[Kevin Henry-Seacoast]

Micah-Some factors only pay 10% of net or a one time upfront fee. We pay up to 15% of net spread. Since our cost is next to nothing the net spread is better than what some consider gross. Keep in mind, some that claim they pay on gross spread also don't tell you that they are really paying net or pull back some form of 'house fees'.
We have been known to pay over our standard rates for the right partners and the right prospect. Case in point the deal I mentioned above.... The referral partner on that deal had never done a factoring deal before, did little to no work upfront, was open and honest about his relationship with the Prospect, was on every call to learn more about how we approach deal and work with clients, and we gladly paid that person over the norm. The referral partner has done several deals with us since and referred us to other referral partners.

Micah,

Here's an example of the difference. Let's assume it's a $4mil facility for a $25Mil revenue Staffing Company. A facility priced at 8.85% yield would have a gross revenue of $194,270. 10% of the gross would be $19,427. 15% of the net with my cost of funds is $28,031.