Factoring Rates
Factoring rates can differ dramatically from lender to lender. It is important to consider total costs when making a comparison and we are happy to do this for you. It is also important to consider what level of service you require.
The two main fees are the service fee and the discounting fee and we will look at each of these.
Service fee: the service fee is the charge for administering the factoring service. Typically the more customers you have and the more invoices you issue the higher the service fee because of the increased workload. The higher your turnover the lower the percentage service fee will be. It is important to remember this if your turnover has increased since you last reviewed your facility.
Discounting fee: this is essentially your cost for borrowing money. It is made up of a base rate and a margin. It is important to consider both when making a comparison of factoring rates.
Choosing the right lender for your business is imperative and at Smart Factoring Quotes we can ensure you get the best facility for your business at the best possible rates.
We can explain to you what services are on offer and what the total costs involved are. This will allow you to make an informed decision.
