![]() The options described above represent the most common factoring agreements. Here is a Factoring Flat Discount and PRIME plus Margin Calculator for you to input your numbers and see how this rate structure works. We use a Prime Rate of 4.25% in this example. ![]() NOTE: Prime rate is the short-term interest rate (annual) used in the US banking system. The flat discount for 60 days would be $100*2.00% = $2.00 The part of your fee based on prime plus margin would then be: $80 x 0.017% x 60 days = $0.84 This calculated on the amount advanced, not on the gross invoice amount so we need to calculate your advance. Your $100 invoice, if it’s paid in 60 days, will pay the following fees:
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