Cost of Factoring Examples
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Below, are examples of the cost of factoring facilities- the examples are indicative only* (we may be able to improve on them in some cases). To find out what the actual cost would be for your business please complete a FREE QUOTATION SEARCH REQUEST or call us on: 01892 784183.
Factoring Facility Cost Examples
Small Startup Business - £75,000 Sales Turnover Per Annum - Factoring (finance released £6,375 + credit control service)
- Service Charge - 2.67% of turnover = £2,000 + VAT per annum
- Discount Charge - 2% over bank base rate - £447 + VAT per annum
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Small Business - £250,000 Sales Turnover Per Annum - Factoring (finance released £21,250 + credit control service)
- Service Charge - 1.3% of turnover = £3,250 + VAT per annum
- Discount Charge - 2% over bank base rate - £1,488 + VAT per annum
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Medium Sized Business - £1,000,000 Sales Turnover Per Annum - Factoring (finance released £85,000 + credit control service)
- Service Charge - 0.7% of turnover = £7,000 + VAT per annum
- Discount Charge - 1.75% over bank base rate - £5,738 + VAT per annum
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Larger Business - £3,000,000 Sales Turnover Per Annum - Factoring (finance released £255,000 + credit control service)
- Service Charge - 0.35% of turnover = £10,500 + VAT per annum
- Discount Charge - 1.75% over bank base rate - £16,575 + VAT per annum
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Your Quotation
To find out what the actual cost would be for your business please complete a FREE QUOTATION SEARCH REQUEST or call us on: 01892 784183.
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*Notes about the indications above
The above examples assume the outstanding sales ledger to be 10% of turnover and funding of 85% of outstanding sales invoice to be provided. The examples use typical numbers of debtors and invoices and do not include ancilliary charges that may be incurred. Bank base rate is assumed to be 5%. An initial offer of 1% over base discount charge for the first 6 months may be available but has NOT been included in the above examples.
