Factoring Fee
The fee a factoring company charges for advancing funds against an invoice, typically calculated as a percentage of the invoice value and often increasing the longer the invoice remains unpaid.
Factoring fees are commonly structured as a percentage per 30-day period the invoice remains outstanding, so a slow-paying customer can meaningfully increase the total cost compared to one that pays quickly.
Comparing factoring fees across providers, including how the fee escalates over time and whether it’s flat or tiered, is important for understanding the real cost of factoring a given invoice or ledger.
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