The Cost of Factoring | Bottom Line Impact | PRN Funding
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Cost of Factoring

September 8, 2023
PRN Funding

For many businesses, factoring can greatly improve flexibility by providing steady cash flow despite the company’s clients being on net 30+ terms. If your business is considering factoring, but are unsure how the alternative funding practice could benefit you, you’ve come to the right place. Check out the real cost of factoring with PRN Funding, and its benefits, below.

What Can Factoring Do For You?

Steady cash flow enables your business to grow.  Increase revenues & increase profit.

Current Business After Factoring
Annual Sales $800,000 $1,200,000
Direct Labor (40%) $320,000 $480,000
Gross Margin $480,000 $720,000
Indirect Labor $80,000 $100,000
Overhead $80,000 $100,000
Cost of Factoring N/A $42,000
Net Profit $320,000 $478,000
Net Additional Income Made Possible Through
Accounts Receivable Factoring
= $158,000


What is the Cost of Factoring?

The factoring cost depends on several variables: industry standard, risk and size of the invoice are among just a few of them. If your business is interested in getting a free factoring quote or has questions about the process in general, give us a call.

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