Flat-rate pricing.
Some factors do not take time into
account, and charge a simple flat rate of the gross amount of the
invoice. In this case, the factor would charge you the same fee
whether your invoice was out for three, thirty or ninety days.
Block-time pricing.
Most other factors calculate
their fee based on blocks of time the invoice remains outstanding.
Typically, you would be charged one rate for the first thirty days,
and another rate for subsequent 10 to 15-day block periods. As in
the flat rate model, block time fees mean that an invoice out for 31
days would be charged the same as if it were out for 39 or more
days, and so on for each block of time.
Per-diem pricing.
This fee model
appropriates the fee based on actual days outstanding. In this case,
the fee would be calculated at a per day rate. The advantage of this
fee methodology is the elimination of "rounding up" a factor's
fee since the fee is directly proportional to the amount of time the
invoice remains outstanding.
