National Factoring Association (NFA)

The National Factoring Association (“NFA”) operates a structured, transparent marketplace designed to connect businesses (“Clients”) with qualified factoring companies (“Funders”) in a controlled and monitored environment. 

This Agreement establishes the terms and conditions for participation on the NFA platform. 

By submitting an application and participating on the NFA platform, Funder agrees to comply with all terms outlined herein. 

NFA reserves the right to approve, deny, suspend, or remove any Funder at its sole discretion. 

NFA operates as an independent platform providing visibility, standardized estimates, and comparison tools. 

• NFA facilitates introductions between Clients and Funders  
• NFA does not guarantee deal placement or funding outcomes  
• All agreements are executed directly between Funder and Client  

NFA retains full discretion over platform participation, visibility, and removal to maintain the integrity of its marketplace. 

Funder agrees that all submitted and displayed information must be accurate, current, and reflective of real-world execution. 

Funder agrees: 

• Pricing must reflect executable transactions under normal conditions  
• No misleading or unsupported “teaser” rates  
• All fees must be clearly disclosed, including:  
• Factoring Fees  
• Processing Fees  
• Wire Fees  
• Early Termination Fees  
• Any additional, incidental, or sundry fees of any kind  

Funder further agrees: 

• No undisclosed fees may be introduced at any stage of the transaction  
• Any fee not disclosed upfront may be deemed a violation of platform standards  

Any material deviation between presented pricing and executed agreements must be justifiable. 

Funder acknowledges that: 

• NFA may receive and review term sheets for transactions originating from the platform  
• Submitted terms may be compared against:  
• Platform estimates  
• Industry-standard structures  
• NFA monitors consistency between:  
• Displayed pricing 
• Offered terms  
• Final executed agreements  

Failure to maintain consistency may result in removal. 

Funder agrees to operate professionally within a multi-funder environment. 

• Clients may engage multiple funders simultaneously  
• Competition must be based on:  
• Pricing  
• Structure  
• Service  

Funder agrees not to engage in: 

• Pressure tactics  
• Misrepresentation  
• Artificial urgency  

Funder agrees to meet the following minimum standards: 

• Initial response within 1 business day  
• Initial feedback or direction within 2 business days  
• Ongoing communication throughout the evaluation process  

Failure to meet these standards may impact visibility or participation. 

Funder agrees to provide ongoing reporting for all active accounts originating from the NFA platform. 

Funder agrees to: 

• Provide a detailed collections and portfolio report upon request by NFA  
• Ensure reports include, at a minimum:  
• Client name  
• Debtor status  
• Invoice aging  
• Payment activity  
• Outstanding balances  
• Reserve balances (if applicable)  

Funder acknowledges: 

• Reporting may be required on a recurring or periodic basis, as determined by NFA  
• Reporting is necessary to:  
• Validate deal performance  
• Ensure consistency with represented terms  
• Maintain platform integrity  

NFA reserves the right to request supporting documentation related to collections, fees, and account performance to verify compliance. 

Failure to provide requested reporting may result in suspension or removal from the platform. 

Funder acknowledges: 

• Clients are not exclusively assigned  
• NFA may introduce multiple Funders to the same Client  
• NFA retains the right to redirect or reassign opportunities  

This may occur in cases including: 

• Lack of responsiveness  
• Material changes in terms  
• Failure to meet platform standards  

Funder acknowledges and agrees that the National Factoring Association (“NFA”) operates as an ongoing public-facing marketplace and informational platform. 

As such: 

• NFA cannot and will not restrict a Client from independently returning to the platform in the future  
• Clients may voluntarily:  
• Conduct additional searches  
• Request updated financing options  
• Perform periodic market reviews  
• Seek alternative structures or providers  

Funder further acknowledges that: 

• A Client’s future use of the NFA platform does not constitute interference, solicitation, or improper reassignment by NFA  
• NFA does not guarantee exclusivity between any Client and Funder unless otherwise agreed directly between those parties  

Nothing in this Agreement shall prohibit: 

• A Client from independently re-engaging NFA  
• NFA from continuing to operate its public-facing marketplace and informational services  
• NFA from responding to future Client-initiated inquiries or requests for information  

For clarity: 

• NFA does not control a Client’s independent business decisions  
• Clients retain the right to periodically review financing relationships and market alternatives  

Funder further agrees that no agreement between Funder and Client shall impose restrictions on NFA’s continued operation as a public-facing marketplace or informational platform. 

As a condition of participation, Funder must submit a complete and current copy of its standard agreements. 

Required documentation includes: 

• Master Factoring Agreement and/or Broker Agreement  
• Fee schedules and addendums  
• Any supporting contractual documents  

NFA will review submitted agreements to ensure alignment with: 

• Platform transparency standards  
• Industry-standard structures  
• Client fairness expectations  

Failure to provide documentation may result in denial or removal. 

Funder agrees that: 

• Agreements used in NFA-originated transactions must be substantially consistent with submitted versions  
• Any material changes must be disclosed to NFA  

NFA reserves the right to: 

• Request updated agreements  
• Reassess participation eligibility  

NFA reserves the right to review all submitted agreements and reject participation where terms include: 

• Hidden or undisclosed fees  
• Aggressive or non-standard provisions  
• Terms inconsistent with presented pricing  

Participation is contingent on maintaining agreements aligned with: 

• Transparent fee structures  
• Reasonable industry practices  

Funder agrees: 

• Not to circumvent NFA in any transaction originating from the platform  
• Not to structure, delay, or redirect transactions to avoid NFA involvement or compensation  

Funder acknowledges: 

• NFA is entitled to compensation on any transaction introduced, initiated, or originated through the platform  
• Compensation applies regardless of:  
• Timing of funding  
• Changes in structure  
• Renewal, extension, or refinancing  
• Use of affiliates or related entities  

Survival of Obligation 

Funder’s obligation to compensate NFA: 

• Survives termination, suspension, or removal  
• Applies to all existing, pending, and future transactions derived from NFA introductions  

Funder agrees: 

• Client information is provided solely for evaluating funding opportunities  
• Data may not be sold, shared, or repurposed  

Funder is responsible for maintaining appropriate data security standards. 

Funder agrees to: 

• Operate only in jurisdictions where compliant  
• Accurately represent geographic availability  
• Maintain required licensing and regulatory standing  

NFA may restrict visibility based on compliance considerations. 

Funder acknowledges: 

• NFA is compensated by the Funder upon successful funding  
• Compensation is pre-agreed and incorporated into the Funder’s economics  
• Clients are not charged additional fees by NFA  

NFA does not offer paid placement or preferential treatment based on compensation. 

NFA may suspend or remove any Funder at its sole discretion, including: 

• Misrepresentation  
• Inconsistent deal execution  
• Failure to meet service standards  
• Regulatory concerns  
• Negative client outcomes  

Removal does not impact NFA’s right to compensation on any transaction originated prior to removal. 

In the event a Funder is suspended or removed: 

• Funder must continue to:  
• Honor all existing agreements  
• Maintain professional communication  
• Compensate NFA on all applicable transactions  

Removal: 

• Does not eliminate financial obligations  
• Does not transfer ownership of the relationship  
• Does not waive NFA’s rights to compensation  

Participation does not guarantee: 

• Lead flow  
• Deal volume  
• Funding opportunities  

Client selection determines engagement. 

Funder may present its brand but may not: 

• Misrepresent affiliation with NFA  
• Imply endorsement beyond participation  

By submitting an application and participating on the NFA platform, Funder confirms: 

• All submitted information is accurate  
• Uploaded agreements reflect actual operating terms  
• Ongoing compliance is required