How much does factoring cost?
The cost structures of factoring companies vary across geographies. However, the usual heads of costs include an interest charge for the funded amount and service fees on transactions. Additional add-on services availed of like credit protection and collection etc could be charged separately depending on the package structured with the client company. While factoring arrangements may end up being priced slightly richer for the incremental risks involved, it would be fair to assume that the variation (compared with traditional sources) would be fairly small.
