Model A vs Model B — Invoice Factoring Calculator

Model A vs Model B — Invoice Factoring Calculator

Compare interest-based (Model A) vs flat-discount (Model B) factoring across invoice amounts, payment days, and rates.

Inputs
Invoice amount
$1.0M
$100K$100M
Payment day
45 days
Day 1Day 180
Prime rate (%)
7.50%
4%12%
Spread over prime (Model A)
4.50%
1%8%
Flat discount rate (Model B)
3.00%
2%5%
Summary at selected payment day
Cost curve — Model A vs Model B across payment days
Model A cost ($) Model B cost (flat) Selected day
Day-by-day comparison table
Days to pay Model A rate Model A cost Model A net (day 1) Model B cost Contractor saves