.

Invoice Discounting

Invoice discounting allows businesses to access cash tied up in unpaid invoices while maintaining control over their sales ledger and customer relationships. The business collects payments directly.

What are the types of factoring finance?

How Factoring Finance Works

Factoring finance is when a business sells its unpaid invoices to a third party, called a factor. In return, the business receives immediate cash, usually a large portion of the invoice value, instead of waiting for customers to pay.

Benefits of Factoring

Factoring provides businesses with quick access to cash, improves cash flow, and can help manage working capital more smoothly. It can also take over the management of collecting payments from customers.

Key Terms and Features

Important things to know about factoring include the difference between recourse (you take responsibility if customers don’t pay) and non-recourse (the factor takes the risk). Also, fees, advance rates, and all contract terms should be understood before signing a factoring agreement.