Industries
Factoring Companies Merchant Cash Advance Alternative Lenders B2B Buy Now Pay Later Marketplaces
Platform
Why Brief Arbitration Rules
Get Free Clause Request Demo →
For Factoring Companies

One clause in your factoring agreement makes every client dispute resolvable in 45 days.

Recourse claims. End-customer non-payment. Disputed invoices. These aren't write-offs. They're recoverable, if you have the right dispute resolution infrastructure.

Trusted by Ironwood Finance. No upfront fees. Claims up to $500K.

🧾
UNPAID
AWARDED ✓

~45 days. No attorneys required.

You funded a receivable. The end-customer didn't pay. Now what?

Your client gave you the invoice. You advanced the capital. The end-customer disputed the delivery, the quantity, or conveniently "never received" the goods. Now your client is non-performing on the recourse, and you're deciding whether to send a collections letter or call your attorney.

Here's what that decision actually costs:

  • Collections agency: 25–40% of recovered amount (if they recover anything)
  • Small claims court: Capped too low, slow, and only works if you can prove jurisdiction
  • Full litigation: $15,000 in attorney fees to recover a $30,000 receivable. The math doesn't work.
  • Write it off: You lose the capital and set a precedent that recourse is unenforceable.
There's a fourth option. You just haven't had it before.

Brief turns your recourse clause into a recovery engine.

Add Brief's dispute resolution language to your standard factoring agreement. From that moment, every client dispute has a defined resolution path: online filing, document review by a bar-recognized E-Judge, binding award in ~45 days.

No attorneys required. No court dates. No conference rooms. Your client submits their recourse position, the end-customer responds, Brief decides.

The award is court-enforceable. You can domesticate it and convert it to a judgment. Ironwood Finance does exactly this.

How Brief Works for Factoring

1
Add clause to factoring agreement (one-time setup, free)
2
Dispute arises (recourse, non-pay, invoice dispute)
3
File claim online, upload invoice, contract, proof of delivery
4
E-Judge reviews all submissions
5
Binding award issued in ~45 days. Court-enforceable. Done.

"Ironwood Finance uses Brief to resolve MCA and factoring defaults, getting binding awards that we domesticate into enforceable judgments. Brief gives us a recovery path on disputes that would otherwise require expensive litigation or a write-off."

Ironwood Finance | Alternative Finance | MCA and Factoring
~45 daysto resolution
70–90%less than litigation
Courtenforceable awards

Brief is the dispute resolution infrastructure that Ironwood Finance built into their standard agreements. When a dispute arises, the process is already in place.

What you're leaving on the table right now.

Run the numbers on your portfolio.

ScenarioTraditional ApproachTraditional CostWith BriefBrief Cost
$40K recourse claimCollections agencyLose 30% + timeBrief arbitration~$1,500 + recover fees
$75K end-customer disputeAttorney + litigation$15,000–$25,000Brief arbitration~$2,500
$120K invoice disputeWrite-off or litigateFull loss or $30,000+Brief arbitration~$3,500
10 disputes/year at avg $50KCurrent approach$50,000–$150,000 in fees/lossesBrief~$10,000–$15,000

Traditional Approach

$40K recourseLose 30%
$75K dispute$15K–$25K fees
$120K disputeFull loss or $30K+
10 disputes/yr$50K–$150K

With Brief

$40K recourse~$1,500
$75K dispute~$2,500
$120K dispute~$3,500
10 disputes/yr~$10K–$15K
Brief fees can be recovered as part of the award. Your cost of resolution may be effectively zero.

Brief was built for exactly this.

📄

Document-Only Matches How Factoring Works

Factoring disputes live in documents: invoices, purchase orders, delivery confirmations, recourse agreements. Brief's process is built around document submission, not testimony. Your evidence is already in the files.

45 Days Matches Your Capital Cycle

Your capital is deployed. Every day a recourse dispute sits unresolved is a day your liquidity is frozen. 45-day resolution isn't just convenient, it's capital efficient.

💰

No Attorneys Means Higher Net Recovery

When you litigate a $50K recourse claim and spend $20K on attorneys, you've already lost 40 cents on the dollar before the outcome. Brief keeps your net recovery high because the process cost is low.

The clause is free. Here's what it looks like.

Brief provides a free, customizable arbitration clause you can add to your standard factoring agreement. It takes five minutes. Your legal team can review it.

factoring-agreement-clause.txt
DISPUTE RESOLUTION Any dispute, controversy, or claim arising out of or relating to this Agreement, including any breach thereof, shall be resolved by binding arbitration administered by Brief (thinkbrief.com) in accordance with its Arbitration Rules. The arbitration shall be conducted online, and the award shall be final and binding and may be entered as a judgment in any court of competent jurisdiction.

This is a simplified example. Brief's full clause language is available free, and our team can help customize it for your factoring agreement.

What factoring companies ask before they sign up.

Most don't realize they already have. When a factoring agreement includes a Brief arbitration clause, clients sign the agreement. The clause is standard contract language. What changes is that now you have a defined, cost-effective path when something goes wrong.
Brief operates nationally. E-Judges are assigned by jurisdiction and subject-matter expertise. Brief handles cross-state factoring disputes routinely.
AAA filing fees start at $2,000. AAA arbitrators bill $300–600/hour. An average factoring dispute through AAA costs $10,000–$30,000 and takes 6–18 months. Brief resolves the same dispute for $500–$2,500 in 45 days. For portfolio-level recovery, the math is not close.
Yes. Brief is designed for volume. Ironwood Finance uses Brief across their portfolio, not just for individual disputes. There's no limit on the number of active cases.
Brief handles monetary and contractual disputes. Recourse claims based on non-payment, disputed delivery, or breach of contract terms are squarely in Brief's scope. Complex insurance subrogation is outside Brief's scope.
Brief's process has defined response windows. If a party fails to participate, the E-Judge may proceed on the evidence submitted and issue a default award. The award carries the same legal weight as a contested award.

Your next recourse claim is already in your portfolio.

You don't know which invoice will go sideways. That's exactly why the clause needs to be in every agreement, not just the ones you're worried about. Add it once. Cover every future dispute.

Request a Demo → Get Free Factoring Clause

No upfront fees. Takes 15 minutes to see how Brief works for factoring companies.

Scroll to Top