What does it cost to factor a $60,000 staffing invoice?

Published 2026-10-29 · Timecard Capital · Nothing here is gated and nothing here is an offer.

Short answer

At the illustrative rate used across this site, factoring a $60,000 staffing invoice that the client pays at day 45 costs $2,250. You receive $54,000 (90%) within 24 hours of invoice approval and $3,750 when the client pays, for $57,750 in total. The fee is 2.5% per 30 days, charged by the day, and your actual rate is set by underwriting your clients and your file. This page is an illustration, not an offer.

The three numbers on every factored invoice

Every factoring quote reduces to three figures, and once you can read them you can compare any facility against any other.

• Advance rate. The share of the invoice face value funded up front. At Timecard Capital it is up to 90%. On $60,000 that is $54,000 in your account the day after the invoice is approved.
• Reserve. The rest of the invoice, held until the client pays. On a 90% advance the reserve is 10%, or $6,000. The fee is deducted from the reserve, never from your advance.
• Fee. A percentage of the invoice face value for each 30 days the invoice is outstanding, prorated by the day. The illustration uses 2.5% per 30 days.

The $60,000 invoice, line by line

A light industrial agency bills a distribution client $60,000 for two weeks of placed workers on net-45 terms. It submits the invoice with the approved timesheets on Monday.

Read down the fee column and the pattern is the whole product: the cost tracks how long your client takes to pay, and nothing else. A client that pays in 30 days costs you $1,500 on this invoice. The same invoice to a client that pays at day 90 costs $4,500. Your advance does not change; only the released reserve does.

Two more things fall out of the table. First, a slow client is not a reason to decline the invoice; it is a reason the fee is higher, and the fee is always deducted from the reserve rather than clawed back from your payroll. Second, because the fee is prorated by the day, a client that pays at day 38 is charged for 38 days, not rounded up to 60.

What is not in the fee

Timecard Capital does not charge an application fee. The advance is not a loan, so there is no interest accruing on a balance and no fixed daily debit out of your operating account; the invoice pays the facility off when the client pays. When you compare a factoring quote, ask whether the figure quoted is the fee per 30 days or a flat fee for the first period plus increments after it, and whether anything is charged per invoice, per wire or per month. Those extras are where two quotes with the same headline rate end up costing different amounts.

How the rate itself is set

The rate is set by three things, in roughly this order: the credit of the clients being factored, how long they take to pay, and how much you invoice each month. Strong institutional and corporate clients that pay on terms price better than a book of slow-paying small accounts. Higher monthly volume prices better than occasional invoices. Your own credit score is not in the list, which is why factoring has no minimum FICO. A recourse facility, where an unpaid invoice comes back to you, prices below a non-recourse facility, where Timecard Capital carries the client’s credit risk.

Is $2,250 expensive?

The right comparison is not to a bank loan you cannot get this week. It is to what the $54,000 does on Monday. If it covers payroll for workers already placed on a contract that bills $60,000 every two weeks, the fee is the cost of running the next placement rather than turning it down. If the alternative is a working capital advance repaid by fixed daily ACH, compare the total cost of that advance for the same period against the fee column above. If the alternative is a line of credit and you qualify for one, read our factoring vs. line of credit comparison; the honest answer is sometimes the line.

What you’ll need for a real quote

• The four-minute application
• A/R aging report showing open invoices and their age
• Client list, so we can run the credit that sets your rate
• Sample invoices with approved timesheets
• 3 months of business bank statements
• Your clients’ payment terms (net-30, net-45, net-60) if they are not on the invoices

A facility opens in 3 to 5 business days on a complete file, and after that each week’s batch is funded within 24 hours. The quote you get back is written in the same three numbers as this page: advance rate, reserve, fee per 30 days.

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Related: Invoice factoring · How payroll funding works · Factoring vs. a line of credit · Disclosure · What you need to apply.