How to Read a Funding Offer — What to Check Before You Sign

1. Total Payback & Term

• Factor rate vs APR: Always ask for both. A 1.35 factor looks simple, but the APR equivalent could be 60%–100% depending on the term.
• Term length: $50k over 6 months vs. $50k over 18 months are two very different obligations.
• Ask: “What’s the total I will pay back, and over how long?”

2. Payment Frequency & Flexibility

• Are payments daily, weekly, or monthly?
• Do payments flex with revenue (percentage‑based) or stay fixed?
• Tip: Flexibility matters if seasonality or uneven receivables are part of your business.

3. Prepayment Policy & Discounts

• Some funders penalize early payoff by demanding the full factor regardless of timing.
• Others provide discounts if you settle early. (QuickWave favors this approach.)
• Ask: “Do I save money if I pay off early?”

4. Fees & Origination Costs

• Look for processing, origination, underwriting, or admin fees.
• Check if fees are taken up front or added into payback.
• Rule of thumb: All fees should be disclosed in writing before you sign.

5. Guarantees & Collateral

• Does the offer require a personal guarantee?
• Is collateral (equipment, inventory, receivables) pledged?
• Understand exactly what assets—or personal liability—you are committing.

6. Covenants & Fine Print

• Any restrictions on taking additional funding (“stacking”)?
• Any triggers for default (missed payments, revenue dips, etc.)?
• Pro tip: Always ask for plain‑English explanations of covenants.

QuickWave’s Pro‑Business Checklist

We advise every client to confirm:

• ✅ Total payback, term, and APR equivalent
• ✅ Payment frequency and adjustment options
• ✅ Prepayment discount policy
• ✅ All fees disclosed in writing
• ✅ Guarantee/collateral requirements clear
• ✅ No hidden covenants that limit growth