How do I go about terminating a factoring agreement?
The steps to take to end an arrangement with a factor prior to the agreed term should be spelled out in the contract itself, which you should naturally read carefully before signing. Some factoring contracts require a three-month notice, exercisable at any time or on a contract anniversary, while others may be terminated on an annual basis. Breaking a factoring agreement is always subject to full repayment of funds provided by the factor (or invoice discounter) and you need to make sure the required finance is available when needed. Members of the Asset-Based Finance Association (ABFA ), the body that regulates factors and other invoice finance providers, are required to adhere to a set of redefined procedures when a client is moving from one member to another in order to make the process as simple as possible for both the client and their customers.