Freight Factoring: Factoring Agreement

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
  • Assignments
  • Credit Limits

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