What Are Factoring Rates… and What Will They Cost You?
An invoice factoring rateis the discount rateapplied to invoices when a company sells them to a factor — a process known as receivable factoring. It reflects the cost of turning your unpaid invoicesinto immediate cash flow.
Historical Factoring Rates
Displayed below is our up-to-date list of daily invoice factoring ratesfrom the past 90 days, refreshed daily for accuracy. (*)
Date: 09/18/2025, Rate: 0.031%
Date: 09/17/2025, Rate: 0.032%
Date: 09/16/2025, Rate: 0.032%
Date: 09/15/2025, Rate: 0.032%
Date: 09/12/2025, Rate: 0.032%
Date: 09/11/2025, Rate: 0.032%
Date: 09/10/2025, Rate: 0.032%
Date: 09/09/2025, Rate: 0.032%
Date: 09/08/2025, Rate: 0.032%
Date: 09/05/2025, Rate: 0.032%
Date: 09/04/2025, Rate: 0.032%
Date: 09/03/2025, Rate: 0.032%
Date: 09/02/2025, Rate: 0.032%
Date: 08/29/2025, Rate: 0.032%
Date: 08/28/2025, Rate: 0.032%
Date: 08/27/2025, Rate: 0.032%
Date: 08/26/2025, Rate: 0.032%
Date: 08/25/2025, Rate: 0.032%
Date: 08/22/2025, Rate: 0.032%
Date: 08/21/2025, Rate: 0.031%
Date: 08/20/2025, Rate: 0.031%
Date: 08/19/2025, Rate: 0.031%
Date: 08/18/2025, Rate: 0.032%
Date: 08/15/2025, Rate: 0.032%
Date: 08/14/2025, Rate: 0.032%
Date: 08/13/2025, Rate: 0.031%
Date: 08/12/2025, Rate: 0.032%
Date: 08/11/2025, Rate: 0.032%
Date: 08/08/2025, Rate: 0.032%
Date: 08/07/2025, Rate: 0.032%
Date: 08/06/2025, Rate: 0.032%
Date: 08/05/2025, Rate: 0.032%
Date: 08/04/2025, Rate: 0.031%
Date: 08/01/2025, Rate: 0.032%
Date: 07/31/2025, Rate: 0.032%
Date: 07/30/2025, Rate: 0.031%
Date: 07/29/2025, Rate: 0.032%
Date: 07/28/2025, Rate: 0.032%
Date: 07/25/2025, Rate: 0.032%
Date: 07/24/2025, Rate: 0.031%
Date: 07/23/2025, Rate: 0.031%
Date: 07/22/2025, Rate: 0.031%
Date: 07/21/2025, Rate: 0.031%
Date: 07/18/2025, Rate: 0.031%
Date: 07/17/2025, Rate: 0.032%
Date: 07/16/2025, Rate: 0.032%
Date: 07/15/2025, Rate: 0.032%
Date: 07/14/2025, Rate: 0.031%
Date: 07/11/2025, Rate: 0.031%
Date: 07/10/2025, Rate: 0.031%
Date: 07/09/2025, Rate: 0.031%
Date: 07/08/2025, Rate: 0.032%
Date: 07/07/2025, Rate: 0.031%
Date: 07/03/2025, Rate: 0.032%
Date: 07/02/2025, Rate: 0.032%
Date: 07/01/2025, Rate: 0.032%
Date: 06/30/2025, Rate: 0.032%
Date: 06/27/2025, Rate: 0.032%
Date: 06/26/2025, Rate: 0.032%
Date: 06/25/2025, Rate: 0.032%
Date: 06/24/2025, Rate: 0.031%
Date: 06/23/2025, Rate: 0.031%
Date: 06/20/2025, Rate: 0.031%
Date: 06/18/2025, Rate: 0.031%
Date: 06/17/2025, Rate: 0.031%
Date: 06/16/2025, Rate: 0.031%
Date: 06/13/2025, Rate: 0.031%
Date: 06/12/2025, Rate: 0.031%
Date: 06/11/2025, Rate: 0.031%
Date: 06/10/2025, Rate: 0.031%
Date: 06/09/2025, Rate: 0.031%
Date: 06/06/2025, Rate: 0.031%
Date: 06/05/2025, Rate: 0.031%
Date: 06/04/2025, Rate: 0.031%
Date: 06/03/2025, Rate: 0.031%
Date: 06/02/2025, Rate: 0.032%
Date: 05/30/2025, Rate: 0.032%
Date: 05/29/2025, Rate: 0.031%
Date: 05/28/2025, Rate: 0.031%
Date: 05/27/2025, Rate: 0.031%
Date: 05/23/2025, Rate: 0.031%
Date: 05/22/2025, Rate: 0.031%
Date: 05/21/2025, Rate: 0.031%
Date: 05/20/2025, Rate: 0.031%
Date: 05/19/2025, Rate: 0.031%
Date: 05/16/2025, Rate: 0.031%
Date: 05/15/2025, Rate: 0.031%
Date: 05/14/2025, Rate: 0.031%
Date: 05/13/2025, Rate: 0.031%
Date: 05/12/2025, Rate: 0.031%
What Impacts the Invoice Factoring Rate That Your Company Can Get?
When applying for invoice factoring, several key factors influence the cost of invoice financing. Understanding these elements of factoring feescan help you weigh invoice factoring costcomparisons and qualify for the most competitive pricing.
1. Contract Length
Factoring ratesare often lower for businesses that commit to a longer-term agreement (e.g., 12 months). Shorter contracts may have higher ratesand cost of factoringdue to increased risk (lower volume or revenue) for the invoice factoring company.
2. Monthly Factored Volume
Businesses with a higher monthly volume of invoices(e.g., $500,000 or more) typically receive better rates based on their sales volume. If your monthly volume is lower, you may see slightly higher fees.
3. Creditworthiness of Your Customers
The financial strength of your customers (debtors) plays a significant role in determining your rate. Factoring companiesperform a credit checkto assess credit scoreand credit history, and tend to prefer debtors with strong credit ratings(e.g., rated by agencies like Dun & Bradstreet). If your customers have weaker credit, your rate may be adjusted accordingly.
4. Customer Concentration
A diversified customer base helps reduce the risk associated with your accounts receivableand outstanding invoices. Your rate may be higher if many of your invoices come from just one or two customers. For example, if one customer represents more than 20% of your invoices, the risk increases, potentially leading to higher costs.
5. Invoice Payment Terms
Factoring companiesoffer better rates for businesses with shorter payment terms. For instance, invoices with Net 30 payment termswill typically receive lower ratesthan those with Net 60 or longer terms, as extended payment cycles increase financial risk related to invoice valuesand invoice amounts.
What Hidden Fees Might Apply In Determining Invoice Factoring Cost?
Different fee structuresexist within invoice factoring agreements, impacting the overall cost of factoring. When evaluating options from various invoice factoring companies, it’s important to understand the true cost.
These primary invoice factoring feesare generally categorized as follows:
- Flat fee. Some factors charge a fixed percentage of the total invoice value, applied regardless of how quickly your customer pays. This provides predictable costing but might be less advantageous if your customers typically pay promptly.
- Variable rates (tiered rates). This is a common rate structurein which the factoring feeincreases over time while the invoice remains unpaid. For example, a rate might be 1% for the first 30 days, then increase by a certain percentage every subsequent week or two. This structure incentivizes quicker collections.
Beyond the primary service fees, several other additional feesmay impact the total cost of invoice factoring:
- Application fees.Although not standard in the factoring industry, some providers may assess a one-time, upfrontapplication or account setup fee.
- Service fees.These periodic fees cover administrative costs, invoice processing, and account management.
- Termination fees.Some charges are incurred if you end your factoring agreementbefore the agreed-upon term.
- Credit checkfees.You may be charged for the factor to assess the creditworthiness of your customers.
- Transaction fees.The cost of invoice factoringmay also include charges for transferring funds to your business, such as ACH(Automated Clearing House) or wire transfer fees.
How To Get the Best Invoice Factoring Ratefor Your Business
Whether you’re new to factoring or looking to improve your current terms, a few strategic moves can make a big difference:
- Factor higher invoice volumes to qualify for better pricingand improve your working capital.
- Work with strong, creditworthycustomers to reduce risk, demonstrating that you serve reliable business owners.
- Diversify your customer base so no single client dominates your revenue, mitigating issues related to customer concentration.
- Maintain shorter payment terms, such as Net 30 instead of Net 60, which can lead to a more attractive flat feeor flat rate.
Meeting these criteria and understanding the nuances of factoring company chargeswill maximize your chances of receiving the most competitive factoring ratepossible. Contact us today to learn more about optimizing your factoring agreementand exploring various fee structures.
Unlock Faster Cash Flow
Gateway Commercial Financeoffers flexible factoring serviceswith lines up to $10 million, helping your large or small businessimprove liquidity and stay focused on growth. Take control of your cash flowand invoice financingtoday — request your custom factoring quote nowand discover how our competitive rates and fast financing optionscan drive your business forward!
(*)Disclaimer: The advertised daily rate is based on a twelve-month agreement, with minimum monthly purchases of $700,000 from Dun & Bradstreet-rated account debtors holding a 5A3 rating or higher. Debtor concentration must not exceed 15%, and net sales terms cannot exceed Net 30. Final underwriting of the applicant company, its owners/officers/guarantors, and account debtors will be a key factor in any written offer, and the results may influence the terms of any written offer.