Illustrative
Compare the cost,
not the headline.
A 2% monthly fee is not a 2% annual rate. Compare what you receive, what you pay, and when.
Factoring
$4,000
2% per 30 days on $100,000 face value.
→
AR finance
$1,700
1% per 30 days on the advance.
→
Bank line
$978
7% APR, simple interest.
→
Wait
$0
No financing cost, paid at day 60.
→
Illustrative example for a $100,000 invoice paid after 60 days, 85% advance. Excludes other fees, recourse differences and timing. Not a lender quotation.