• 21 Feb

    Detailed Breakdown Of Cost Of Invoice Discounting Estimate Expectations

    Following on from my previous post about factoring costs, below are the details of our research results into what percentage of turnover customers expect to pay for invoice discounting (their estimates of the costs) are as follows:

    • 3% of SMEs expected to pay 5.0% of turnover
    • 64% of SMEs expected to pay 2.5% of turnover
    • 10% of SMEs expected to pay 1.0% of turnover
    • 23% of SMEs expected to pay 0.5% of turnover

    The most noticable thing that jumps out from these numbers is that every respondent estimate the cost of invoice discounting to be half the cost of factoring. This may not always be the case, our experience is that invoice discounting often costs more than 50% of the cost of factoring (although not always) which can make the added benefits of factoing e.g. an included credit control service, attractive as it can mean that a business using factoring doesn't need to employ any credit controllers.

    By Glenn Blackman

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Examples of funders we work with:

ultimate finance group
berkeley
metro bank sme finance
nucleus
ifg
inksmoor