The direct answer
Purchased amount, factor rates, fees and payment structure. No single provider uses one universal approval formula, so evaluate the entire transaction rather than relying on a single threshold or headline.
What to review
- Total dollars received and total contractual obligation
- Daily, weekly or percentage-based remittance
- Current business cash flow and existing payments
- Contract rights, guarantees and UCC language
- Alternative structures that may be less expensive or better matched to the need
Questions before signing
- What are the net proceeds after fees and payoffs?
- What is the purchased amount or repayment obligation?
- How often is payment collected?
- What happens if revenue declines?
- What guarantees or security interests apply?