Our factoring services are priced using two base fees. The first fee is a one time fee per invoice called the Factoring Fee and is charged on the gross amount of each invoice. The second fee is the Utilization Fee and is calculated on the money advanced per invoice, based on the advance rate. The utilization fee begins on the day we advance you funds for that invoice.

Factoring fees are calculated as a percentage of the gross amount of the invoice. The utilization fee is calculated as a percentage over the Israeli prime rate (or LIBOR, in the case of dollars) and typically ranges from Israeli prime rate +1% to Israeli prime rate + 3%. Advance rates typically range from 75% to 85% of the gross invoice amount. Fees and advance rates are determined at the beginning of our working relationship and set out in the factoring agreement. We consider the following when pricing each transaction:

• Annual sales volume
• Creditworthiness of your customers
• Average invoice size
• Domestic or import/export
• Payment terms
• Payment and collection history
• Outside collateral