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Trident Funding Solutions
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Invoice factoring cost estimator

Factoring is a true sale of your receivables, quoted as an advance and a fee. You sell an invoice at a discount: the factor advances most of the face up front, holds a reserve, and releases it net of the fee when your customer pays. Pick your industry and move the sliders to watch the advance, the reserve, and the financing cost become real dollars. Nothing you enter is collected.

Invoice factoring cost · educationalEducational market data. Not Trident pricing, not a quote, and not an offer.
Industry

Industry sets the advance percentage and factoring fee bands, because the two real drivers, your customer credit and how fast the invoice pays, differ by industry. Freight and staffing invoices are clean and fast, so they advance highest and cost least; construction and medical sit lower. The bands never blend across industries.

Recourse

Recourse is the cheaper default: you buy back an invoice your customer never pays. Non-recourse costs more and covers customer insolvency only, not disputes or short-pays.

A single invoice of this size, for a clean illustration. Factoring is sold per invoice or per batch, and the math scales with the face amount. Not a suggested amount and not Trident pricing.

Reserve is 7%, the face minus the advance, released to you net of the fee once your customer pays. The market range for a freight factoring deal runs 90% to 97% advance, centered near 93% (public market data, Jul 2026). Not Trident pricing. The SFNet 2024 survey puts the blended all-industry advance at 84.3%, a figure that spans every industry, so it sits below the freight band.

The market range for a freight factoring deal runs 1% to 3.5% per 30 days, centered near 2.8% (public market data, Jul 2026). Not Trident pricing. The freight fee band is anchored to public-factor SEC filings, the one hard-anchored segment; the advance percentage is advertised-derived.

The APR-equivalent below annualizes the fee over how long your customer takes to pay. The SFNet survey puts the blended collection time near 45.8 days, so a faster invoice annualizes higher and a slower one lower.

Invoice amount$25,000
Advance paid up front The invoice amount times the 93% advance.$23,250
Factoring fee The whole cost of the deal: the invoice amount times the 2.8% factoring fee.$700
Reserve released after your customer pays The 7% reserve, less the factoring fee, paid to you once your customer pays the invoice.$1,050
Total you receive Advance plus the released reserve, which comes to the invoice amount minus the fee.$24,300
Cost of financing Always shown in dollars, never hidden. For factoring this is the fee.$700
How this is estimated Factoring is a true sale of the invoice, not a loan and not an APR product, so this tool shows the native breakdown: advance, fee, and reserve. Figures are approximate; the signed agreement governs.True sale
APR-equivalent (for comparison only, not the native quote)

Over 45.8 days of collection time the 2.8% factoring fee annualizes to an APR-equivalent near 22.3% (the fee times 365 divided by the days to payment). Factoring is quoted as an advance plus a fee, so this figure is only for lining a factoring deal up against a loan APR, and it is never the native quote.

Market context · industry data, Jul 2026*

The 2.8% factoring fee sits in the typical cost band for a freight factoring deal. The freight factoring fee band is anchored to public-factor SEC filings, the one hard-anchored segment; the advance percentage is advertised-derived.

* Market data sources
  1. SFNet 2024 Annual Factoring Survey (Secured Finance Network): blended, all-industry realized advance about 84.3% with days to payment about 45.8 days, on a base skewed to apparel and textiles. It anchors the advance axis and the collection time, but not any one industry center.
  2. Triumph Financial (TFIN) SEC 8-K shareholder letters and 10-K: a public freight factor discloses a realized discount fee near 1.3% on a large-fleet book and a portfolio yield near 14% to 15%, on a book that is 97% transportation. This is the one hard anchor on the fee axis, and only for freight.
  3. CA DFPI SB 1235 and NY DFS 23 NYCRR 600: two states require a disclosed APR-equivalent on factoring, computed from the advance, the fee, and the days to payment, and the New York text states plainly that the disclosed figure is not the native factoring fee. This is the method behind the comparison overlay.
  4. Factor and aggregator pricing pages (eCapital, Crestmont Capital, Apex Capital, altLINE, FundThrough, Commercial Capital, 1st Commercial Credit): these bracket each industry advance and fee and agree on the ranking, but lean to advertised floors, so the non-freight fee bands and the by-industry advance centers are advertised-derived, not survey-measured, and the tool labels them directional.

Educational market data with full citations on file in substantiation/factoring-pricing-2026-07.md. Not Trident partner pricing, and not a quote.

Actual advances, fees, and pricing are set by independent funding partners and depend on your customer credit, the invoice, your volume, and your industry. Your offer will differ. The bands shown are industry market data from published sources as of Jul 2026, not Trident pricing. Partner fees, if any, are itemized on the offer itself: ask for all of them in writing.

Factoring is quoted as an advance plus a fee, not an APR, and the reserve comes back to you net of the fee. See the full explainer

How the math works

Reading invoice factoring.

A short read on what the estimate is doing, and where the real numbers still come from.

Industry sets the two axes

The advance percentage and the factoring fee both track your industry, because the real drivers are your customer credit and how fast the invoice pays. Freight and staffing invoices are clean and fast, so they advance highest and cost least; construction and medical sit lower. Industry figures, not a Trident quote.

Dominant axis

Advance plus fee, not an APR

Factoring is quoted on two native axes plus a mechanic: an advance percentage, a factoring fee per 30 days, and a reserve that equals the face minus the advance. The reserve comes back to you net of the fee once your customer pays. The APR-equivalent is only a comparison overlay, never the native quote.

How the math works

Where the numbers are firm, and where they are soft

Two anchors are hard: the SFNet survey blended advance and days to payment, and a public freight factor SEC-disclosed fee. Every other industry fee band and the by-industry advance centers are advertised-derived from factor and aggregator pages, so the tool labels them directional and never dresses them as measured prices.

Read the fine print

What this tool does not do

It does not predict approval or partner pricing, and it does not model every ancillary fee, the recourse fine print, or how fees step up on a slow invoice. It treats the fee as the cost of the financing for a clean illustration, so the signed agreement governs. Confirm every final number on the contract.

Educational only