The Freight Factoring Transaction: Reserve and Advance
When assessing a factoring agreement, the client should make sure they have a clear set of priorities that define their cash flow needs. Most business owners are trying to establish three facts up front:
- How much of the Advance is received upfront?
- What is the cost
- How fast will funding transactions take place
In addition to these vital issues, the factoring agreement should clearly define all the contractual terms. Here’s what to look for in a Factoring Agreement:
- How to leave a Factoring Company
- `Notice of Termination / Early Termination
- Monthly Minimums
- All costs
- Credit Limits
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