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Return To Factoring FAQ Archive   At what percentage rate do factoring companies generally purchase accounts? Answered By Editor On average, a factoring company will purchase an account for about 25% less than what it is actually worth. This will vary according to the age of the account as well as the amount owed. Once the invoice or account is purchased, the factoring company takes full responsibility for collecting the debt. The factoring company may also be required to pay an additional small percentage once collection efforts prove successful. The factoring company makes arrangements directly with the debtor of the invoice as to whether a lump sum payoff will be offered. keywords: Factoring | Debt Factoring | Invoice Discounting | Accounts Receivable | Cash Flow | Factoring Companies | Debt Collection Business Working Capital Business Venture Capital

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