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How to get out of a factoring contract
Leaving starts with the notice clause: one signed agreement renewed itself for 24 months unless the client gave notice 60 days before the end, while Outgo says today you "may cancel our agreement at any time with 15-day notice." Sources: TCI agreement on SEC EDGAR; Outgo rates page.
Notice you have to give
Step by step
Find the term and renewal date
"This Agreement, along with the rate, volume commitment and other terms on rate sheets, shall automatically renew every Twenty-Four (24) months unless Client gives TCI written notice to the contrary at least Sixty (60) days prior to the expiration thereof."
TCI Business Capital, 2010"The Term shall automatically renew every Six months, for another Six month period, unless RIVIERA receives certified written notice of termination from CLIENT at least thirty (30) days prior to the expiration of the current Term."
Riviera Finance, 2006"Term One (1) Year with automatic annual renewals thereafter"
Triumph Business Capital (Advance Business Capital LLC), 2016If you miss the notice date, an auto-renewal clause like these keeps you in for another full term.
Check for an early termination fee
"'Early Termination Fee' - 5% of the Maximum Advance, applicable only if this Agreement is terminated subsequent to the No-Risk Termination Period and prior to end of the Term"
Triumph Business Capital (Advance Business Capital LLC), 2016"30 days from the date of this Agreement."
Triumph Business Capital (Advance Business Capital LLC), 2016. The no-risk termination period in this agreement."including but riot [sic] to any Minimum Charges and early termination penalties that apply."
Riviera Finance, 2006In the Triumph agreement the 5% was figured on the credit line (the "Maximum Advance"), not on what the client had factored.
Check minimums that keep running
"MINIMUM MONTHLY FEE : CLIENT agrees to pay to RIVIERA a minimum fee of Six Hundred Ninety Dollars ($690..."
Riviera Finance, 2006"is in due each month during the term of this Agreement, regardless of whether or not the CLIENT offers invoices for purchase or terminates this Agreement prior to its expiration."
Riviera Finance, 2006"will accrue and accumulate during this Agreement and will be due and payable in full upon the demand of TCI or ... upon termination"
TCI Business Capital, 2010. Volume shortfall charge.Ask when your reserve comes back
"Triumph may retain the Reserve Account for ninety days following termination of this Agreement"
Triumph Business Capital (Advance Business Capital LLC), 2016"No reserve will be returned on delinquent Accounts until all delinquent Accounts are paid in full."
TCI Business Capital, 2010Send the notice the way the contract says
Use the method in the contract (Riviera's required certified mail), keep a copy, and note the date it was received.
Get the lien released
Factoring agreements take a security interest, sometimes in more than invoices. One took "all of its personal property and assets of any nature, including ... inventory, equipment" (Porter Capital, 2009). When nothing is owed, the model Uniform Commercial Code says the secured party must end its financing statement (the UCC-1 lien filing the factor made with your state) after you ask in writing:
"In cases not governed by subsection (a), within 20 days after a secured party receives an authenticated demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if:"
UCC § 9-513(c) (model text, Cornell LII). Each state adopts its own version; check yours.
What companies publish about leaving today
| Company | Contract | Leaving |
|---|---|---|
| Apex Capital | "Unlike some factors, Apex doesn’t lock clients into long-term contracts, nor do we charge any monthly fees or cancellation fees." apexcapitalcorp.com | not published |
| Bobtail | "After a 90-day trial period, Bobtail moves you into a long-term contract." bobtail.com | "You can cancel any time in the first 90 days without penalty." bobtail.com |
| eCapital | "you are not required to sign long term contracts." ecapital.com | not published |
| HaulPay | not published | "there are no early termination fees or penalty fees." haulpay.io |
| OTR Solutions | "Contract lengths and requirements can vary by program, so our team will walk you through the terms before you sign." otrsolutions.com | not published |
| Outgo | "We don’t require annual contracts." outgo.dat.com | "You may cancel our agreement at any time with 15-day notice." outgo.dat.com"effective fourteen (14) days after written notice of termination is given by us to you" outgo.dat.com |
| Riviera Finance | "Simple applications, no set-up fees, and no long-term contracts make getting started with Riviera easy." rivierafinance.com | not published |
| Saint John Capital | "You can try out our service without the worry of being locked into a contract." saintjohncapital.com | not published |
| Thunder Funding | "If after your 90 day contract is up, and you’re not completely satisfied with our service, you’re not bound to any long-term contract." thunderfunding.com | not published |
Company terms quoted from their sites, read Oct 24-25, 2026. Signed agreements from SEC EDGAR, compiled in our methodology. Old agreements show clauses these factors have used; your contract is what counts. Not legal advice; a lawyer in your state can read your contract.
Questions
How do I get out of a factoring contract?
Find the end date and notice window, check for an early termination fee and minimums that keep running, ask when your reserve comes back, send notice the way the contract says, and get the lien released.
How much notice do I have to give a factoring company?
Whatever your contract says. In two signed agreements it was 60 days (TCI, before a 24-month term ended) and 30 days (Riviera, by certified mail). Outgo says today you can cancel at any time with 15 days' notice.
Is there a fee to leave early?
Some contracts charge one. In the Triumph agreement on SEC EDGAR it was 5% of the credit line (the "Maximum Advance"), not of what the client had factored.
How do I get the factoring lien released?
Ask in writing once nothing is owed. Under the model Uniform Commercial Code (9-513), the factor then has 20 days to end its UCC-1 filing. Each state adopts its own version of the rule, so check yours.