WHAT IS THE COST OF FACTORING?
Factoring companies buy invoices at a discount off of the face value of the invoice. The discount rate that will be applicable to a new customer is negotiated and set up at the time the contract is signed. Generally, but not always, discount rates are between 2% to 4% of the face value of the invoice. Put another way, we are paying between $960 to $980 to buy an invoice of $1,000.
