By the assignment of receivables, the seller company gets an added value throught the factoring services; so it is possible to split the factoring cost in two main categories:
Evident cost: the sum of all charges Actual cost: it is the difference between the apparent cost and the management advantages, both commercial and risk coverage which are fully integrated in the factoring service
The costs of a factoring transaction are composed by:
Interests paid on the eventual receivables' cash advances Factoring commissions
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