The service costs of an invoice discounter vary greatly depending on your needs. Costs are usually broken down as follows:

• Service Charge. A service charge is applied by the invoice discounter to cover their administrative costs. The value of this charge can vary greatly depending on what management costs are incurred. However, as sales ledger management is not need the costs are generally very low.
  
  
• Interest Charges. Interest charges are applied to the advances on the invoices you raise. The charges are usually a few percent above base rate.

However, if your company has a lower turnover e.g. £500k, then using a factor will avoid you having to employ someone to administer your receivables, performing such things as credit checks, invoice raising and credit insurance.

To get an invoice discounting quote click here.

To get an invoice factoring quote click here.

Invoice Discounting