Termination fee

A charge for ending the factoring agreement early or without proper notice.

Why it matters

Termination fees can be calculated as a multiple of minimum monthly fees or a flat amount. Automatic renewal language can restart the termination window without notice.

Related terms

Related article: What is invoice factoring?

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.