Factoring Fees,Cost, and Pricing

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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.

Any Other Potential

Factoring Fees to Consider?

The exact rate you end up paying can depend on a number of factors unique to you:

  • Your industry
  • The sheer volume of invoices you factor
  • The quality, or “creditworthiness,” of your customer base
  • The specific terms of your factoring contract
  • How many outstanding days there are on open invoices—in other words, how many days, on average, it takes your customers to pay you

Advances are also dependent upon these types of variables. For instance, advances typically range from 70% to 85%, with some exceptions—such as transportation and staffing where advances tend to go higher.

Again, we want you to be in the know, so look out for other funding companies trying to sneak by with unfair factoring fees. Sometimes their credit limits are designed to set a high monthly minimum fee, and depending on the accounts you would like to factor, 80% can be on the low end of what might be made available.

We do not lock you into long-term contracts that you are not comfortable with. We will make sure you understand what is going on at all times instead of tricking you with obscure or befuddling jargon. Once you sign on with us, we are partners in this process and genuinely care about your company goals. What you want is a reasonable rate that is also tied to a lower advance rate.

GET IN TOUCH WITH FACTOR FUNDING

Get Started Factoring With Us

To get started, simply fill out the form and we will be in touch to assist you in starting your journey to powerful and convenient financing for your business. With funding fees and rates as low as 0.5%, fast funding, and an easy application, you won’t be disappointed—you may just wish you looked into this option sooner!