America’s Factors determines the factoring fee based on several factors, including the creditworthiness of your customers, the volume and value of invoices you plan to factor, the industry you operate in, and the terms of the factoring agreement. Here’s a breakdown of how these factors influence the factoring fee:

• Creditworthiness of Customers: America’s Factors assesses the creditworthiness of your customers since they ultimately bear the risk of non-payment.
• Volume and Value of Invoices: The total volume and value of invoices you plan to factor also impact the factoring fee. Factoring companies typically charge a percentage of the total invoice amount as the fee. Higher invoice amounts or larger volumes of invoices may result in lower factoring fees as a percentage of the total.
• Industry Risk: The industry you operate in can influence the factoring fee. America’s Factors considers factors such as industry stability, payment terms common in the industry, and historical collection performance.
• Factoring Agreement Terms: The terms of the factoring agreement, including the duration of the agreement, the frequency of funding, and any additional services provided by the factoring company, can affect the factoring fee. Longer-term agreements or agreements with additional services may result in lower factoring fees.
• Advance Rate: The advance rate, which is the percentage of the invoice amount that America’s Factors advances to you upfront, also impacts the factoring fee.

Overall, the fee is based not on the strength of your company but rather on the quality of your accounts. Therefore, the cost fluctuates according to the credit worthiness and performance of your receivables. When compared to both the cost of maintaining receivable for 30 days or more, and the administrative expenses associated with collections, factoring is a prudent business strategy. Many clients use this as a discount, allowing them to offset the factoring fee and work with America’s Factors at a minimal cost.

For more information, please contact America’s Factors at 800-794-6786, complete the Inquiry Form or Online Application.