Opportunity Cost Calculator

Our opportunity cost calculator – or invoice factoring calculator – can show you how factoring invoices can help you unlock the working capital that is tied up in customer invoices for weeks or months at a time, so you can grow your business more quickly.

Invoice Factoring – Opportunity Cost Calculator

Opportunity Cost Calculator

Use our invoice factoring calculator to determine whether factoring receivables could expedite cash flow in your business.

  • Your Current Total Accounts Receivable
    $1,000 $5,000,000+
    $0
  • Your Average Customer Invoice Amount
    $0 $250,000+
    $0
  • Advance Rate for Factored Invoices (Advances usually range from 85-98%)
    85% 98%
    0%
  • Factoring Fee (Factoring fee usually ranges from 1-5%)
    1% 5%
    0.50%

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  • Expedite working capital tied up in customer invoices, without waiting for customers to pay Working Capital Unlocked $0
  • Average Factoring Fee $0

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Using Our Invoice Factoring Opportunity Cost Calculator

Use the sliders to estimate how much money you currently have tied up in customer invoices (unpaid receivables) and what the average or typical invoice amount is.

Adjust the sliders for advance rate and factoring fee and hit ‘calculate.’  You’ll see that the calculator expands automatically to show you how much working capital you could access immediately if you factored customer invoices with us, instead of waiting for customers to pay.

Based on the average customer invoice amount, you will also see the cost of factoring displayed as the average factoring fee. Not only does it demonstrate the low cost of this type of financing, but you can also compare this type of fee to the amount of money you could save when expedited cash flow allows you to take advantage of early-pay discounts or the additional revenue you could earn if you had the ability to take on new business more quickly .

These numbers are just estimates; feel free to request a copy by email or request a quote, and we can begin working on a factoring agreement that is tailored to the needs of your business. We take pride in providing a high level of customer service and offering our clients flexible options that best-suit their organization, instead of a one-size-fits-all type of program.

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Opportunity Cost Calculator: What is ‘Opportunity Cost?’

Simply put, factoring opportunity costs are the things that you can’t accomplish due to slow cash flow or while waiting for your customers to pay. The “cost” is equivalent to all of the alternatives and benefits you can’t have when you choose another alternative.  In this case, the alternatives are all of the things you cannot do because you are not expediting cash flow by factoring invoices.

For instance, for a trucking company, choosing to take the freight of Manufacturer A across the country may preclude you from taking the freight of Manufacturers B, C, and D across the state during the same time period using the same resources, or for some period of time afterward, because you are waiting 30 or more days for Manufacturer A to pay.

Either way, a choice between two (or more) options must be made, and the alternative not chosen, and its inherent benefits, comprise the opportunity cost for the trucking company in this opportunity cost example.

The Opportunity Cost of Not Factoring Invoices

Any business that invoices customers for payment or waits for payments from third parties (such as e-commerce selling platforms) should consider the opportunity cost of not factoring receivables. In other words, would reinvesting more quickly allow you to receive a better return than waiting for weeks or months to receive the money customers owe you?

Businesses that factor invoices have quicker access to working capital they have already earned – money they would otherwise have to wait for because it is tied up in accounts receivable invoices. The opportunity cost for not factoring invoices could include:

  • Inability to take on additional accounts
  • Difficulty fulfilling large orders
  • Unable to add infrastructure or new equipment
  • Limits on expanding inventory of products or new lines of service
  • Inadequate cash flow to meet payroll and other business operational expenses
  • No leverage to negotiate better terms with vendors and suppliers
  • Unable to respond to emerging opportunities

Request a Free, No-Obligation Invoice Factoring Proposal

Get answers in 24-48 hours – or even faster

Don’t miss any more of the growth opportunities invoice factoring provides.

Now that you know the opportunity cost of slow paying customers and low cash flow, apply online or contact us at 866-855-3640 for a free, no-obligation factoring quote. When you factor with us, you can expect:

  • Factoring fees as low as 1%
  • High advances – up to 98%
  • No long term contracts
  • No monthly minimums
  • Free same day funding
  • No cost to apply and no hidden fees
  • Free credit checks on your customers
  • Choice of reducing overhead by turning invoicing over to us

Our goal is to help our clients grow their businesses to the next level. To do this, we provide a consistently high level of service through dedicated account managers and forgo long term contracts, preferring to earn your business initially, and continued patronage over time through our performance and professionalism.

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