How much does a Trade receivables Finance service cost?
The A.S.F.’s answer: Trade receivables Finance is paid for by two types of commission. The first one is the Trade receivables Finance commission that pays for bookkeeping, relaunching, collection and the guarantee, and is within a range of 0.5% to 2% of the revenues entrusted to the factor. It is determined on the basis of characteristics that are specific to every company: revenues, invoicing processes, clientele, etc. The second one, the financing commission, is comparable to the short term market rate. Trade receivables Finance is used to transform fixed costs into variable costs. When the cost of external service has been determined, the company and its accountant can in this way objectively compare it with internal costs. The amount of financial savings that Trade receivables Finance makes possible depends on the specific characteristics of each company. In any case, companies that use Trade receivables Finance observe a significant reduction in delays of payment, which reduces th
