Accounts receivable factoring
- Business scope
- Provider lists freight, staffing, janitorial services, manufacturing and other small businesses and startups.
- Funding process
- Invoices are sold for an advance; once customers pay, advances, discounts and associated fees are deducted and the remainder returned.
- Published pricing indication
- Pricing page describes its fees as around 0.07% to 0.1% per outstanding day. It separately quotes 2.29% to 3.0% for 30 days; those descriptions do not reconcile exactly at the lower end. Request the actual day-count calculation.
- Volume
- In most cases no monthly minimum is required, but the provider prefers at least $10,000 monthly volume across one or several transactions.
- Advance
- Pricing page discusses typical 70% to 85% advances, with higher exceptions for transportation and staffing. This is indicative, not an approved advance for your invoices.
- Cost drivers
- Industry, volume, customer credit, invoice age and contract terms affect the quote.
- Recourse and obligations
- Obtain the specific repurchase, reserve, guarantee and security provisions. The reviewed program pages do not establish universal non-recourse coverage.
- Customer handling
- Receivables processing and collections can be outsourced to the provider. Confirm customer notices, payment routing and dispute management.
Provider sources: Receivables program and collections · Provider-specific pricing and volume preference · Provider scope and business types
