Sample offer review

What you get back when you send us an offer

Send us any factoring offer and Ryan reads every line, then sends you a review like this one, usually within one business day. Free, whether or not you work with us.

This is an example. The offer and numbers below are made up to show you the format. They use our standard example: one $50,000 invoice, 90% upfront, 2% per 30 days. No real client or funder is shown.

The bottom line

On your typical invoice, this offer costs about $2,215 a month, which is about $4.43 per $100 of invoices. The "2%" on the first page tells you very little. The offer is workable, but three terms cost you real money. Here's what they are and what I'd push for before you sign.

Invoice$50,000, customer pays on day 38

Cash upfront (90%)$45,000

Discount fee (counted by the month)$2,000

Wire, credit check and service fee$215

All in for this invoice$2,215

Back to you when your customer pays$2,785

What I found

The fee is counted by the month: $733 more on this invoice. Your customer pays on day 38, so day 31 starts a whole new 2%. Counted by the day, those 8 extra days would cost $267, not $1,000.

A $50,000 monthly minimum: $600 extra in a slow month. If you only factor $20,000 one month, you still pay as if you'd factored $50,000.

12 months that renew on their own. It renews unless you cancel in a 60-day window, and leaving early costs $2,500. Easy to miss, expensive to forget.

What's fair in this offer

The 90% advance is solid for this kind of business. Recourse after 90 days and a lien on receivables are standard. Nothing here is unusual, and that's the point: the costs that matter are the ordinary ones nobody adds up for you.

What I'd do

Ask for day counting after the first 30 days. On this invoice, that alone saves $733.
Lower or drop the monthly minimum, or set it near your slowest month instead of your average.
Get the renewal date and exit fee in writing, and put the cancel window on your calendar the day you sign.
Compare it against two competing offers. I can bring those to you side by side, in the same dollars, so you're not judging this one alone.

— Ryan Abramovic, Fairgate Advisors

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