Latest / Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance
How Receivables Financing Rates Actually Work for Small Business
Episode 28 of Cash Flow Conversations tackles a topic every small business owner encounters but few fully understand: how lenders set the rates on receivables-based financing. Lucas and Luna walk through the real mechanics behind a typical offer — starting with a concrete example of a $100,000 invoice financed at 1.5 percent for 30 days, then unpacking how that seemingly simple number translates into an effective annual rate of over 18 percent. They explore the role of advance rates, discount fees, and reserve accounts, and explain why the stated fee is rarely the true cost. The episode also…
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