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:
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Monthly Sales
Volume
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Credit Worthiness of your
customers
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Average Invoice
Size
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Payment Terms
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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.
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Following is an example based
on a $1,000 invoice:
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Face amount of your
invoice
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$1,000
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Discount earned by BTB
(2%)
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$20
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Reserve Funds held
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$200
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Cash Advanced to you from
BTB
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$800
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Customers Payment received by
BTB
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$1,000
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Reserve Funds refunded to you
less fee
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$180
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Proceeds retained by BTB
(fee)
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$20
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(Fee is deducted from
reserve)
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