Top 10 Questions to Ask When Looking for a Factor
Factor 4 Minimums: $10,000 minimum monthly invoice volume; $250,000 maximum $500 minimum invoice size Minimum monthly discount total $500 Holdback Reserve 20% of outstanding invoices Rebates paid monthly Rebate payment = overage above 20% reserve requirement Requirements & Setup Fees: One year term contract Due diligence set up fee $100 UCC Filing Fee $75 Ongoing Rates & Charges: Advance: 75% of invoice amount Discount rate: 5% first 30 days, 4.5% every 30 days thereafter Facility Fee $10 per batch of factored invoices Funds Transfer Charges: Choice of: Wire fee $30 Overnight check fee $25 Other Charges: Early termination fee $15 per day for each day remaining in the current term after notice of termination. Free credit checks Check conversion penalty 20% of invoice or converted amount, whichever is larger