How much does invoice factoring cost?

What about factoring cost? When you decide to factor, your factoring company will offer a rate, which is dependent upon several things such as:

• 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

Factoring often appears to cost more than a traditional loan, but if you are experiencing cash flow challenges the cash flow shortage may have devastating effects on your business.

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