![]() Some factoring companies charge a flat fee for the service, whereas others may have a factoring fee and additional charges for other administrative and support services they provide. Inquire today to see how much we can advance you.Ī factoring company’s fees vary based on items such as volume, the size of your invoices, your industry, customer pay trends, and other variables. TCI Business Capital offers competitive advance rates. ![]() The amount advanced is based on variables such as your customers’ creditworthiness, pay trends, and volume. In most cases, an invoice factoring company, would advance you anywhere from 70 percent and up of the invoice amount. By committing to factoring a specific volume of invoices, a company can receive the maximum advances and lowest rates to optimize their cash needs. Most agreements will include a volume commitment. Be sure to ask your potential factoring company questions and read through the contract thoroughly prior to signing. At TCI Business Capital, we offer month-to-month contracts and 12 month contracts depending on the situation. The term of the contract varies depending on your program. The agreement is the contract between the client and the factoring company. All About Factoring AgreementsĪt the foundation of a relationship with an invoice factoring company is the factoring agreement. ![]() This is one of the many benefits of factoring for companies that might not qualify for traditional lending or don’t want to increase their debt. The eligibility is based on the credit and payment history of a business’s customers, not that of the business itself. Factoring is not a loan, so there is no debt created by it. Invoice factoring supplies companies the immediate cash they need to not only operate their business but also to grow.
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