Compare the discount rate (the percentage a factoring company takes) across at least two or three providers

Ask whether it's recourse or non-recourse factoring, and understand what happens if a broker doesn't pay

Check the advance rate — what percentage of the invoice you get upfront versus held in reserve

Ask about notification vs. non-notification factoring, and whether your broker relationships are affected

Read the contract length and cancellation terms — some factoring agreements lock you in for a year or more

Ask about additional fees: application fees, monthly minimums, same-day funding fees, or wire fees

Check whether fuel advances or a fuel card program are included, and what they cost

Ask how quickly invoices are typically funded once submitted

Check if you're required to factor every load, or only the ones you choose

Get the full fee schedule in writing before signing — not just the headline discount rate

Factoring Company Checklist: What to Compare Before You Sign