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)
|
|