Free tool
Factoring agreement checklist
Twenty-one contract points that decide your real cost, your risk and what it takes to leave. Check off what your proposal answers clearly — whatever is left is your question list.
Before You Sign, Compare Your Options
Understand the agreement and explore available alternatives.
Short answer
Before signing a factoring agreement, confirm in writing: the rate structure and every fee, the advance and reserve release timing, whether the facility is recourse or non-recourse and what non-recourse excludes, the recourse period, the UCC collateral description, any personal guarantee, the term and auto-renewal window, the notice period, and the early termination formula.
Pricing and fees
Advance, reserve and payment
Recourse, credit and risk
Security, notice and exit
Questions to put to the provider in writing
Work through the list above. Anything you leave unchecked shows up here as a question to put to the provider in writing.
This checklist is educational and is not legal advice. HaulFund is a factoring broker, not a factoring provider or law firm. Contract terms vary by provider; have an attorney review any agreement before you sign.
Key takeaways
- The rate is rarely what makes a factoring agreement expensive.
- Non-recourse covers credit failure, not disputes or paperwork problems.
- Auto-renewal plus a short notice window is the most common trap.
- A blanket UCC filing can block equipment financing later.
- Get every answer in writing before you sign, not after.
How to use the unanswered items
Send the leftover questions to the provider as a single numbered email and ask for written answers. Two useful things happen. You get documentation you can hold up later if the practice differs from the promise, and you learn how the provider behaves when a carrier asks precise questions — which is a fair preview of how they will behave when an invoice goes sideways at 120 days.
Frequently asked questions
- Which clause causes the most trouble for carriers?
- Auto-renewal combined with a narrow notice window. Carriers often discover the window closed weeks before they thought about leaving, which renews the term and triggers minimum fees.
- Is non-recourse factoring risk-free?
- No. Non-recourse typically covers only the customer's credit failure. Disputes, short-pays, cargo claims, rate discrepancies and paperwork issues generally remain your responsibility.
- Can HaulFund review my agreement?
- HaulFund is a factoring broker and does not provide legal advice. This checklist helps you ask better questions; for a binding interpretation of your contract, consult an attorney.
Keep reading
Factoring Contract Center
Clause-by-clause explanations.
Compare factoring offers
Price two proposals side by side.
Recourse vs non-recourse
What each really covers.
UCC filings explained
What gets filed against your business.
Termination fees
What leaving actually costs.
Notice of assignment
How brokers are told where to pay.
Want help comparing your options?
Send us the proposals you already have, or start from scratch. HaulFund compares factoring options from participating third-party providers — the provider you choose makes the final decision.
HaulFund is a factoring broker and is not a direct lender or factoring provider. HaulFund connects businesses with independent third-party factoring providers. HaulFund does not make final credit, underwriting, approval, or funding decisions. Rates, fees, advance amounts, funding times, contract terms, and eligibility vary by provider and are subject to provider approval.