Receivable Factoring Secrets That You Never Knew
Is Receivable Factoring For You?
The key to knowing if receivable factoring is for you is to not
to look only at the bottom-line factoring fee, but also to
consider how your company may increase it's profits through
show more...
h factoring.
Here is additional information on accounts receivable factoring
to help you with your decision.
How are fees and advance rates determined?
It is based on several factors:
The creditworthiness of your clients
Your monthly billing volume
Average invoice size
Average days to payment
Fees can range from 2-5 % of the invoice's face value.
For example if the invoice's value is $1,000;
a fee of 3% equals $30.
What is an accounts receivable factoring advance?
The amount of money you receive immediately when we
buy your invoice. The balance is returned to you when
your customer pays the invoice.
Advances range from 60-95% of the invoice's face value.
For example if the invoice's value is $1,000 an advance
rate of 80% equals $800. The balance of $200 less the
factoring fee is returned to you when your customer pays the invoice.
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