The Basic Price

The cost of factoring typically ranges between a discount of 2% to 4% per month of the invoice amount. Thus, on average the cost is 1/10th of 1% per day = 1% per 10 days = 3% for 30 days. This is roughly equivalent to an APR of 36%.

The Advance Percentage

 We typically advance 90% of the invoice value and reserve 10%. Thus, if you decide to factor a $1,000 invoice, we would deposit $900 into your bank account within a day. You keep the entire advance until your customer pays. After your customer pays, and we recover our advance plus a fee, you get a rebate for the balance.

Pricing Variables

The combination of the discount and the advance percentage constitutes the price of factoring. To determine a price, we look at a number of variables, such as how well your customers pay, the average invoice size, sales volume, etc.

All else being equal, the smaller the average invoice size and volume factored, the higher the price. Also, the lower the risk in an account, the lower the price. And vice versa. Over time our policy is to gradually lower the price for our valued clients.

When shopping for invoice financing, you should consider if there are any additional fees--hidden or otherwise. Our fees are simple and transparent. We typically charge a  fee of 1/10th of 1% per day of the invoice value. Thus, on a $1,000 invoice, our fee would be $1 per day. Also, our minimum fee to factor an invoice is $5. Because of that minimum, factoring invoices under $100 may not be worth the expense.

Your situation is unique. To find out whether factoring may or may not be a good fit for your business, please call Fuller Business Funding at 541-484-7044.