How much does invoice factoring cost?
Invoice factoring costs come in two parts: the advance rate, the share of the invoice value paid to you up front, and the factoring fee, a percentage of the invoice value that is set per deal and often scales with how long your customer takes to pay. On a $100K invoice with an 85% advance and a 3% fee, you'd receive $85K immediately, and once your customer pays, the remaining $15K minus the $3K fee. Whether that cost is worth it depends entirely on what waiting 30-60 days for the cash is costing you.
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Last updated · Reviewed by Cody Dreis
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Breaking down the full cost of factoring
The advance rate: This isn't a cost: it's timing. The held-back portion (the "reserve") returns to you when your customer pays, minus fees. Stronger customers and cleaner invoices earn higher advance rates.
The factoring fee: Fees vary by lender and deal but are commonly structured per period, for example, a rate per 30 days outstanding, so an invoice paid in 30 days costs less than the same invoice paid in 60. The key variables: your monthly invoice volume (more volume, better pricing), your customers' creditworthiness (the factor is really underwriting *them*, not you), your industry, and contract structure.
Watch-the-fine-print items: Some factors add origination fees, monthly minimums, ACH fees, or termination charges; some require factoring all invoices rather than picking and choosing. Recourse terms matter too, who absorbs the loss if your customer never pays. A factor with a low headline rate and heavy add-ons can cost more than an honest mid-rate quote. Insist on the all-in cost per invoice before signing, which is exactly how Quordx Capital presents offers.
The comparison that matters: If slow receivables are forcing you toward an MCA priced on a factor rate, factoring is usually the cheaper way to pull the same cash forward.
Options for unlocking receivables
A/R financing / invoice factoring: 70-90% advanced against B2B invoices; cost rides on your customers' credit. Best for businesses with creditworthy commercial customers and 30-60 day terms.
Business lines of credit: $10K-$250K+ revolving, interest only on draws. Best if your gaps are modest and your credit qualifies, often cheaper for occasional needs.
Purchase order financing: funds supplier costs on confirmed orders before an invoice even exists. Best for product businesses whose crunch comes before delivery.
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How Quordx Capital Works
Factoring pricing varies widely between providers for identical invoices, which makes comparison the whole game. One 10-minute application, bank statements, sample invoices and customer details, ID, lets Quordx Capital's matching process match you against the factoring specialists among its 50+ lenders and return 3-7 fits with all-in costs disclosed. Decisions commonly arrive in 24-48 hours; first funding often within 3-7 business days, sometimes faster.
What to Expect
Transparent, all-in pricing on every option, advance rate, fee structure, extras, recourse terms, so you're comparing real costs, not teaser rates. If factoring would cost more than your situation justifies, Quordx Capital will point you to a cheaper structure or tell you to hold off. The matching itself costs you nothing and obligates you to nothing.
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Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures