What is a Refactoring Fee?
If you take out an Invoice Factoring or Discounting finance facility, you may be charged a Refactoring Fee. This fee is normally only charged if you have any unpaid customer invoices, that have gone over an agreed approval period.
Each lender will state their own terms relating to Refactoring Fees, so you need to check this when taking out an Invoice Finance facility. However the period is often 90 days from raising the invoice and is often the same charge as the service fee/charge.
In most cases if all your invoices are paid on time, you will not pay this fee.
Click here to read more about Invoice Factoring
Click here to read more about Invoice Discounting.
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