The amount of the advance, reserve, and factoring fee can vary by industry, customer strength, and how long it takes the customer to pay the invoice.įactoring Express will not charge a set up fee to the business upon acceptance. $9,750 – Total Amount Received by Business.$ 750 – Balance of Reserve Paid to Business.– Fee Deducted from Reserve (Assumes 2.5%).

$ 1,000 – Reserve Held By Factor (Assumes 10%).$ 9,000 – Advance Rate Paid to Business (Assumes 90%).$10,000 – Invoice Amount Customer owes Business.Here is an example of how the numbers might work on a factoring transaction: Step 5 – We will release the reserve balance to your business less the factoring fee. Step 4 – Factoring Express receives payment on the invoice directly from your customer. Step 3 – We will provide an immediate advance on approved customers. Step 2 – Submit the invoice to the Factoring Express. Step 1 – Invoice your customer for services completed. Selling or factoring invoices is very straight forward with 5 main steps: There is no interest or loan fee charged as the process involves the assignment of an invoice rather than the creation of debt.

When the invoice is paid the reserve is released, less the factoring fee. We will issue the advance and keeps back a portion in reserve. Rather than wait for payment, your business can receive an immediate advance on the face amount of the invoice from Factoring Express. The average customer may wait 20, 30, or even more days, before paying the invoice. When your business delivers goods or services to a customer on terms an invoice is created. Rather than a bank loan, outstanding invoices are sold to a factoring company. When a business needs cash, they can turn to Invoice Factoring.

Freight invoice factoring