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I had a small business once with a few large outstanding invoices. These were owed to us (small company) by a very large organisation. Our payment terms were 30

I had a small business once with a few large outstanding invoices. These were owed to us (small company) by a very large organisation. Our payment terms were 30 days and the invoices were now out to 120 days. We were hurting very badly, but had pretty much no leverage over the very large organisation to make them pay - we weren't the only game in town and they could just take their business elsewhere. Anyway, we investigated factoring of the invoices and we certainly weren't offered 95%!! This was probably 10 years ago now, but I recall we would only received something like 70% of the total invoice value. I thought it was a real rort.

NoboruWataya 5y ago
From the circumstances you were describing I'm surprised you were even offered 70%, as it sounds like there was a significant risk those invoices would not get paid. The 95% (or there abouts) is for invoices that will almost certainly be paid on time. Defaulting debts are often sold for cents on the dollar.