Forfaiting · Factoring

Forfaiting and factoring cost calculator

Compare what the seller actually receives after factor or forfaiter discount. Net proceeds = receivable minus (rate x days / 360) minus admin fee minus FX cost.

Last updated 2026-05-09. Math runs in your browser, no data leaves your computer.

General guidance only, not legal or professional engineering advice. Verify against the cited primary sources (IMDG, REACH, ChAFTA, RCEP, Customs Tariff Act, supplier SDS, etc.) before committing to a shipment, declaration, or contract. Sourzi assumes no liability for outcomes based on these calculators.

When forfaiting and factoring pay back

Both products turn a future receivable into present cash at a cost. The seller takes a discount; the factor or forfaiter takes the time-value-of-money plus a credit-risk premium plus a small admin margin. The right answer depends on the seller cost of capital. If your treasury rate is 6% and the factor offers 9.5% on OA 60, factoring costs you 3.5% per annum. For a 60-day OA that is 0.58% of the receivable; cheaper than holding the receivable open if you have alternative uses for the cash that yield more than 9.5% annualised (which most operating businesses do).

Non-recourse factoring or forfaiting transfers credit risk. The seller pays a higher discount rate (1 to 3 percentage points more than recourse) but stops worrying about buyer default. For first-time buyers or markets with weak creditor protections, the credit-risk transfer is often worth the premium.

FX cost matters when the receivable is in one currency and the seller settles in another. Factor settlement in USD when the receivable is in EUR adds 0.3 to 1% FX margin. The tool exposes this as a separate line; replace with your factor actual quote.

Frequently asked

What is the difference between forfaiting and factoring?

Forfaiting: non-recourse purchase of an LC-backed receivable by a forfaiter. Seller gets cash now; the forfaiter takes the credit risk on the LC issuing bank. Used for medium-to-long-term receivables (60 to 720 days). Industry-standard for LC 60 / LC 90 / LC 180 transactions where the seller wants immediate cash.

And factoring?

Factoring: discount of an open-account receivable by a factor. Recourse (seller still bears credit risk if buyer defaults) or non-recourse (factor takes the risk at a higher fee). Typical for OA 30, OA 60, OA 90 receivables. Cheaper than forfaiting but with more strings (assignment of receivables, monitoring).

How does the discount math work?

Discount rate (annualised) times days to maturity divided by 360 or 365 days = discount cost. Receivable USD x discount rate x days / 360 = discount fee. Plus an admin fee (usually 0.1 to 0.5% flat) and an FX fee if currencies cross.

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