Factoring Cost

The factoring costs are generally paid by the seller, but may vary based on the type of factoring service(s) received. In general terms, the factoring cost consists the financing fees and commissions 

Factoring commission

It is the fee collected as based on the agreed rate on receivables which are subject to receivables guarantee and/or receivables management services that are assigned by the factoring company. Although there are severable variables determining this rate, the criteria primarily the maturity of the receivables, the size of the risk and the annual transaction volume stand out. In international (export) factoring transactions there are additional determining criteria such as the country of the buyer, the number of invoices 

Factoring financing fee

It is the fee collected in return for the financing services offered by the factoring company. It is calculated as based on the priority criteria such as the current market conditions, annual transaction volume and the average maturity of the receivables.