Factoring Pricing: Simple, Transparent Rates
One flat factoring fee. No application charges. No origination costs. No exit penalties. IFXI publishes volume-tiered rates so you always know your cost before you advance a single dollar.
Executive Summary: Understanding Factoring Costs
Monthly volume: The single biggest rate driver is how much AR you factor per month. Businesses factoring $250K+/month regularly qualify for rates at the low end of the range. Volume above $1M/month unlocks institutional rate tiers.
Client credit profiles: IFXI underwrites your commercial customers, not you. Invoices from Fortune 500 companies, government agencies, and large commercial entities earn higher advance rates and lower factoring fees than invoices from smaller or newer commercial buyers.
Invoice payment terms: A net-30 invoice costs less to factor than a net-90 invoice because IFXI holds the advance for less time. Longer payment terms increase the per-period cost. The fee is assessed per period (typically 30 days), so shorter cycles reduce total cost.
Volume-Based Factoring Rate Schedules
| Monthly AR Volume | Advance Rate Range | Factoring Fee Range | Best For |
|---|---|---|---|
| $50K – $100K | 80%–88% | 2.5%–3% per 30 days | Startups, new authorities, first-year B2B businesses |
| $100K – $250K | 85%–92% | 1.75%–2.5% per 30 days | Growing B2B service companies, small fleets |
| $250K – $1M | 88%–93% | 1.25%–2% per 30 days | Mid-size staffing, freight operators, contractors |
| $1M+ | 90%–95% | 1%–1.5% per 30 days | High-volume operators, enterprise staffing, large fleets |
Rates shown are indicative ranges. Actual rates depend on industry, debtor credit quality, and payment terms. Submit your details for a custom rate quote.
Real-World Factoring Cost Examples
Scenario A — $10,000 Invoice, Net-30, 2% Fee
Net cost: $200 on a $10,000 invoice — equivalent to 2% of face value for 24-hour access to $9,000 that would otherwise arrive in 30 days.
Scenario B — $50,000 Invoice, Net-45, 1.75% Fee
Net cost: $875 on a $50,000 invoice — 1.75% of face value for immediate access to $46,000 that would otherwise arrive in 45 days.
The IFXI Fee Transparency Guarantee
✓ What IFXI Charges
- ✓Factoring fee: 1%–3% of invoice face value — disclosed before every advance
- ✓Wire fee: Standard bank wire fees may apply (typically $15–$25) — disclosed upfront
- ✓Nothing else. That is the complete cost structure.
✗ What Competitor Contracts Often Hide
- ✗Application or setup fees ($250–$500)
- ✗Monthly minimum volume penalties
- ✗ACH or wire surcharges per disbursement
- ✗Termination fees for ending the relationship
- ✗Annual renewal fees or account maintenance charges
- ✗Audit or field examination fees
Frequently Asked Pricing Questions
The factoring fee is calculated as a percentage of the invoice face value — typically 1%–3% per 30-day period. For example, a 2% fee on a $10,000 invoice equals $200. The fee is deducted from the reserve when your customer pays IFXI. It is not an APR — it is a flat percentage of the specific invoice being factored.
The short answer is no — IFXI does not impose hidden monthly minimum volume penalties. Some factoring contracts include clauses requiring you to factor a minimum dollar amount per month or pay a penalty fee for the shortfall. IFXI does not include these provisions. You factor what you need, when you need it.
A recourse fee is not a separate line-item charge — it refers to the buyback obligation that applies if a customer defaults on a factored invoice under a recourse program. Under recourse factoring, you are required to repurchase the non-paying invoice at face value. Non-recourse programs shift this credit risk to IFXI at a slightly higher factoring rate (typically 0.5%–1% more per period).
The short answer is yes — some factoring programs calculate fees pro-rata based on the actual number of days the advance was outstanding rather than a full 30-day period. Under a pro-rata structure, a $10,000 invoice paid in 15 days at a 2% monthly rate would cost approximately 1% ($100) rather than the full 2% ($200). IFXI discloses fee calculation methodology at account setup.
The short answer is no — IFXI does not charge a termination or exit fee. There are no minimum contract terms, no multi-year commitments, and no penalties for reducing your factoring volume or ending the relationship. You are free to stop factoring at any time after fulfilling any outstanding advance obligations.
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