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Invoices paid in 30 days | Invoices paid after 30 days
Let us assume that you have a corporate customer that normally pays beyond 30 days after they invoice them and the invoice amount is $10,000.00. By factoring their accounts receivable, they can receive an advance in a matter of hours. Here is how the math works:
| Invoice Amount | $10,000.00 |
| 80% Advance | $ 8,000.00 |
| Less: Initial Financing Fee | $ 350.00 |
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| Amount Advanced to the client | $ 7,650.00 |
| Amount Held in Escrow * | $ 2,000.00 |
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* When the invoice is paid, factor will refund the amount held in escrow is refunded to the client. If the invoice goes beyond 30 days, an additional $175.00 fee would be charge for each 15 day period or any portion thereof the invoice is outstanding. These additional fees would be deducted from the amount held in escrow. |
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| Days out | Total fees | Escrow Amount Returned |
| 1-30 days | $350.00 | $2000.00 |
| 31-45 days | $525.00 | $1825.00 |
| 46-60 days | $700.00 | $1650.00 |
| 61-75 days | $875.00 | $1475.00 |
| 76-90 days | $1050.00 | $1300.00 |
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If an invoice goes beyond 90 days the client must repurchase that invoice. |
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