• 14 Jan

    SMEs Often Over Estimate And Expect To Pay 4% Of Turnover For Factoring

    In order to better understand client's expectations regarding the price of factoring we questioned a random sample of 100 SMEs about the cost of factoring. We asked them what percentage of their turnover they would expect to pay for factoring. The average value they gave was 3.93% i.e. a fraction under 4%.

    In some cases though the price of factoring can be way below this estimate, maybe between 1 and 2% of turnover which suggests that expectations are that the cost of factoring is going to be more expensive than it is likely to be in practice.

    By Glenn Blackman

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