Top 10 Questions to Ask When Looking for a Factor
Factor 6 Minimums & Requirements: No minimum monthly invoice volume; $100,000 maximum No minimum invoice size Minimum charge per invoice $10 No Minimum monthly discount total No term contract No Holdback Reserve minimum requirement Escrow Reserve 10% of credit line Rebates paid weekly Rebate payment = holdback sum collected Setup Fees: None Ongoing Rates & Charges: Advance: 80% of invoice amount Advance deductions to Escrow Reserve 5% until escrow cap reached Discount rate: 1% every 7 days Funds Transfer Charges: Choice of: ACH fee $0 Wire fee $15 Other Charges: Check conversion penalty 15% of invoice or converted amount, whichever is larger Free credit checks Unfactored invoice processing fee $10 per payment