Top 10 Questions to Ask When Looking for a Factor
Factor 2 Minimums & Requirements: $50,000 minimum monthly invoice volume; $4,000,000 maximum $5,000 minimum invoice size Minimum monthly discount total $5,000 Two year term contract Holdback Reserve 10% of outstanding invoices Rebates paid monthly Rebate payment = overage above 10% reserve requirement Setup Fees: Application Fee $500 Ongoing Rates & Charges: Advance: 90% of invoice amount Discount rate: 1.5% every 15 days Funds Transfer Charges: Only method: Wire fee $25 Other Charges: Early termination fee $20 per day for each day remaining in the curren term after notice of termination. Check conversion penalty 15% of invoice or converted amount, whichever is larger Monthly Lockbox Fee $250 Credit Check Fee $30 per search