Factoring Rates & Services

tailored programs with low rates

• No Set Up Fees

• Funds within 30-90 Minutes

• No Personal Credit Check Required

• Non-Recourse Factoring

• Same Day Reserve Release

• No Minimum Volume Requirement

• No Hidden Fees

• Factor What You Want

• 24 hr. Application Approval

• Online Account Access

• Knowledgeable, Friendly Staff

Cost saving services covered by UC Factors: 

• Credit Reporting

• Credit Analysis 

• Credit Protection on Factored Approved Accounts

• Invoice Billing Administrator  

• Collections on Factored Accounts

• A/R Management & Reporting

• Online Account Access 

Another cost saving service we give our clients is their account analyst’s reviewing their invoice’s and documentation to ensure all necessary paperwork is in place and accurate for your customer to remit payment without incident.  A few examples are, they will help ensure the billing address and/or email address is accurate, and current according to the documentation and our records, that the correct back up paperwork is attached to the appropriate invoice for billing, and that the pricing noted on the invoices has no discrepancies.  Any mistakes will be brought to your attention so you may fix them before your customer sees that a mistake was ever made.      

How much do you think all these services would cost you if you were to purchase them yourself?  You would also need to increase your staff to cover the administration portion of these services, which means payroll, workman’s comp, insurance, and paid time off. Something to think about when assessing the rate of a factoring company.      

There are several variables in quoting rates to a prospective account, so there is no one size fits all rate. 

How Rates work

Rates generally range from 1.00% to 4.0% per 30 days. Advances usually range from 70% to 85%. There are some exceptions, such as transportation and staffing, where advances can reach or exceed 90%.  

Example:

If a $ 2,000.00 factored invoice pays at 30 days, and your factoring fee is 2.5%, your factoring fee would be $50.00.    

Depending on the industry, services covered by factor, sales volume, credit worthiness of your debtors, and the administration involved, the fees will vary in range from 1%-10%. This is normally a scaled percentage based on days. A flat rate can be obtained in negotiations.  

“What is your rate?” One of the first question asked most times; though I feel it should be the last one asked.   Why, because once someone hears a rate, they don’t always take in to account what that rate (fees) covers. If they feel it’s too expensive, they move on to another company offering a lower teaser rate. Not all Factoring companies offer the same services and coverage, so you might think you are getting a better deal with one company, when in reality you are not, because they are not covering all the same services for that rate.  As a small business owner, you probably have been outbid by other companies offering what seems to be the same service or product, yet you know the service and/or product is inferior to yours. The same goes for Factoring Services; rates are based on service, coverage, and the knowledge and stability of the Factoring company. If you are getting a very low rate, you might also be getting a low quality of service and coverage. 

When the decision is made to work with a Factoring company, it important you compare them accurately and ask questions regarding any other fees not noted or brought up in initial sales process.  Time and time again, we talk to prospects who are not getting the rate they thought they were quoted.   

Apply now, get an honest, upfront, rate and service quote from UC Factors.  

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