The cost for this service is not passed on to the client. AFC's clients would receive no better rates or terms if dealing directly with the factor. As a matter of fact, in most cases, we negotiate, on behalf of our clients, even better rates and terms than they have otherwise received. But there are exceptions in both directions. After the first 30 days, the fee for additional days until payment is made is pro-rated.
Different factors have slightly different requirements and procedures.
In most cases, the client continues to mail out invoices to its customers but also faxes a copy to the factor. Some factors prefer to receive the original invoices and mail them out themselves. AFC recommends avoiding those that do request any type of up-front fee. A few factors charge no due diligence fee at all. Others agree to take their due diligence fee from the first funding.