Factoring Agreement Hsbc

An in-house legal advisory team also tracks unpaid invoices at no additional cost when a client exceeds their credit limits. Service fees Invoice factoring companies charge a “service fee” to cover the costs of tracking and collecting invoices. This is usually calculated as a percentage of your company`s turnover, which varies between 0.75% and 2.5% depending on the size of the company. The higher your turnover, the lower the percentage (companies with lower turnover usually have the highest service fees, as they are considered riskier than those with higher turnover). Close Brothers offers factoring and discounting, with up to 90% of the value of approved invoices available.