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Accounts receivable
invoice factoring pricing is determined by several factors but the biggest
factor is the credit worthiness of your customer, their history of on time
payments and how long they take to pay. You and your company credit are
considered but your customer’s credit is critical in the approval and
pricing of accounts receivable invoice factoring.
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Accounts Receivable
Invoice Factoring Price Ranges
The cost of
our accounts receivable invoice factoring will vary from a low of
approximately 1.5 % upwards depending on all the pricing factors
mentioned below. Normally you will receive from 80 – 90% of the
invoice on the day after you submit it. We collect the invoice and
as soon as we receive the payment we remit the remainder to you less
our small discount fee. Before you factor and company invoices you
will know precisely what the terms are and you decide which
companies and which invoices you wish to factor.
To discuss our invoice
factoring pricing call:
888-581-5990
How
accounts receivable invoice factoring fees are determined:
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1.
Creditworthiness of your customers |
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Your company credit is secondary to your customer’s
credit when determining the approval and the pricing
of accounts
receivable invoice factoring. In general the better
your customer’s credit, the quicker they pay and the
better their payment history the bigger the percentage
of the invoice you will receive up front and the less
the factoring discount.
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2. The
industry that your customers are in: |
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History has taught us that some industries are riskier
than others when collecting invoices and therefore with
those industries we normally advance a smaller
percentage up-front and assess higher invoice factoring
discount fees. Some types of construction and
contractors fall into this category.
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3. The
amount and the size of the invoices factored |
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In
general with accounts receivable invoice factoring the
more companies whose invoices you factor the lower the
discount fee. This is because with a higher number of
customers the risk is spread out and not concentrated on
any one customer.
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Invoice Factoring is Easy
to Set Up and Easy to Use
Once most companies begin
utilizing accounts receivable invoice factoring they continue to use
it, sometimes forever. The cost of invoice factoring is so small
compared to the benefits of knowing you will get paid as soon as you
do the work or deliver the goods far outweighs the small price per
invoice.
Call For Your FREE
Invoice Factoring Quote Today!
888-581-5990
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