What Is A Collect Out Fee?
A collect out fee is a fee that can be charged to Invoice Finance customer if they go into a formal insolvency. This may be charged if you are using Invoice Factoring or Discounting and you enter into a:
- Company Voluntary Arrangement
- Compulsory Liquidation
- Creditors’ Voluntary Liquidation
Its a contractual fee that may be levied by the invoice financier to cover any costs in collecting the sales ledger.« Back to Glossary Index