Factoring costs can range from 1-6% per month depending on the industry, your business sales volume and the creditworthiness of your customers.
Harper’s fees range from 1-3% per month with advance rates ranging from 70-90% of the gross invoice amount. As you develop a successful track record with us over time, your fees will be lowered and your advance rate increased.
For example, on a $100 invoice, the fee per month could be as low as $1. Assuming the invoice is outstanding for 60 days, the total fee for the cash advanced is $2.
Be careful about factoring fees calculated on a month-by0month basis, which certain factoring companies charge. For instance, an invoice outstanding for 31 days would be charged for 60 days (2 months) because it’s 1 day over 30 days. Harper Partners fees are calculated on a daily basis, so however long the invoice is outstanding (to the exact day) will determine the fee.