The cost of factoring varies depending on the company you choose, so it’s a good idea to shop around for the best fit. Some factoring companies charge a flat fee per invoice, while others calculate a percentage fee based on factors such as your industry and your client’s creditworthiness. Typical factoring fees range between one and five percent, but this can vary from one company to another. Thoroughly reading your factoring agreement is crucial to avoid unexpected hidden fees and costs.