Invoice Factoring Fine Print and Fees
Whether you’re buying a house, a car, or entering any other type of contract, it’s always important to understand the small print. There are fees (ACH, application, and processing, for example) associated with financing invoices, as well as other aspects of the industry, such as penalties, advance rates, and reserve requirements that can land you and your business in hot water if you don’t fully comprehend or abide by them. Be sure to compare and contrast proposals, as some invoice factoring companies might not be offering you the best deal upon second glance if there are ‘additional costs’ hidden throughout the contract. If you aren’t sure or have stipulations you’d like to propose–ask and negotiate! Always make sure you get everything discussed in writing–there are no assumptions in any successful business transaction.