![]() Although the accounts receivable financing process is standard, there are some industries that require factoring expertise. In addition to finding a factoring partner who will work with you and provide exceptional customer service, you also want to make sure the factoring company provides factoring services in your industry. Rates are usually negotiable so don’t be afraid to ask for a lower rate. The factoring rates should be transparent and easy to understand. Weekly or daily rates get increasingly expensive as your collections days increase. Flat fees are usually best if your invoices are outstanding for a relatively long period of time. Others charge a flat one-time fee, no matter the number of collection days outstanding. Some factoring companies calculate factoring costs on a monthly, weekly or even daily basis. However, don’t be surprised if your rate changes later due to incorrect or additional information obtained during the application and approval process. They should at least give you a ballpark estimate before you must complete an application. ![]() Most factoring companies can give you a good idea of your cost.
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