Invoice factoring is a useful source of financing for businesses that may not qualify for a business loan or business line of credit. Many might ask, “how much does factoring receivables cost?” And “how much does a factoring company charge?” Like any form of financing, there are invoice factoring fees. To learn what the costs of factoring might be for your company, follow the steps below on our invoice factoring calculator.
Invoice factoring rates are based on the monthly volume of invoicing sold to a factoring company. As your monthly sales improve, and you factor a higher volume of invoices, the factoring fees will go down.
When choosing a factoring company most people focus on advance rates and factoring fees. To use factoring to it’s fullest potential, business leaders should research the additional service features when comparing factoring companies. The additional services are what separates one factor from another. Read about comparing factoring companies.
Factoring is a great way to provide your company with the capital flow that it needs to run efficiently. However, as with any kind of lending, it is important that you completely understand the cost of factoring. Continue reading about how much factoring costs.