Discount fee

The factoring charge, usually a percentage of the invoice, covering the factor cost.

Why it matters

The discount fee is the core cost of factoring. It may accrue daily or apply in flat tiers. Comparing fee structures requires understanding both the rate and the timing.

Related terms

Related article: What is invoice factoring?

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.