Is Invoice Factoring Worth the Cost?

Posted by Gil Oliva on Fri, Dec 13, 2013 @ 07:41 AM

Factoring accounts receivables has become a valuable option for businesses that simply cannot wait to be paid by slow paying customers, but is it really worth the cost?

Let’s take a quick look at cost. When you decide to factor, your factoring company will set a rate, which is dependent upon several things, some of which are:

  • Sales volume
  • Invoice size
  • The creditworthiness of your customers
  • The number of creditworthy customers
  • The length of your contract with each customer
  • The number of days the invoice is outstanding
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Topics: Cash Flow, Factoring Accounts Receivable, Financing Government Contractors, About Invoice Factoring

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