The headline rates for factoring fees seem to be reducing again as lenders return to the market and competition increases. This is obviously good news.
However, there does seem to be a lot of additional fees being introduced by lenders. Not necessarily fees that are new to the industry but we are seeing lenders introduce fees that were not previously charged. I have noticed some lenders introducing minimum base rates, refactoring fees, arrangement fees, legal documentation fees, etc..
Annual renewal fees are a fairly new introduction and are akin to overdraft fees as are arrangement fees. Some lenders ae even charging for the privelidge of using their internet system.
I think the message here is to be wary of headline rates. They can be misleading. It is important to consider total factoring costs when making a comparison.