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A/R Finance & Factoring Terms GLossary

What isFactoring Discount Fee or Factoring Rate

The Factoring Discount Fee or Factoring Rate is the cost to you for Invoice Factoring, A/R Management, and Credit Protection from Paragon. It is typically based on your monthly volume and creditworthiness of your Customers (the Account Debtors) and can range from .9-2.5% per thirty days and typically includes A/R Management and Credit Protection services at no additional charge at Paragon.

Be very careful when doing a factoring rates comparison as there can be line fees, non factored fees in addition to the factoring discount fee.

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