Factor 1 Minimums: $100,000 minimum monthly invoice volume; $10,000,000 maximum $5,000 minimum invoice size Minimum monthly discount total $10,000 Holdback Reserve 5% of outstanding invoices Rebates paid monthly Rebate payment = overage above 5% reserve requirement Requirements & Setup Fees: Two year term contract Application Fee $500 Ongoing Rates & Charges: Advance: 90% of invoice amount Discount rate: 2.5% first 30 days, 2% every 30 days thereafter Monthly Lockbox Fee $400 Funds Transfer Charges: Choice of: ACH fee $10 Wire fee $30 Overnight check fee $25 Other Charges: Early termination fee 3% of the maximum amount of credit extended Free credit checks    Check conversion penalty* 15% of invoice or converted amount, whichever is larger *This is a penalty charged when a client receives a check for a factored invoice and instead of sending it to the factor immediately, deposits it into his bank account. This is known as “check conversion” and is both fraud and grounds for terminating the contract.
Top 10 Questions to Ask When Looking for a Factor