Turn Your Accounts Receivable Into Cash With Invoice Factoring

 

Invoice Factoring Rates

What does it cost to factor invoices ?

Cash flow factoring, also known as invoice factoring and accounts receivable factoring, is the sale of your invoices for immediate cash. As most top-of-the-line factoring companies go, we purchase your account receivable and use factoring rates to determine factoring fees and charges.

We look at the following factors when we determine factoring fees and pricing your deal:

Monthly Sales Volume

Credit Worthiness of your customers

Average Invoice Size

Payment Terms

A typical 30 day invoice price will be 2% to 3%, if the invoice is aged 60 days the fee would go to 4% to 5%.

When compared to the cost of maintaining accounts receivables for 30 days or more, and the administrative expense associated with collections, factoring invoices is a wise alternative to traditional financing from banks.

Following is an example based on a $1,000 invoice:

Face amount of your invoice

$1,000

Discount earned by BTB (2%)

$20

Reserve Funds held

$200

Cash Advanced to you from BTB

$800

Customers Payment received by BTB

$1,000

Reserve Funds refunded to you less fee

$180

Proceeds retained by BTB (fee)

$20

(Fee is deducted from reserve)