Guide
How to Choose a Funding Partner
Twelve questions that separate a real funding partner from a call center selling whatever closes today.
May 18, 2026 · 7 min read
Questions about the offer
Ask each one and expect a written answer.
- What is the total dollar cost, not the factor rate?
- What is the expected term, and what changes it?
- What fees are deducted before I receive funds?
- Is there a discount for early payoff?
- How does reconciliation work if revenue drops?
- What is your commission on this transaction?
Questions about the firm
Are you the funder or a broker? Where are you registered? Will my application be shopped to multiple funders, and will that generate multiple credit pulls or a flood of calls?
Who will I speak to after funding, and what happens if I need to restructure?
Signals to walk away
Pressure to sign today, refusal to put total cost in writing, encouragement to take a second position on top of an existing advance, or an offer larger than your deposits reasonably support.
The last one is the clearest tell. A funder who does not care whether you can repay is not underwriting — and you are the collateral.