What does Factoring cost?

The cost will vary depending on an number of factors including your turnover, the number of customers you have, how many Invoices you issue each month and what the level of returns/Credit Notes, etc is.

As a guide, a typical cost includes a Service Charge of 0.5 to 2% of turnover, including VAT and a borrowing cost of 2% to 4% over bank base rate.

Bad debt protection will add 0.3%-0.5% to the Service Charge.

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