The details of our research results into what percentage of turnover customers expect to pay for factoring (their estimates of the costs) are as follows:
- 3% of SMEs expected to pay 10% of turnover
- 64% of SMEs expected to pay 5% of turnover
- 10% of SMEs expected to pay 2% of turnover
- 23% of SMEs expected to pay 1% of turnover
The actual cost will vary between businesses but the majority of respondents have estimated the cost of factoring to be 5% or more, which may be an over estimate in many cases. The only way to know for sure is to get some factoring quotations but, based on these results, in many cases a good factoring broker will be able to exceed expectations by finding cheaper factoring quotations than businesses expect.