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:

Bankruptcy
Company Voluntary Arrangement
Compulsory Liquidation
Creditors’ Voluntary Liquidation
Administration

Its a contractual fee that may be levied by the invoice financier to cover any costs in collecting the sales ledger.

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