ERPHow to compare two factoring offers
Ask both providers to quote the same invoice, amount and expected term. Compare the money available on day one, every fee, when any retained balance is released and your obligations if the customer does not pay. A lower advertised percentage is only one part of the decision.
Put both offers on the same basis
Keep the provider’s written offer beside the comparison. “2%” is incomplete without the amount it applies to, the period and the other charges.
- Use the current unpaid amount, after any payments or credits.
- State the expected financing start and customer payment dates.
- Ask which fees apply to the invoice value, the advance or another base.
- Check whether the quoted amount includes all applicable charges and taxes.
- Ask whether costs change if the customer pays early or late.
An illustrative comparison: cash now and cash later
These are invented offers, not Spona or bank prices. Assume a €10,000 unpaid invoice, the same term, full customer payment and no charges beyond those listed. Both fees are deducted upfront from the advance.
| Compare | Offer A | Offer B |
|---|---|---|
| Advance before fees | €9,000 | €10,000 |
| Total assumed fees | €200 | €250 |
| Cash received initially | €8,800 | €9,750 |
| Retained amount, released after full payment | €1,000 | €0 |
| Total received over the transaction | €9,800 | €9,750 |
Read the non-payment and dispute terms
Ask what “with recourse” or “without recourse” means in that specific contract. A non-recourse label does not mean every dispute, credit note, breach of representation or other exception is covered. Establish who must repay in each scenario and whether guarantees or other security are required.
- What happens if the customer pays late, cannot pay or disputes delivery?
- Who contacts the customer and who receives the payment?
- Can a reserve or retained amount be used to cover charges or losses?
- What must you notify the provider about after financing?
- Are there minimum volumes, cancellation costs or restrictions on other finance?
Ask for the answer in euros and dates
A useful final comparison states: amount received on the proposed payout date; all charges over the expected term; any later release; and obligations under a delayed-payment scenario. If a fee or condition is unclear, ask the provider to explain it in writing before deciding.
Use Spona’s financing calculator to explore an indicative scenario, then discuss the actual transaction. The agreement determines eligibility, structure and final terms. Educational comparisons do not establish that every Spona arrangement is legally factoring.
Further reading
Sources describe individual providers’ products. Check the current offer and agreement for your own decision.