Rates & Fees

Clear pricing built around your business

One of the first questions business owners ask is simple: “What does factoring cost?”

Factoring fees

How factoring fees are typically calculated

At Mōmentum, every fee structure is transparent and discussed upfront. No hidden fees. No surprise line items buried in fine print.

Most accounts receivable factoring structures include two primary components:

Advance Rate

This is the percentage of the invoice you receive upfront.

Advance rates typically range up to 90 percent of the invoice value, depending on:

  • Your industry
  • Your customers’ credit strength
  • Invoice size and frequency
  • Historical payment timelines

The stronger and more predictable the receivables, the stronger the advance structure.

Factoring vs. Other Financing Options

Built for growth, not just approval

Traditional banks prioritize history and risk. Mōmentum AR factoring is built around earned invoices, customer credit strength, and the timing realities of growing businesses.

Feature Traditional Bank Loan Merchant Cash Advance Mōmentum AR Factoring
Approval Basis Your credit and financial history for 2+ years Existing sales volume Primarily your customers credit strength
Time to Funding Months Often within days Often within days
Creates Debt Yes Yes, structured as an advance No traditional loan debt
Repayment Structure Fixed monthly payments Daily or weekly withdrawals No fixed payments, tied to invoices
Cost Structure Interest-based, hidden bank fees High cost Transparent factoring fee
Scales with Revenue Limited by credit line Limited, can restrict ongoing cash flow Grows as you invoice more
Flexibility Rigid covenants common Rigid, frequent withdrawals Built around your operation
Impact on Cash Flow Neutral to restrictive Can strain daily cash flow Improves cash flow timing
Accessibility for Startups Difficult Often accessible Easy to set up

The Mōmentum difference

When business owners compare invoice factoring to other financing options, they look beyond the percentage. They look at impact.

Access same day funding in many cases. Waiting on bank approvals or loan committees can cost opportunities that never return.

Our team of dedicated account executives work with you daily to provide fast and reliable support every step of the process. MCF is not a call center but a hometown lender in your corner.

Strong customers can support strong funding terms, even if your business is young or growing quickly.

As you invoice more, your funding capacity increases automatically. No reapplication process required.

We structure facilities that are clear and understandable. You should never need a magnifying glass to understand your cost of capital.

FAQs

Clear answers to common questions about invoice factoring rates, fees, approval, and how Mōmentum structures funding.

Accounts receivable factoring is when a business sells its outstanding invoices to a funding partner in exchange for immediate cash. Unlike traditional loans, approval is based primarily on your customers’ credit strength, not your financial history.
Here is how it works at a high level:

  • You perform a service or deliver a product.
  • You issue an invoice to your customer.
  • Mōmentum advances up to 90 percent of the invoice value.
  • When your customer pays, you receive the remaining balance, minus a transparent fee.

No.

Invoice factoring is not a loan and does not create traditional debt. There are no fixed monthly payments, no compounding interest, and no long-term repayment schedules.

Many clients are approved within days, and verified invoices can often be funded the same day. Timing depends on the customer, invoice details, and how quickly verification is completed.

Factoring may be a fit if:

  • You issue invoices to creditworthy commercial customers
  • You operate on 30 to 90 day payment terms
  • You need consistent working capital to support growth
  • You want flexibility without adding traditional debt

Many firms offer invoice factoring. Not all offer a partnership.
At Mōmentum, we take the time to understand:

  • How your cash cycle works
  • Who your customers are
  • Where you are headed
  • What growth looks like over the next 12 to 24 months

Because factoring isn’t one size fits all. Rates vary based on your specific situation, and a number online would be misleading without understanding:

  • Your customers
  • Your invoice volume
  • Your average days to payment
  • Your growth trajectory
  • The complexity of your contracts

Need Mōmentum for the road ahead?

You handle the hard work. We will provide the honest backing. Let us make sure your cash flow can move as fast as you do.

Speak with our team Start your application