Receivable Factoring Secrets That You Never Knew

Is Receivable Factoring For You?The key to knowing if receivable factoring is for you is to not to look only at the bottom-line factoring fee, but also toconsider how your company may increase it's profits through factoring.Here is additional information on accounts receivable factoring to help you with your decision.How are fees and advance rates determined?It is based on several factors:The creditworthiness of your clientsYour monthly billing volumeAverage invoice sizeAverage days to paymentFees can range from 2-5 % of the invoice's face value. For example if the invoice's value is $1,000; a fee of 3% equals $30.What is an accounts receivable factoring advance?The amount of money you receive immediately when webuy your invoice. The balance is returned to you when your customer pays the invoice.Advances range from 60-95% of the invoice's face value. For example if the invoice's value is $1,000 an advancerate of 80% equals $800. The balance of $200 less thefactoring fee is returned to you when your customer pays the invoice.

Channel: News & Politics
Uploaded: November 30, 1999 at 12:00 am
Author: receivablefactoring

Length: 02:15
Rating: N/A
Views: 439

Tags: company  factoring  invoice  receivable  receivables  service  

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