Your client keeps
$166,610
a year, after paying for the cover
Financing the receivables you already have, priced off the insurer behind them rather than your customers one by one.
Indicative only. Not a quote, not an offer of finance and not advice.
Two numbers decide whether a policy gets placed: what the client saves, and what you earn for introducing the capital. Both are here, per client and across the clients in your book who look like this one.
What you already earn from the carrier isn't counted here. That relationship doesn't change, and this doesn't touch it. The figures below are the capital introduction alone: a referred client who funds through the program pays you a trailing fee of 10 to 20 bps a year on their average outstanding funded balance, accrued on the daily or monthly average, not a one-off draw, and paid monthly or quarterly on that period's balance. It comes out of our spread, so it costs the client nothing and the insurer nothing. It runs for as long as the client's credit line stays live and stops if the balance goes to zero. No fixed term underneath it.
| Factoring today | Next quarterly window | Straight away | |
|---|---|---|---|
| Who gets credit-checked | Your company, and every customer, one by one | The insurer standing behind the invoice | The insurer standing behind the invoice |
| Cost, as a yearly rate | 19.1% | 8.1% to 9.1% | 9.6% to 10.6% |
| Cost in money, per year | $400,000 | $168,719 to $189,678 | $200,158 to $221,116 |
| Cash advanced against invoices | 85% | 80% to 90% | 80% to 90% |
| Credit insurance needed | No | Yes, existing or placed for you | Yes, existing or placed for you |
| When the money arrives | Per invoice, ongoing | At the next quarterly window | Immediately |
| Your customers and terms | Unchanged | Unchanged | Unchanged |
It shows how much is owed, how customers actually pay, and how sales are spread.
Your last factor or lender statement. Everything is measured against it.
The schedule and covered buyer list. Having no policy is normal. Placing one is part of the work.
What's owed to you. Sales on invoice ÷ 365 × average days to pay. It is a yearly average, so a seasonal business sits above it in busy months.
Cost, as a yearly rate. Fees paid in a year ÷ the cash actually out that year. It is the only fair way to compare "2% an invoice" with "9% a year".
The rate here. All-in and annualized, the program prices between 8% and 11% a year. The quarterly window sits in the lower half: it starts at 8.6% and moves for your largest customer, how much is owed, your payment terms and whether insurance is already in place. Funding straight away costs about 1.5 points more. Ranges, because the final number comes from an insurer and an investor.
How much you get up front. Modelled at 80 to 90% of what is owed, and settable by hand under the funding figure. Advances run against insured invoice value rather than turnover, so a supplier with a large insured contract from a much stronger buyer can be funded above its own annual revenue. The carrier's credit limit on that buyer is the cap.
Insurance premium. 0.25% of the sales that can be covered. That is a mid-market benchmark, not an insurer's quote. Where there is no policy we subtract it, so the saving shown is after paying for cover.
Not included. Legal set-up, wire and audit fees, minimum-volume charges, and any exit fee on an existing factoring agreement.
It works like factoring day to day and prices like something much bigger. Thirty minutes on your current facility is enough to know.