Would you like to contribute to this site?
Factoring Menu
Submit an Article
Submit a Tip
Place your Ad
Add URL
Factoring Questions?
Contact Us
| |
What does factoring cost?
Answered By Editor
The cost of factoring is negotiated between
the buyer and seller. The amount is usually a
percent of the total account balances. The
fee will be based on the risk the buyer is
taking, such as the expectation of
uncollectable balances. It will also take
into account the expected time it will take
to collect the balances. For good accounts
with a 30-45 day due balance, a 10% fee is
typical. For others, 20% to 25% is typical.
keywords: Factoring | Invoice Discounting | Accounts Receivables | Accounts Receivable Factoring |
Cash Flow | Debt Collection
|
 |
|