The factoring contract auditor
Upload your agreement. We read every fee, tier, minimum, and trap clause, then show your true effective rate and what you could save with better terms. Free, in about a minute.
Automatic red flags
A quick self-check. These are the mechanics that quietly move money from your side of the table to theirs, and the standard contract carries most of them.
Contract self-check
Is your rate over 1.5% a month?
Are fees charged on the full invoice, even the 10 to 15% you never received?
Do you pay an automatic 30 days, even when the invoice pays in a week?
Does the meter start the day you invoice, whether you needed the cash that day or not?
Does your money take 2 or 3 days to show up after you request it?
Are you forced to hit a monthly minimum to avoid a penalty?
Do monitoring fees, $19 wires, credit-check fees, or a due diligence charge show up on your statements?
Answered yes to any of these? Or not sure what your contract actually says? That is exactly what the audit is for.
Audit my contractThe effective-rate gap
2% a month sounds like 24% a year. Then the mechanics stack, and real contracts land at 30 to 40% or more of the cash you actually received. Here is how the gap opens.
24%
effective annual rate in the industry's own published example
$10,000 invoice. 85% advance, so $8,500 in hand. 2.5% fee = $250. Paid in 30 days. Effective rate on the cash received: roughly 30% annualized.
Corpay's published worked example. Their published range: 15 to 60%+.
2% covers the first 30 days. Tiers stack after that: real contracts bill 2.7%, 3.5%, and beyond as the invoice ages.
You received an 85 to 90% advance, but the percentage is computed on 100% of the face value. Money you never held, billed anyway.
A 30-day minimum charge means the invoice your customer paid in 7 days costs the same as one that dragged a month.
Two to ten "clearing" days of charges after the customer already paid. The industry’s own manual calls anything past 2 or 3 unreasonable.
The advance is pushed the day you invoice, whether payroll is Friday or two weeks out. You pay for money sitting in your account.
Monthly monitoring fees, $19 wires, a credit-check fee for every new customer, due diligence charges. Line items with nothing to do with advancing you money.
Mechanics documented in current published factor terms and a real SEC-filed factoring agreement. Shown as an illustration of how the math works, not a claim about any specific company. Your contract sets your numbers.
The audit, demonstrated
The 2% you remember is the day-1 tier. At a 40-day pay cycle, this contract bills 2.7%.
Invoices that pay in 12 days are billed as if they took 30.
Three more days of charges after the customer already paid.
Miss a 60-day certified-mail window and the whole thing renews itself for another year.
Illustration: $600,000 factored per year at a quoted 2% per 30 days, invoices paying on day 40 on average, one fifth of volume paying inside 12 days, 3 clearing days. Real contracts vary. The audit runs your actual numbers.
How it works
PDF or phone photos. The agreement you signed, or one you have just been offered. About 60 seconds of your day.
Every fee, tier, minimum, float day, guarantee, renewal window, and release clause. Then the math runs your numbers across three payment-timing scenarios.
Your true effective rate, the clauses that cost you, an estimated annual savings, and an honest verdict. If your contract is competitive, we say exactly that.
Contract audit report
Sample Carrier LLC
You think you pay
24%/yr
Effective at day 40
33.8%/yr
Tiered escalation past day 30
Fee charged on full invoice face
Forced monthly minimum
No discovery call to get a number. No quote that needs a signature first. The audit shows its work: what each clause says, what it costs you, and what the same volume would cost on better terms. What you do with that is up to you.
Run my auditThe contrast
Most factoring contracts are written the standard way, and the standard way benefits the factor, not you. We broker with factors whose terms survive their own audit. If your contract already looks like the right-hand column, keep it. We will tell you exactly that.
The standard
The better contract
Headline rate
The standard
A 2%-a-month headline that escalates tier by tier after day 30, reaching 10%+ on old invoices.
The better contract
Typically around 1 to 1.5% monthly equivalent, charged as a daily rate.
What the rate is charged on
The standard
The full invoice face, including the 10 to 15% that was never advanced to you.
The better contract
Only the amount actually advanced to you.
Fast-paying invoices
The standard
A 30-day minimum charge: the invoice that paid in a week costs the same as one that took a month.
The better contract
A daily rate means a 7-day invoice costs 7 days.
Which invoices, and how much
The standard
Whole ledger, full invoice, every time. Every customer, every invoice, or the account is in breach.
The better contract
You choose which customers go into your borrowing base, then draw any amount from zero to 90% of that AR. It works like a line of credit.
When you get funded
The standard
The advance lands the next business day, or two or three days later.
The better contract
Same-day funding.
When the meter starts
The standard
Fees start the day you invoice, even if payroll is not for two weeks.
The better contract
You schedule the advance for the day you actually need the money. The meter starts then.
Fees on the statement
The standard
Monitoring fees, $19 wires, credit-check fees for new customers, due diligence charges up to $2,500.
The better contract
No due diligence fee. Wires near cost. No monitoring fee.
Getting out
The standard
Exit only inside a narrow notice window before auto-renewal, plus early termination fees.
The better contract
A clean exit path, in writing, before you sign.
Left column: contract mechanics documented in current published factor terms and a real SEC-filed factoring agreement. Right column: what we require of placement partners; exact terms depend on your volume and industry and are confirmed in writing before you sign anything.
Pro forma funding
The better contract has one move the standard one cannot copy, and staffing owners feel it most. Owners who have factored for ten years are routinely never told this exists.
Aug 1
You land the client
Your crew starts the work.
Aug 15
Payroll is due
Time cards are in. The work is done and verified.
Funded hereSep 1
You are finally allowed to invoice
The standard factor could not touch this until now.
~Oct 1
Your customer pays
Net-30 after the invoice date.
Pro forma funding advances against completed, verified work: time cards in, work confirmed, money out. It is not a pre-bill and not a loan against a promise. The work is done; the only thing missing is the calendar date your customer contract lets you print an invoice. The majority of factors will not do this. The ones we place with do, in any industry with clean proof of work, and staffing is where it changes everything.
Ask any factor one question: can you advance on completed work, or do I wait for the invoice?
If the answer is wait, that is a red flag on its own.
Free. Confidential. We are not a factor.
Who this is for
Rate cons, quick pays, chargebacks, reserves you cannot touch. Owner-operators and small fleets are the reason this audit exists.
Audit my contract →
Weekly payroll against net-60 clients. If your factor cannot fund completed work before you invoice, you are carrying a crunch you do not have to.
Audit my contract →
Agencies pay slow but the paperwork is solid, which makes these the invoices factors compete for. Know what your terms should look like before you sign.
Audit my contract →
PO-to-cash gaps at real margins. Your all-in cost per order, computed instead of guessed.
Audit my contract →Questions owners actually ask
Sometimes. Published 2026 benchmarks run roughly 1 to 4% per 30 days depending on industry, volume, and payment history. The headline number matters less than the mechanics around it: what the rate is charged on, how it escalates by tier, minimum-day charges, float days, and monthly minimums. That stack is what the audit computes from your specific contract.
Almost always yes, but on the contract’s calendar, not yours. Most agreements auto-renew unless you give written notice inside a specific window, and a clean exit runs in order: balances to zero, a buyout if invoices are open, the release letter, then the UCC termination. The audit circles your dates and lays out the steps.
Only if your contract says so. Whole-ledger clauses require everything; selective contracts let you pick customers and invoices. The best structure works like a line of credit: you choose which customers go into a borrowing base, then draw only the amount you need. Plenty of owners have never checked which one they signed. It is one of the first things we look for.
In some contracts, yes. It is called pro forma funding: an advance against completed, verified work (signed time cards, delivery confirmations) before your customer contract even allows you to invoice. It is not a pre-bill and not a loan against a promise; the work is done. Most factors will not offer it. For a staffing agency running payroll every two weeks against net-60 clients, it closes the exact gap that hurts most. If nobody ever told you this exists, that alone is worth an audit.
Nothing, and that is not a teaser. We are a placement broker: if we place you with a better factor, that factor compensates us. If your contract is already competitive, we tell you so and you have lost a minute. Either way, you never get a bill for the audit.
Here, no. Some factors charge due diligence fees that run as high as $2,500 just to consider you, and you can pay it and still get declined. That fee is a big part of why owners stop shopping their contract. The audit is free, and the factors we place with charge no due diligence fee. Looking should never cost you money.
No. We do not buy invoices and we do not fund advances. We audit factoring agreements, compare the terms against current market standards, and place businesses with factors in our network when the math clearly favors a move.
It is used only to prepare your audit. It is stored privately, reviewed only by our team, and deleted within 90 days unless you are actively working with us. Ask and we delete it sooner.
Buyout math checked against your statements. Notice sent inside the window. Release letter and UCC termination managed. A landing spot whose terms cannot trap you. And if your audit comes back clean, you will know you are in a fair deal. That is worth a minute too.
Upload it. In about a minute you get your true effective rate, the clauses working against you, and an honest answer on whether better terms exist for you.
Free. Confidential. We are not a factor.
