Before your commission structure is agreed it does depend on how much business you pass, are you dealing with any other funders and to an extent how good a negotiator you are? Do Invoice Factoring Companies All Make the Same? There are different commission structures for different aspects of Invoice Finance, so for the purpose of this Factoring Blog let’s just focus on Factoring & Invoice Discounting for businesses that have a turnover of £300K plus.
once your customer has paid the invoice.Īs a broker we would make our commission against the service fee element of your agreement, however throughout the industry there isn’t a standard commission structure. Once you have then received your IP (Initial Payment) you will be charged a discount charge (which in all intensive purposes is an interest rate) for the outstanding balance paid to you until your invoice has been settled I.E.
#Invoice factoring companies near me full
Basically Factoring is a product which releases a percentage of cash tied up in your unpaid invoices, so once you have raised an invoice you will get charged a service fee against the full outstanding balance of your invoice. If you have ever taken out a factoring facility then you will be familiar with how the costing’s work, but for those of you reading this that are unfamiliar let me explain how the pricing structure works. Making this public and putting it on the World Wide Web will hopefully make dealing with invoice factoring companies a little more transparent. Here at Simply Factoring Brokers we like to be completely up front and honest and if this question does get asked we are always honest and tell the customer exactly what we get paid.
So we thought to write a Blog about how an introducer’s commission works once a deal has been placed. In the last 6 months the question of how much we get paid for passing the business certainly seems to be raising its head. How much do Invoice Factoring Companies Make?