Factoring interest rates are an essential part of invoice factoring, as it is how invoice factoring companies determine the cost of their services. Generally, invoice factoring companies calculate their rates based on two factors: the invoice amount and how much credit risk is involved. For example, a lower rate may be offered if the invoice amount is high and there’s no credit risk attached to the job; however, if the invoice amount is lower with more credit risk, a higher rate may be charged. Goodman Capital will break down each factor so that customers know exactly what they’re paying for.