Free carrier tool · Cash-flow comparison
Factoring vs Direct Payment Calculator
Compare two payment paths using only the terms you enter. See how explicit fees affect cash received, how many days one option may accelerate payment, and how your own annual working-capital assumption changes the timing comparison.
Cash timing versus cost
A faster payment can cost more even when the invoice value is unchanged.
This comparison separates explicit fees from the value you assign to waiting for cash. The working-capital input is your own assumption, not a financing quote, APR, market benchmark, or recommendation.
Your terms
Compare one invoice.
Estimated comparison
Cash received and timing
- Factoring explicit net cash
- —
- Direct explicit net cash
- —
- Factoring fee total
- —
- Direct fee total
- —
- Factoring waiting-cost estimate
- —
- Direct waiting-cost estimate
- —
- Factoring amount retained
- —
- Direct amount retained
- —
- Payment timing difference
- —
- Explicit cost per accelerated day
- —
Arithmetic estimate only. The waiting-cost estimate applies your own annual assumption as invoice × annual rate × days ÷ 365. This tool is not accounting, tax, legal, lending, credit, factoring-contract, banking, or financial advice. It does not model every contract term and does not predict payment, disputes, recourse, chargebacks, broker credit, cash flow, profit, or revenue.
Transparent math
The comparison uses only the terms you enter.
No industry-average factoring fee, payment speed, cost of capital, broker credit assumption, or profitability recommendation is inserted by Hermes.
- Factoring fee
- Invoice × factoring fee % + factoring fixed fee
- Factoring explicit net cash
- Invoice − factoring fee
- Direct payment fee
- Invoice × direct/quick-pay fee % + direct fixed fee
- Direct explicit net cash
- Invoice − direct payment fee
- Waiting-cost estimate
- Invoice × annual working-capital assumption % × payment days ÷ 365
- Net after entered costs
- Explicit net cash − waiting-cost estimate
- Adjusted difference
- Direct net after entered costs − factoring net after entered costs
- Days accelerated
- Direct payment days − factoring payment days
- Explicit cost per accelerated day
- Explicit net-cash difference ÷ days accelerated, when factoring is faster
- Amount retained
- Explicit net cash ÷ invoice × 100
Contract terms still matter
A fee-and-days comparison is not a full factoring-contract review.
Before making a payment decision, separately verify the terms that can change the real economic or operational result.
Who bears nonpayment or dispute risk, and under what events can funds be charged back?
Does the provider hold a reserve, and when can any retained balance become available?
Check ACH/wire, same-day, monthly minimum, invoice-processing, termination, and other contractual charges.
Confirm where the broker must remit payment and how payment instructions are verified before any change.
Review exclusivity, termination notice, renewal, minimum volume, and any obligation to factor eligible invoices.
Funding can depend on customer credit, documentation, delivery evidence, claim status, and provider rules.