When you See Low Factoring Fees Advertised, Be Wary

Look at any pay per click ad on Google or other search engines, and you'll likely see something like "factoring rates as low as 1% per month". Sound too good to be true? It probably is. Before you can't wait to submit your invoices to a company that advertises these "incredibly low rates", make sure either you or attorney review the contract very carefully.

First of all, the 1% may mean for the first thirty days only. You'll want to see what the rate will be for days 31-90. Chances are, those teaser rates that got you hooked will escalate dramatically.

There are often other charges buried in the contract you should be wary of:

• per invoice charges
• application fees
• administration charges
• renewal fees

In addition, you should determine exactly when the reserves will be released and ask if the invoices are bulk assigned. When comparing factoring companies, you should analyze all of these charges.

Click here for more information on OCF programs or to request a free quote or call (417) 849-7394.