Invoice factoring deals are priced by their size. The more commitment to utilize accounts receivable financing the lower the rates. Factoring companies characterize the deal by the monthly amount of invoices to be financed. Generally the tiers are; below $50K a month in invoices is a small start-up and the rates will probably be around 3 – 3.5%. Above $50K moving up to $150K can expect to see rates drop below the 3%. If the deal is around $250K invoices per month the rates drop to around 2%. Once the deal gets above this size, the rate structure changes to an asset based loan transaction. The fees become interest on funds in use. More like a standard line of credit. But the point is, the more volume in funding a factoring company can expect, the lower the actual cost to do invoice factoring.
The rates, or cost of accounts receivable factoring will not change from day to day. Once the relationship has started, the rates which have been negotiated, remain in place regardless of the amount of invoicing being funded each month.