💡 Summary #
Your Factoring & Security Agreement with Factor & Fund is designed to be flexible.
You can modify, pause, or cancel your agreement at any time — provided all active invoices have been paid and reconciled.
We make transitions simple, transparent, and penalty-free when your account is in good standing.
⚙️ When You Can Change or Cancel #
You may request changes or termination if:
- Your business no longer needs factoring or PO financing.
- You want to adjust your advance rate, buyer list, or fee structure.
- You’re refinancing or switching to another lender.
- You’re selling or restructuring your business.
🟦 All requests must be made in writing to your account representative.
🧩 Step-by-Step: How to Cancel or Modify #
1. Submit Written Request #
Email your account representative with a short written request stating your intent to change or cancel your agreement.
Include:
- Company name
- Effective date of change
- Reason for modification or closure
📧 Example:
“We would like to cancel our factoring agreement effective [date]. Please confirm the steps to close our account once all reserves and invoices are cleared.”
2. Review of Open Invoices #
Our accounting team will:
- Verify all factored invoices are fully paid by buyers.
- Confirm all reserves and fees are settled.
- Reconcile any pending transactions or adjustments.
Funding cannot end until all open invoices are cleared.
3. UCC Termination Filing #
Once your account is fully reconciled:
- Factor & Fund files a UCC-3 Termination with the Secretary of State.
- This releases the prior UCC-1 lien associated with your receivables.
- You’ll receive a copy of the official termination notice for your records.
✅ This confirms that your account has no ongoing secured obligations.
4. Agreement Modification (If Not Canceling) #
If you’re adjusting terms instead of canceling:
- Your representative will issue a short Amendment to Factoring Agreement.
- The amendment will outline changes to advance rates, buyer limits, or fees.
- Both parties e-sign digitally to update terms immediately.
5. Final Account Summary #
After closure or modification, you’ll receive a Final Account Statement showing:
- All invoices funded
- Fees collected
- Reserves released
- UCC release confirmation
⚖️ Important Legal Notes #
- Canceling your agreement does not affect your company’s credit.
- All UCC filings are removed promptly after closure.
- No termination penalties apply when your account is current.
- If disputes or unpaid invoices exist, closure will pause until resolution.
✅ Best Practices #
- Notify Factor & Fund at least 5 business days before your desired end date.
- Reconcile any outstanding invoices early.
- Retain your final statement and termination notice for accounting or future financing use.
❓ FAQ #
Can I cancel while invoices are still outstanding?
No. Funding must remain open until all buyer payments clear.
Do I need to sign anything to close the account?
Yes. You’ll e-sign a short Account Termination Acknowledgment confirming closure.
Can I reopen my account later?
Yes. Returning clients can reactivate within 12 months without reapplying — simply provide updated documents.
