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How We Calculate Our Invoice Factoring Fees

| Staff |

At InvoiceInterchange, we help fast-track the money businesses are owed when they need it. Our invoice factoring solution is simple and transparent to our clients and therefore, our fee structure is also straightforward.  Before we get into the factoring fees details, let’s go through some common invoice factoring terminologies.

Invoice finance technical terms

Invoice face value

This is the total value of goods or services delivered to your customer displayed on the invoice document for which your customer owes and is to be paid.

Advance Rate

InvoiceInterchange advances up to 90% of the invoice face value.  This simply means, if your invoice face value is $10,000, we could advance up to $9,000 upfront so you don’t have to wait 30, 60, or 90 days to be paid.

Actual Term

At InvoiceInterchange, once the invoice payment is received from your customer, Discount Fee will stop accruing.  The actual term in days is calculated by the Settlement date minus the Drawdown date.

Anticipated Pay Date

For each trade (drawdown), there will be an Anticipated Pay Date assigned to it.  This is the likely date on which you foresee your customer paying the invoice (as customers do not typically pay an invoice on the exact invoice due date).

Calculating factoring fees

Our factoring fees are transparent and straightforward.  There are only 2 fees.

Transaction fee

A transaction fee is charged on each drawdown.  It is a fixed percentage against the invoice face value. 


Invoice face value$10,000
Transaction fee rate1%
Transaction fee= $10,000 * 1%= $100

Discount fee

The discount fee is calculated daily against the outstanding advance (drawdown) amount. 


Invoice face value$10,000
Advance rate80%
Actual term45 days
Discount rate (per 30 days)1%
Discount fee= $10,000 * 80% * 1% *45 / 30= $120

Invoice finance is a fast and flexible way to unlock funds owed to you in outstanding invoices. It rids gaps in cash flow and boosts your working capital when you need it.

To find out more about our invoice finance options, chat with one of our friendly team members.

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