1. Match industry experience
Medical staffing, freight, manufacturing, and government contracting each have unique documentation and credit norms. Ask how many clients they fund in your vertical and request references.
2. Understand the fee stack
Look beyond the headline discount rate. Confirm whether fees include wire charges, minimum volume penalties, due diligence fees, and early termination costs. A transparent factor publishes a sample fee schedule before you sign.
3. Advance rate and reserve policy
Typical B2B advances range from 80%–95% of invoice face value, with the balance released when your customer pays (minus fees). Clarify how disputes, short-pays, and concentration limits affect your available balance.
4. Recourse vs non-recourse
Most mid-market programs are recourse — you buy back unpaid invoices after a defined period. Non-recourse shifts more credit risk to the factor at a higher cost. Know which you're getting.
5. Contract flexibility
Avoid multi-year lock-ins if your needs may change. Month-to-month or 6–12 month terms with clear exit clauses are standard for healthy relationships.
6. Customer service and funding speed
Can you reach a decision-maker? Same-day or next-day funding should be the norm once you're onboarded — not the exception.
Advanced Funding Group has funded U.S. businesses since 2006 from our Newtown, PA headquarters. Request a free quote or call (267) 446-7902 to compare programs side by side.