![]() Are There Different Types of Factoring Rates? Additional things that might be considered by some companies are your credit score (as the business owner), how long you’ve been in business and your annual revenue. ![]() You’ll get a lower rate with a more diverse book of customers, especially if most of them have good credit.Įach of these factors can be broken down into more specific details which will impact your overall factoring rate. If you have several customers with smaller invoices every month, it’s often less risky for a factoring company than buying invoices frombusiness that only has two customers per month with very large invoices. ![]() The diversity of your customer portfolio is also considered when calculating risk. As such, non-recourse inevitably comes with a higher factoring rate. Non-recourse is when the factoring company takes on more risk of non-payment. For example, within factoring, there are two primary types of agreements – recourse and non-recourse.
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