Advance rate
The percent of the invoice the factor pays before your broker pays.
10 of 29 factors publish this.
Home Factoring terms
Factoring agreement terms, in plain words
Every factoring agreement uses the same handful of terms. Here is what each one means, and what each factor publishes about it. If a factor does not publish it, we say Unknown.
For the wording inside a contract, see factoring contract clauses.
Fees
The rate plus any extra charge, such as a wire or same-day payment.
16 of 29 factors publish this.
Reserve
Money held back from the advance and paid later, if the agreement says so.
0 of 29 factors publish this.
Recourse / non-recourse
Who takes the loss if an approved broker does not pay.
7 of 29 factors publish this.
Volume minimums
Whether you must factor every load or a set amount each month.
6 of 29 factors publish this.
Contract length
How long the agreement lasts.
14 of 29 factors publish this.
Auto-renew
Whether the agreement continues by itself.
1 of 29 factors publish this.
Notice and termination
How you end the agreement, and what it costs.
1 of 29 factors publish this.
Notice of assignment
The notice that tells a broker whom to pay.
Funding speed
How fast the factor says the money reaches your account.
27 of 29 factors publish this.
How we label terms
- Confirmed. A dated contract or written agreement we reviewed.
- Publicly promised. The factor's own website, with the date we read it.
- Conflicting. The factor's own pages disagree. Both are shown.
- Unknown. Not published, and no contract on file. It never counts for or against a factor.
Sales of accounts are covered by UCC 9-109. Assignment and notice: UCC 9-406. Termination statements: UCC 9-513. States adopt the UCC with changes. This is general information, not legal advice.
Some factors pay us a referral fee when a driver signs with them. You pay nothing extra, and it never changes a score or ranking.
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