How to Run as Small Factoring Business
Chart 10-1: Amounts Needed to Factor
Invoice Amounts 10,000 25,000 50,000 100,000 250,000 500,000   Amt of Invcs 10,000 25,000 50,000 100,000 250,000 500,000   Amt of Invcs 10,000 25,000 50,000 100,000 250,000 500,000  80% Advances 8,000 20,000 40,000 80,000 200,000 400,000   80% Advances 8,000 20,000 40,000 80,000 200,000 400,000   80% Advances 8,000 20,000 40,000 80,000 200,000 400,000  70% Advances 7,000 17,500 35,000 70,000 175,000 350,000   70% Advances 7,000 17,500 35,000 70,000 175,000 350,000   70% Advances 7,000 17,500 35,000 70,000 175,000 350,000  5% Avg Discount 500 1,250 2,500 5,000 12,500 25,000   5% Avg Discount 500 1,250 2,500 5,000 12,500 25,000 	  5% Avg Discount 500 1,250 2,500 5,000 12,500 25,000  0% Cost of Money  0 0 0 0 0 0 	 (=12% APR) 1% Cost of Money  70 175 350 700 1,750 3,500 	 (=18% APR) 1.5% Cost of Money  105 263 525 1,050 2,625 5,250 Income Before  Overhd 500 1,250 2,500 5,000 12,500 25,000 	 Income Before  Overhd 430 1,075 2,150 4,300 10,750 21,500 	 Income Before  Overhd 395 988 1,975 3,950 9,875 19,750 Annlzd ROI w/ 80% adv 75% 75% 75% 75% 75% 75% 	 Annlzd ROI w/ 80% adv 65% 65% 65% 65% 65% 65% 	 Annlzd ROI w/ 80% adv 59% 59% 59% 59% 59% 59% Annlzd ROI w/ 70% adv 86% 86% 86% 86% 86% 86% 	 Annlzd ROI w/ 70% adv 74% 74% 74% 74% 74% 74%  Annlzd ROI w/ 70% adv 68% 68% 68% 68% 68% 68%