Top 10 Questions to Ask When Looking for a Factor
Factor 3 Minimums: $20,000 minimum monthly invoice volume; $500,000 maximum $1,000 minimum invoice size Minimum monthly discount total $1,000 Holdback Reserve 15% of outstanding invoices Rebates paid monthly Rebate payment = overage above 15% reserve requirement Requirements & Setup Fees: Two year term contract Application Fee $250 Ongoing Rates & Charges: Advance: 85% of invoice amount Discount rate: 4% first 30 days, 3.5% every 30 days thereafter Administrative Fee $1 per invoice Monthly Lockbox Fee $250 Funds Transfer Charges: Choice of: ACH fee $5 Wire fee $25 Overnight check fee $25 Other Charges: Early termination fee 2% of the maximum amount of credit extended Free credit checks Check conversion penalty 15% of invoice or converted amount, whichever is larger