Date Added: Jan 2010
Invoice factoring rates are the rates charged by invoice factoring companies for the services offered and cash advanced to businesses. Invoice factoring, otherwise called invoice discounting, is a business strategy by which a company's invoices or receivables can be signed off to an outside company, thereby securing immediate cash. Invoice factoring provides ready cash, which otherwise would be available only after a stipulated period. The service charge is usually a certain percentage of the sales factored and the service charge is calculated depending on the annual turnover of the company, the number of invoices and the number of customers.