Cost sheet for factoring service:

a) Direct cost rs
Per invoice amount xxx
Per active account xxx
Per debtor account xxx
Per client (% of turnover) xxx
Bond debts provision xxx
(%of turn over) ________
Total direct cost xxxx

b)Administrative cost (%of turn over) xx

_____
c) Total operative/ factoring cost: xxx
(A+B)
d)Profit (% of turn over): xx
e)Total required income: ______
Xxxx
_________
Therefore factoring charge required:
c+d or e/ total turnover *100.= % of turn over
Eg: for rs.20 lakhs turnover the costing and pricing
would be as under:
Description No of Cost per instrument rs. Total cost
instruments rs.
Invoices 1,800 1:50 2,700

Active 80 50 4,000
accounts
No of 120 4:00 480
customers
Per client - 1% of turnover 2,000

Transmission 0.1% of turnover 200

cost
Total direct ============ 2,700+4,000+480+2000+200) 9,380
cost (A) == ========================
Admin cost 1.5% of turn over 3,000
(B)
Total 9,380+3,000 ============== 12,380
operative
cost (c=a+b)
Profit 1%of turnover 20,000
required
Total req (12,380+20,000)=========== 32,380
income

Factoring charge would be: 32,380 / turn over:1.62%