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What are the costs associated with invoice finance?

Invoice finance agreements will be priced based on your business and requirements, however invoice discounting and invoice factoring have different fee structures.Financial Services and Markets Act 2000, and aims to protect customers of financial firms when the firms can’t fulfil their obligations, or when they go out of business, because of illiquidity or insolvency.

Invoice discounting is structured like a loan, with interest payable plus an administration fee.the scheme’s website

Invoice factoring charges are known as a ‘factor rate’, which is based on level of risk, volume of invoices, and the time credit is extended for, amongst other factors.

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