What is termination fee?
Termination Fee: The fee to exit a factoring agreement early.
How it works
Common on multi-year agreements. Can be a flat fee, a percentage of the facility, or lost minimum fees for the remainder of the term. Always negotiated before signing.
Where you will run into it
Termination Fee comes up most often in invoice factoring conversations. See how invoice factoring works, including real cost ranges and timelines.
Termination Fee questions
The fee to exit a factoring agreement early.
Common on multi-year agreements. Can be a flat fee, a percentage of the facility, or lost minimum fees for the remainder of the term. Always negotiated before signing.
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