Top 10 Questions to Ask When Looking for a Factor
Factor 5 Minimums & Requirements: $5,000 minimum monthly invoice volume; $250,000 maximum $250 minimum invoice size Minimum charge per invoice $5 No Minimum monthly discount total No term contract No Holdback Reserve minimum requirement Escrow Reserve 15% of credit line Rebates paid twice monthly Rebate payment = holdback sum collected Setup Fees: None Ongoing Rates & Charges: Advance: 70% of invoice amount Rebate deductions to Escrow Reserve 10% of rebate until escrow cap reached Discount rate: 5% every 30 days Funds Transfer Charges: Only method: Overnight check fee $25 Other Charges: Check conversion penalty 20% of invoice or converted amount, whichever is larger Credit check fee $25 per search Unfactored invoice processing fee $5 per payment Inactivity fee if no activity for 30 days 5% of minimum monthly invoice volume Missing notation fee* $20 per invoice *This is charged if a factored invoice omits the assignment notation and factor’s remittance address.