- 16 Feb
Detailed Breakdown Of Cost Of Factoring Estimate Expectations
The details of our research results into what percentage of turnover customers expect to pay for factoring (their estimates of the costs) are as follows:
- 3% of SMEs expected to pay 10% of turnover
- 64% of SMEs expected to pay 5% of turnover
- 10% of SMEs expected to pay 2% of turnover
- 23% of SMEs expected to pay 1% of turnover
The actual cost will vary between businesses but the majority of respondents have estimated the cost of factoring to be 5% or more, which may be an over estimate in many cases. The only way to know for sure is to get some factoring quotations but, based on these results, in many cases a good factoring broker will be able to exceed expectations by finding cheaper factoring quotations than businesses expect.