Discount fees on non-recourse invoice factoring held at 1.8% to 2.4% per 30 days through Q2 2026, even as average DSO on SMB receivables extended four days year-over-year.
Invoice factoring pricing remained remarkably stable in Q2 2026 despite a measurable deterioration in receivables aging. Average days-sales-outstanding across the SMB book we monitor extended from 47 to 51 days year-over-year, yet non-recourse discount fees held at 1.8% to 2.4% per 30 days.
The stability reflects strong factor balance sheets, broad participation from credit-insurance providers, and a structural shift in factoring buyer demand toward staffing, transportation, and B2B services where DSO predictability remains high.
Operators with concentrated debtor risk (one customer above 30% of AR) should expect a 25 to 50 bps premium or a recourse structure. Lining up credit insurance before facility shopping materially improves pricing.
Spot factoring (single-invoice) remains the most expensive option — 3% to 5% per 30 days — but is useful for one-off large invoices outside the facility limit.
With the front of the curve at 4.85% and the belly inverting only modestly, equipment financing pricing has improved materially for A and B credits.
Average draw utilization on SMB lines crossed 62% in Q2 2026 — the highest since 2019 — yet headline pricing has tightened 90 bps as bank and non-bank lenders compete for prime files.
Senior bridge debt is pricing SOFR + 450 to 700 over 65% to 70% LTV, with 1 to 2 points up front. Pricing is materially better for industrial and worse for office.
