Austin Wells Funding Group
How Much Does Receivable Based Financing Cost?

There are no hidden or surprise fees.

As brokers, we are compensated by the funding sources, not by you.

A few funding sources require no up front costs for due diligence (the cost of lien searches performed by the UCC services and credit reporting agencies) or wiring funds (usually between $250 and $500).

For your convenience we try to match you with free funding sources first. The funding sources criteria and your invoices determine if a check of due diligence is required.

Others will need funds up front when your application is processed. If your receivables are pledged to a bank, the IRS, etc. then suitable arrangements are made and this also falls under the net of due diligence, however some funding sources do not charge for this service.

If due diligence is required, the normal rate for Corporations is usually $250 while due diligence for a Proprietorship is usually $500. Some funding sources also require $40 - $50 for each credit report. Others may also charge $15 for overnight/express mail.

As we stated previously, it only takes 5 - 7 business days to open your credit line and you may draw upon it as needed up to the established advance amount, typically 50% to 75% of the value of the accounts receivables (depending on the funder) placed in the credit line. Once your account is established, additional invoices will usually be verified and funded in 24 hours or less.

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The funding source pays for our service, not you.

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As your customers pay each invoice, the remaining 25% to 50% (the reserve) is paid to you after deducting the funding sources fees (usually between 4% to 5% for each 30 days.

If an invoice is paid within 30 days you receive 95% to 96% of the invoice total and the transaction is complete. As your broker it is up to us to advise you of ways to offset these charges and in some cases eliminate them completely. Please click on "Minimize the cost of this Service" when you have finished reading this page.

The fee schedule reflects industry conditions, the size of your advance and the credit worthiness of your customers. Lower fees are available for shorter time periods and small advances.

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To learn how to offset some of the cost click on the link below.