Compare factoring providers using a real invoice and a realistic payment date. A headline fee does not tell you how much cash arrives now, what happens if your customer pays late or what it costs to stop using the service.
Your goal is a written comparison that shows how each provider would handle the same receivables. Start with the invoices you actually need to fund, not your entire sales forecast.
Check whether the invoices qualify
Prepare a short list showing each customer's name, invoice amount, work completed, due date and normal payment behavior. Include disputes, credits and existing liens. Ask each provider which invoices it would consider and what verification remains.
Do not assume that every invoice-based business qualifies. FundThrough's eligibility page, for example, excludes unfinished work, consumer invoices, construction and real estate. Its first-funding requirements also differ from simply uploading any small invoice. Our FundThrough profile brings those program details together for comparison.
Separate immediate cash from later cash
Ask for three numbers for the same invoice: the amount deposited immediately, the amount withheld and the amount expected after customer payment. Request the conditions for releasing any withheld balance.
For illustration, a $20,000 invoice with an 85% advance provides $17,000 before any upfront deductions. The remaining $3,000 is not necessarily all returned; the agreement determines fees and other deductions. This is arithmetic for comparison, not a provider quote.
A higher advance may help you cover payroll sooner. It does not by itself establish a lower total cost. Compare the actual cash available on the date you need it.
Price a late-payment scenario
Request a written calculation for payment on the due date, 15 days late and 30 days late. Include setup, transaction, minimum-volume, collection and termination charges where applicable. Ask whether fees accrue daily, in fixed periods or in another way.
FundThrough's pricing page expresses its published fee per 30 days. That is why the billing period belongs beside the percentage in your comparison. Ask what changes if a customer takes longer than expected, and avoid treating a period fee as APR.
Identify who carries nonpayment risk
Ask separately about customer insolvency, a disputed delivery, a credit note and simple late payment. Request the contract clause that explains whether you must replace or buy back an invoice in each case.
FundThrough's own FAQ describes its product as recourse factoring and says the business remains responsible when the customer does not pay. Other offers may protect against specified credit events. Compare the actual events covered rather than assuming the phrase “non-recourse” removes every obligation.
Review the customer experience and your exit
Ask who sends the payment instructions, confirms invoices and contacts overdue customers. Agree on how your team will learn about a dispute. Have someone responsible for your customer relationships review that process before signing.
Finally, ask whether you can choose individual invoices, pause funding, or move to another provider. Record minimum commitments, renewal dates, cancellation notice, termination charges and the process for releasing liens and changing payment instructions. A seasonal business should understand the cost of a month with no funding.
Get help comparing the next step
Keep the quotes and unresolved questions together. Get help through BusinessLoanBroker.ai to request help with your financing search. For broader education on financing and working with a broker, visit BusinessLoanBroker.ai.