Factoring fees explained
Factoring fees may be stated as a flat fee, tiered fee, discount rate, daily rate, weekly rate, or monthly rate.
Key takeaways
- Factoring fees can be flat, tiered, daily, weekly, or monthly—the period matters as much as the rate.
- A quoted fee can mean different things depending on whether it applies to the invoice face value or the advance.
- Additional charges such as wire, minimum, and platform fees stack on top of the quoted factoring fee.
- Compare total cost over a realistic payment cycle, not just the headline rate.
Factoring fees can be stated as flat, tiered, daily, weekly, monthly, or discount charges. The same quoted number can mean different things depending on the time period.
Compare fee period, invoice amount, advance amount, reserve release, minimum charges, and add-on fees before comparing providers.
Fee formats
| Format | What to ask |
| Flat fee | Does it change if the customer pays late? |
| Tiered fee | What day starts the next tier? |
| Daily rate | Is it based on invoice face value or advance? |
Related reading
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.
- Uniform Commercial Code Article 9 - Uniform Law Commission. Accessed 2026-05-19.
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.