Are factoring fees considered interest? | | Yes | 16% | | No | 50% | | Not sure | 33% | | | | | Question: Are factoring fees considered interest? Top Answer (50% of 6 votes): No.
Answer: No
Explanation: Factoring fees will be recorded differently depending on how they are structured by the factor and should be evident in the report the factor provides to you. If the cost of factoring is separated into fees and interest the interest portion would be recorded as interest. Always consult a qualified tax professional to verify. | | Diversified Resources | Answer: No
Explanation: Factoring fees are not considered interest since a factoring transaction is not a loan. | | Small Business Financial Solutions | Answer: No
Explanation: They are considered a cost. | | Commercial Mortgage Services |
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