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The Factoring Contract Red-Flag Checklist

Sixteen things to find in a factoring agreement before you sign it, on one printable page. Each item says why it matters and where the warning comes from. Free: enter your email and the checklist opens right away.

What's on it

1. Term length and the exact end date
2. Automatic renewal and the notice window
3. How notice has to be sent
4. The termination fee, in dollars
5. The full written fee schedule
6. Monthly minimums and shortfall fees
7. Reserve percentage and release timing
8. Advance percentage and when it's paid
9. Recourse period and chargebacks
10. What "non-recourse" actually covers
11. How a "dispute" is defined
12. "Factor everything" and exclusivity
13. A fuel card tied to your factoring account
14. UCC-1 release terms
15. Notice of Assignment release letters
16. Sales promises missing from the contract

Prefer to read the long version? The same red flags are explained in Factoring contract red flags, and how to leave a factoring company.