What to Expect from Invoice Factoring Rates
The search for business financing is often overwhelming. After all, if your company’s cash flow is suffering the last thing you want to consider is adding another expense to your balance sheet. In such a situation, invoice factoring is an ideal alternative that offers low rates without creating new debt. Invoice factoring rates can be tailored to an individual company’s needs so that the money you’ve earned can go further.
How Factoring Rates are Set
Factoring fees start between .69% and 1% of the total invoice value for a 30-day period, but they may vary depending on your customers’ credit and the number of invoices you have to factor. Customers with strong credit ratings and a higher volume of invoices to factor may each contribute to a lower factoring cost.
Another way that many factors will work to reduce your factoring fees is by offering a volume discount: for example, you may have a factoring rate of 2% for the first $100,000 you factor, and anything over $100,000 would be factored at 1.5%.
Factoring Fees and Advance Rates
Every factoring relationship features an established advance rate in conjunction with the factoring fee. Advances range from 80% to 90% (and higher in some industries), and a higher advance rate is usually accompanied by a higher fee. When looking for the right factoring company, it is important to know whether the advance or the factoring fees will have the greater impact on your business.
If you work with reliable customers and need more money up front, you may choose a higher advance with the associated factoring fee. If you have slow-paying customers, on the other hand, a lower fee can help you keep your factoring costs in check.
Factor Finders can help you find industry-low factoring rates. Contact us now to learn more!
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Factoring Costs vs Benefits
There are several advantages to invoice factoring that make it the ideal alternative funding solution, in addition to reasonable factoring rates. Some of the benefits you can get from a factoring relationship include:
Find the Best Factoring Rates with Factor Finders
When it comes to low factoring fees, we know where to find them. Our nationwide network of funding partners can get you the best factoring rates and advances and provide the most comprehensive benefits – no matter your industry!
Whether you are just getting started or positioning your company for new growth, we will connect you to the right factoring company to meet your needs.
Some of the industries we serve include:
Oil and Gas
Contact us to receive a quick factoring quote. Once you submit the necessary documents, you can receive a funding decision and have your account set up in as little as 3 to 5 working days – and receive immediate funding thereafter!