Net Funds Employed (“NFE”)

2020-07-17T09:45:21-05:00

What is “NFE” and what is “NFE Fees”?

“NFE” stands for “Net Funds Employed”.  NFE refers to a type of pricing factoring companies occasionally offer to clients.  It is the balance of outstanding advances on a clients factored accounts receivable.   NFE fees are the percentage of that outstanding balance which increases daily.

For example, NFE is similar to a home equity line of credit. The balance goes up or down, depending how you use it. In this scenario, the balance of your home equity line is your net funds employed (NFE), and the interest you pay monthly is your NFE Fee.