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Does factoring require a minimum number of invoices?


The terms of your factoring arrangement will be heavily dependent on specific circumstances such as the size of your business, the volume of your invoicing, the number of debtors and their risk assessments. Therefore, the minimum number of invoices set by the factor will depend on the type of contract entered into. A minimum number of invoices are not always required, although you may be offered better returns if a minimum number can be guaranteed each month. Some factors will also ask for a guaranteed number of clients or a minimum value per invoice to make the agreement worthwhile for all parties.

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