Factoring Fees,Cost, and Pricing
Although some things go on a case-by-case basis, once you read through our short guide, you’ll have more of the knowledge you need to make an informed decision about what is best for you and your business.
Here is some of the general information we’ve prepared that you should know when looking into what route to take with your funding needs.
What Are Factoring Fees?
You can expect typical factoring fees for a funding company to be somewhere along the lines of 2%–4.5% for the first month and then about 0.5% for every additional 10 days that the invoice remains unpaid. These factoring fees are sometimes referred to as invoice discounting rates, so don’t get confused if you see that term among your other online research.
Some factoring organizations offer a flat-fee pay structure where a one-time fee is charged upfront while others may charge another way, such as a pay-as-you-go format. You should be aware of these changes so you can determine what is most ideal for you.
When it comes to us, our factoring fees tend to hover around 0.07% and 0.1% each of the days an invoice is outstanding, or once it’s factored. For 30 days, this would accumulate to only 2.29%–3.0%! We like to make sure our customers have the fairest funding options around and a possible solution that is tailored to them.
In most cases, we have no monthly minimum volume requirements. However, we prefer a volume of at least $10,000 per month, regardless of whether it’s one or several transactions combined. More volume can actually translate to lower rates and greater revenue, thus everyone benefits—both you and us at Factor Funding. Your business success is our success, too.