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Factoring Rates for Our Services

When we decide on the factoring rates for each of our services, we consider the following information when we price your deal:

  • Annual Sales Volume
  • Credit Worthiness of your clients
  • Average Invoice Size
  • Domestic or International
  • Payment Terms
  • A typical charge for a 30 day invoice will be 2% to 4%, 3% to 6% if the invoice is aged 60 days.

More importantly we want to charge you fair factoring fees and interest for our factoring services. Having been in business for 30 years we can proudly say that the reason why we have been in business for this long is because we have treated clients fairly over the years.

In addition J&D Financial uses the Prime Plus Method of factoring, not the Discount Method of factoring. The Prime Plus Method is used by larger financial services firms while the Discount Method is used by smaller factors. Usually the Prime Plus Method produces lower rates than the Discount Method.

When you talk to other factors about their factoring rates, find out how they are charging you for their services. Aside from that, ask if there are additional factoring charges if your receivable gets "old." J&D does not impose any additional fees if your receivable gets "old."

The Prime Plus Method only entails two fees. The first fee is a one-time fee per invoice called the factoring fee. Factoring fees are charged on the gross amount of the invoice. The second fee is the interest charge on the money advanced per invoice based on your advance rate. The interest charge begins on the day we advance your funds for that invoice. The interest charge is a percentage over the prime rate that has been agreed upon prior to signing our factoring agreement.


Prime Plus (J&D) Discount Method (not J&D)
Invoice Amount: $1000 $1000
Advance Rate: 80% 80%
Factor Fee: 3% 3% for first 30 Days
1% for every 10 days thereafter
Interest Rate: 12% APR No Interest Rate

What is the cost for a 45 day invoice for each method?

Prime Plus Method

  1. Factor fee is $30 ($1000 x 3% the Factoring Fee)
  2. Money Advanced $800 (1000 x 80% the advance rate)
  3. $800 x 12% APR. x 45 days = $12.00 is the interest charge for $800 borrowed for 45days at 12% APR
  4. Total Cost is $30 + $12 = $42 (Factoring Fee + Interest Charge)
  5. $42 / $1000 = 4.2% is charged on the gross amount of the invoice of $1000

Discount Method

  1. 3% for the first 30 days is = $1000 x 3% = $30
  2. 1% for the next 10 days is = $1000 x 1% = $10
  3. 1% for the next 5 days is = $1000 is 1% = $10
  4. The Total is $30 + $10 + 10 = $50
  5. $50 / $1000 = 5% is charged on the gross amount of the invoice of $1000

As you can see the Prime Plus Method in this case gives a lower total fee than the Discount Method, 4.2% vs 5%.

Wondering about what is factoring? To learn more about the services we provide, feel free to read through our FAQ or browse through our articles.