Invoice factoring rates for manufacturers
1% to 3.5% per 30 days outstanding, on advances of 80% to 95% of invoice face value. That is the honest band across the factors we place with. Below is what decides where inside it you land, and every fee that sits on top.
Advance rate
80% to 95%
Of invoice face value, funded in days
Discount fee
1% to 3.5%
Per 30 days the invoice is outstanding
Time to first funding
3 to 10 days
24 to 48 hours per batch once live
These are directional ranges, not a quote. Your actual offer depends on your customers, credit, revenue, and industry, and is set by the funding institution during underwriting. Anyone promising a specific number before seeing your file is guessing.
The 4 pricing structures you will be quoted
Two offers at the same headline rate can cost very differently. Read the structure before the number.
| Structure | How it prices | Who it fits |
|---|---|---|
| Flat discount | One fee per 30-day period the invoice is outstanding, for example 2% per 30 days. | Predictable buyers on consistent net-30 or net-60 terms. Easiest to model. |
| Tiered discount | A fee that steps up at set aging intervals, for example 1.5% for days 1 to 30, then 0.75% per 15 days after. | Ledgers where most buyers pay early and a minority stretch. Cheaper if your aging is clean. |
| Prime plus margin | An interest rate on funds employed plus a small per-invoice administration fee. | Larger, bank-adjacent facilities. Usually the lowest all-in cost at real volume. |
| Spot or single invoice | A one-off fee on one invoice or one customer, with no ongoing commitment. | A single large order or a one-time gap. Prices highest because the factor gets no volume. |
What actually moves your rate
8 variables set your pricing. Several are inside your control before you ever apply.
Buyer credit quality
The single largest lever. Investment-grade and government buyers earn the best pricing and highest advances.
Monthly factored volume
Higher committed volume lowers the rate. Under roughly $50K per month you will sit near the top of the band.
Average invoice size
Fewer, larger invoices cost the factor less to administer than many small ones.
Days sales outstanding
Cost accrues by time. A 15-day improvement in buyer payment behavior can cut your factoring bill in half.
Concentration
One buyer at 60% or more of your ledger reduces advance rates or triggers a concentration limit.
Recourse vs non-recourse
Non-recourse adds credit protection for covered buyer insolvency and typically costs more.
Industry and delivery proof
Clean proof of delivery and undisputed invoices verify fast. Progress billing and consignment do not.
Term commitment
A 12-month or 24-month agreement prices better than month-to-month, but check the termination terms.
Fees to ask about before you sign
- Setup, due diligence, or application fee, and whether it is refundable.
- UCC filing and search costs, and who pays for termination filings later.
- Wire and ACH fees per funding, which add up on high invoice counts.
- Monthly minimum volume fees when your ledger dips in a slow quarter.
- Misdirected payment fees if a buyer pays you instead of the lockbox.
- Termination and early exit terms, including the notice window and any tail period.
Factoring rate FAQs
For US manufacturers with commercial or government buyers, 1% to 3.5% per 30 days outstanding is the directional band, on advances of 80% to 95%. Larger monthly volume, larger average invoice size, and stronger buyer credit push you toward the low end. Small ledgers, spot deals, and weak buyers push you toward the high end.
Factoring is a transaction-based sale of a receivable, not a loan with an annual term. The fee only accrues while the invoice is outstanding. Annualizing a 2% per 30 days fee to 24% overstates the cost when your buyers pay in 30 days, and understates the risk when they pay in 90.
Depending on the institution: a one-time setup or due diligence fee, UCC filing costs, wire or ACH fees per funding, a monthly minimum volume fee, and misdirected-payment fees when a buyer pays you instead of the lockbox. Ask for the full fee schedule in writing before signing. We review it with you.
No. These ranges are published so you can sanity-check what you hear elsewhere. Your actual advance rate and fee are set by the funding institution during underwriting, after they review your customers, credit, revenue, industry, and invoice profile.
Monthly, alongside our Funding Brief. When the bands move, we update the page and note the change in the brief.
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