Bonus · template
Factoring company comparison
The 6 questions to ask every factoring company before signing.
The 6 questions
- 1Advance rate — what % of invoice up front? (85–97% typical)
- 2Fee — flat or tiered? (2–5% typical)
- 3Recourse or non-recourse? Non-recourse means they eat non-payment. Worth 0.5% more.
- 4Contract length — month-to-month or 12+ month lock-in?
- 5Minimum volume — do they charge if you don't factor enough?
- 6ACH fee, wire fee, credit-check fee — the "gotcha" line items
Comparison table (fill in during your calls)
| Question | Company A | Company B | Company C |
|---|---|---|---|
| Advance rate | |||
| Factor fee | |||
| Recourse type | |||
| Contract length | |||
| Minimum volume | |||
| ACH/wire fees | |||
| Fuel card discount | |||
| Load board access |
Who to call
- Apex Capital — high volume, competitive fees
- RTS Financial — good fuel card program
- TAFS — flexible contracts
- OTR Solutions — non-recourse specialist
The trap
Watch for "discount fee" + "reserve" structures where they hold 5–10% back "just in case" and release slowly. Ask exactly when reserve is released.