Skip to the content

Procurement Market Intelligence Report

Invoice Factoring
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Invoice Factoring?

What is the average price of Invoice Factoring?

This procurement report includes pricing information to help you purchase Invoice Factoring. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Invoice Factoring been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Invoice Factoring yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Invoice Factoring?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Invoice Factoring with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration in the invoice factoring market is low, with the top four providers generating less than 30.0% of revenue. About 585 vendors operate in the market, including both specialized and diversified providers. Diversified providers, like Wells Fargo, tend to be larger and control a greater share of the... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?


How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?


How long have you been operating in the invoice factoring market?

How much experience do you have working with clients in our market or sector?

Have you encountered any challenges with providing invoice factoring to clients in our market and what have you done to overcome them?

Do you have references from previous clients?

Amidst widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Discount Rate, Advance Rate & Reserve

What criteria do you use for calculating discount rates for different clients?

Are there any additional fees that the discount rate does not cover?

Are there cancellation fees that will increase costs beyond the discount rate?

How do you calculate the advance rate and reserve for different clients?

How long does it take for you to deliver the funds from clients’ invoice sales?

Financial Health

What is the maximum value of accounts receivable that you will factor?

What is the average value of the accounts receivable that you purchase from clients?

How do you generate the funds necessary for purchasing invoices?

How much debt does your company carry and how do you mitigate the threat of bankruptcy?

Has your company ever not been able to pay a client's reserve balance due to financial hardship?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

Customer Service

Do you provide 24/7 customer support?

How quickly do you respond to client inquiries on average?

Do you assign dedicated account managers to each of your clients?

What is your retention rate for your clients and how many choose spot factoring over signing a long-term contract?

Privacy & Confidentiality

What will you do to protect the private or confidential information in our schedule of accounts?

Have you ever had any data breaches that compromised client information?

If you have had a data breach in the past, how did you respond to it and how have you improved your security?

If there is a data breach, do you contact my company’s clients listed in the schedule of accounts directly? If so, how do you ensure that you do not disrupt our relationship with our clients?


How do you attract and retain clients for your business?

What do you do to set your services apart from those of your competitors?

How do you compete with new entrants into the market, particularly online providers with wide distribution networks, so that you maintain your market share?

How does your client base help you compete in this market and how does it compare to the client bases of your closest competitors?

“Sending out RFPs used to be a nightmare”

Let’s chat about how procurement market intelligence can reduce 
the time you spend issuing RFPs.

Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should indicate the value of the contract, if possible.

Buyers should specify which services they expect to be included in the service agreement and which services they will pay additional fees for.

Buyers should reference the Benchmark Price section of this report to confirm that they are paying a competitive rate for market services.

Selection Criteria

Buyers should evaluate providers based on the advance rate and reserve they offer.

Buyers should consider the level of service vendors offer.

Buyers should evaluate providers based on their payment timelines.

Buyers should consider the contract terms that providers offer.

Buyers should reference the Buying-Decision Scorecard section of this report for a detailed discussion of selection criteria to consider during the purchasing process.

Project Schedule

Buyers should indicate the due date for proposals.

Buyers should say when contract awards will be announced.

Buyers should state when services must begin.

Buyers should specify any preferences they have regarding contract length.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Providers in the invoice factoring market have faced moderate supply chain risk in the three years to 2020. This level of risk indicates that providers have a heightened chance of encountering supply chain disruptions, which could increase their expenses or prevent them from delivering services. Moderate supply chain risk may,... Subscribe to learn more.