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How do you calculate receivables factoring?

The factors fees will usually be calculated as a percentage of the value of the invoice that has been sold to them by a business, around 0.5 to 5%.

This amount will be deducted from the second instalment of cash that is paid to the business once the factor has received full payment of the invoice.

The first instalment is the advance received by the borrower straight away, around 80% of the invoices value.