1. What is the total amount I will remit, and what will I actually receive?
Ask for two numbers side by side: the purchased amount, which is the total you will deliver, and the net amount that will land in your bank account after every fee. The gap between them is your real cost. Do not rely on a factor or percentage quoted on a call; find both numbers in the contract.
- Is anything deducted at funding, such as origination, underwriting or administrative fees?
- Is an existing balance being deducted from the proceeds?
- Are there ongoing fees, such as monthly account or returned-payment fees?
A retailer quoted a round funding figure may find the actual deposit noticeably lower once fees are taken out. Knowing the net amount prevents building a plan around money that never arrives.
2. How much will be debited, and how often?
Ask for the exact remittance amount, whether it is daily or weekly, which days debits run and which account they come from. Then test it against your real bank balance on your slowest weeks. A payment that looks small as a daily figure can add up quickly across a month.
Lay out your last several months of deposits and look for the lowest balance points. If the debit would have caused a returned payment in any of those weeks, the offer is too heavy for your cash flow, or it needs a working reconciliation clause to be safe. Also ask whether debits run on bank holidays or skip them.
3. How does reconciliation work if my sales drop?
Ask where the reconciliation clause is, how often you can request an adjustment, what documents you must send, how quickly the funder must respond and whether it has declined properly documented requests. A clear, specific process protects your cash flow; a vague promise to consider adjustments protects very little.
Seasonal businesses should ask this first. A landscaping company or a home-service business with a quiet stretch needs to know, before signing, exactly how payments can move with revenue. Read our full reconciliation clause explainer.
4. What does the personal guarantee cover?
Ask whether the guarantee is a performance or validity guarantee tied to specific breaches, or broader, and list every event that could make you personally responsible. Ask who must sign it, whether a spouse is included, and whether a confession of judgment or similar document is part of the packet.
- Is it limited or unlimited?
- Which specific actions trigger it?
- Does it end when the purchased amount is delivered?
- Is there a confession of judgment anywhere in the documents?
See what a personal guarantee really means.
5. What counts as a default?
Ask for every event of default, not just missed payments. Many contracts also list changing or closing the bank account, blocking debits, switching card processors, selling the business, taking other funding against the same receivables and inaccurate application information. Then ask what happens after a default is declared and whether there is any notice period.
Compare the list with your plans for the term. If you might switch banks, move to a new payment processor, add a partner or seek other financing, raise it now and get permission in writing. An anti-stacking clause, which restricts additional funding, is especially important to understand before you need more money.
6. Does repaying early lower the total?
Ask whether the contract includes an early-repayment discount, and if so, exactly how it is calculated and how long it is available. Many merchant cash advances owe the full purchased amount regardless of how quickly you deliver it. If a discount was mentioned on a call, make sure it is written into the agreement.
Also ask what written confirmation you will receive when the balance reaches zero, and who files the UCC termination afterward.
What else should I ask before signing?
Ask who the funder is and whether you are dealing with its team or a broker, who services the account after funding, how disputes are handled and whether you can have time to review the contract with an attorney. A reputable company will give you the full agreement and time to read it.
- What is the legal name of the funder, and can I verify it? See how to check a funding company.
- Who do I contact after funding?
- Is there an arbitration or jury waiver clause, and which state's law governs?
- Can I have the full contract before the offer call ends?
This is general information, not legal advice. Terms vary by contract and state; consult an attorney before signing.
Frequently asked questions
How do I find the total repayment amount in the contract?
Look near the beginning of the agreement for terms such as purchased amount, amount sold or receipts purchased, usually next to the purchase price. If you cannot find it, ask the funder to point to the exact section.
What if the funder will not explain reconciliation?
Treat that as a warning sign. Reconciliation is central to how many advances work. If a company cannot or will not explain it clearly, consider other offers.
Which answers should be in writing?
All of them that affect cost or risk: net funding amount, remittance, reconciliation process, guarantee scope, default events and any early-repayment discount. The written contract governs, not what was said on a call.
Is it reasonable to ask for time to review?
Yes. Asking for a day or two to read the contract, or to have an attorney review it, is normal. Pressure to sign within minutes is a red flag, even from a real company.
Can I negotiate any of these terms?
Sometimes. Owners with steady revenue may be able to ask for a smaller remittance with a longer expected term, a clearer reconciliation process or removal of certain documents. Asking helps you learn what is flexible.
Ask every question, then decide
Apply once and review offers from our funding partners with time to read every term.
Updated September 14, 2026 · TrustedBizFunder Funding Team