Invoice Factoring
What are the Costs of Factoring My Invoices?
At Pulse Factoring, we offer some of the most competitive rates in the industry. There are no hidden fees or surprise charges—everything is transparent. You get to choose the factoring program that fits your business best, ensuring a solution tailored to your needs.
Factoring Fees
What are the Cost To Factor my Invoices?
When factoring an invoice with Pulse Factoring, we typically advance 80-90% of the invoice value upfront. For example, on a $100 invoice with a 90% advance, you’ll receive $90, and the remaining $10 is placed in reserve. After the invoice is paid, the reserve is returned minus our factoring fee.
Factoring Fee (the cost to factor)
Our rates start at a 2.25%, with an additional 0.75% added for every 10 days after the initial 30-day period:
Fee Breakdown:
| Days | Rate |
|---|---|
| 0-30 | + 2.25% |
| 30-40 | + 0.75% |
| 40-50 | + 0.75% |
| 50-60 | + 0.75% |
Direct Lending, No Hidden Fees
Pulse Factoring offers one of the most transparent fee structures in the industry, with no hidden fees or commissions. You select the program that fits your business needs best.
What Determines a Lower Rate?
The final rate is influenced by:
- Monthly invoice volume
- Number of customers factored
- Customer creditworthiness
- Average invoice value
- Customer payment terms
- Industry specifics
Tiered Fee FactoringÂÂ
For more flexibility, the tiered fee structure charges by 10 or 15-day blocks:
| Time Frame to Receive Payment | Factoring Fee |
|---|---|
| 10-Day Blocks | .75% – 1.6% |
| 20-Day Blocks | 1.5% – 3.2% |
Example:
If you have a 2.25% fixed rate for 30 days, and your customer pays between 30 and 40 days, your final factoring fee will be 3%. Unlike other factoring companies, our easy-to-understand tiered fee system eliminates all the hidden fees associated with late payments.
Factoring Example (Flat Fee)
Let’s look at an example based on a $100 invoice:
| Invoice Amount | $100.00 |
|---|---|
| Advance (90%) | $90.00 |
| Reserve (10%) | $10.00 |
| Invoice Paid on Day 25 | Reserve Returned: $8.00 |
| Factoring Fee (2%) | $2.00 |
| Total Collected | $98.00 |
In this scenario, you would receive $98, and Pulse Factoring would collect $2 as the factoring fee.
Avoid Hidden Fees
Some factoring companies advertise low rates but include hidden fees. At Pulse Factoring, we are transparent with all our costs, ensuring no surprises. Choose the program that aligns best with your business, and benefit from clear, straightforward pricing.
How Invoice Factoring Works
- Step 1: Sell Your Invoice
You sell your invoice to Pulse Factoring, allowing you to unlock the cash tied up in outstanding payments. - Step 2: Receive an Advance
Our factoring company advances you a percentage of your invoice amount, typically between 70-90%, providing you with immediate working capital. - Step 3: Customer Payment
Pulse Factoring then collects payment directly from your customer when the invoice is due. - Step 4: Receive Remaining Funds
After your customer pays, Pulse Factoring sends you the remaining invoice amount, minus their factoring fees.
