What is the total cost in dollars?
Ask for every fee and the total you will repay, in dollars, for the amount and the time you expect to use it. A price quoted by the week or the month, or as a factor, can look small and add up.
How and when is it repaid?
Daily or weekly withdrawals from your bank account work differently from one repayment when the government pays. Match the schedule to when your invoices are paid.
What do I pledge or sign over?
Ask whether the provider files a lien on your business assets, takes an assignment of your government receivables, or requires a personal guarantee.
Does my contract allow it?
Some government contracts restrict assigning payments to someone else, or require notice. Read the assignment clause and ask the contracting office if you are unsure.
Will it affect a certification?
Terms that give a provider control over the business, or a say in its decisions, can matter for programs that certify ownership and control. Check with your adviser before signing.
Who is the provider, and who is paid to introduce me?
Ask for the legal name of the company that will fund you. An introducer, including us, may be paid by the provider. Several states require brokers to register and providers to give written cost disclosures. Ask for yours.
What if the government pays late or disputes the invoice?
Ask what you owe, and when, if payment is delayed or reduced.
Is there a cheaper way?
Where your government offers Early Pay, an approved invoice can be paid early for a rebate, with nothing borrowed. A bank line of credit usually costs less than short-term financing if you qualify for one.
We are not a lender and do not give financial advice. This is general information, not a recommendation of any product or provider.