Profits of factoring companies mainly come from spreads. The spread of factoring is roughly 3%-4%. If the factoring company has a good background and competitiveness, it will get a higher spread. Financing interest is charged for accounts receivable financing according to the regulations of the People's Bank of China, and the interest rate is calculated according to the loan interest rate (including floating interest rate) for the same period. The specific factoring financing interest rate is determined according to the actual advance amount of factoring business and with reference to the current market interest rate level, and is clearly stipulated in the factoring service contract between the two parties. The annualized interest rate of factoring financing is generally 10%- 15%, the higher interest rate reaches 17%- 18%, and the lower interest rate may reach 8%-9%.
The factoring service commission includes the buyer's credit evaluation, accounts receivable collection and management. The rate depends on the nature of the transaction, the amount, the financing risk control and the specific content of providing services, and is generally 0. 1%-3% of the net accounts receivable. The specific rate is subject to the agreement in the factoring service contract signed by both parties.
Now the interest rate should be lower and the policy is favorable. Talk to the bank and see how big the enterprise is.
If the interest rate rises, banks will sometimes rise by 20%, and they will also charge some consulting fees and financing fees to raise interest rates.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.