Accounts Receivable Factoring Fees

Whenever your business extends credit or terms to a customer, it is effectively providing interest-free financing until that invoice is paid. What's worse, frequently you are loaning your customer this money for 30 to 90 days with no interest! Obviously, this has a tremendous affect on your cash flow.

In fact, extending customer credit impacts your business in three ways:

1.  Purchase discounts from vendors can be impossible if you do not have the available cash flow.

2.  It may result in a lack of funding which could prevent your business from accepting a profitable deal from a new, more creditworthy customer.

3.  You lose interest that your business could have earned with the cash in hand, which can add up over time.

Basically, The longer your customer takes to pay, the greater the impact on your company's bottom line. But with the help of Factoring Associates, you can exchange your customer invoices for immediate cash to reinvest into your business - meaning better cash flow now!

Services & Costs
Factoring Associates advances your company between 70% and 80% of your customer invoices within 24-48 hours. Then, once we receive full payment on invoice, we rebate you the remaining balance, minus our fee.

Our Fees
Factoring Associates fees are generally 2-4% of total balance for each 30 day period. We base these factoring fees upon these specific variables:

• Total factoring sales volume
• Average size of invoice
• Industry conditions
• Terms of sale
• Number and credit strength of your customers, as well as their payment histories

As an example, if an invoice you have us factor is paid within 30 days or less, your business will receive 96-98% of the invoice total. Of course, our fees are extremely competitive, and we do negotiate, depending on the terms. And, it is important to remember that our response time is quick, and our services flexible.

One "real world" example: If a $20,000 transaction is charged and we collect enough to repay the $16,000 Advance (80%) and pay our fee in a time frame of 29 days from the date of the advance, the factoring fee will be $800 (4%) and your rebate will be $3,200 (16%).

The above is merely an example of typical fees. We invite you to contact us here to see how Factoring Associates can help you get immediate access to cash. Or, apply here to get started with factoring.

FAQ | Glossary | Process | Required Documents | Services
Accounts Receivables Outsourcing | Small Business Funding
Accounts Receivable Management | Business Receivable Factoring
Factoring Financial Services | Accounts Receivable Factoring Company
Factoring Accounts Receivables | Accounts Receivables Factoring