Sellers should consider how much they are giving up on a monthly basis, and whether they can live with that amount. Sometimes, a better deal for the seller is actually to sell payments that come due farther in the future. However, such farther-off payments are not worth as much today, so it might look like it is not as good a deal as selling payments due sooner. In this example, the pricing and discount rate are deceptive. A higher discount rate, but selling payments not needed for monthly expenses (a lump sum due several years in the future, for example), may well be the best decision.
Sellers should also take care to deal with reputable factoring companies that will be knowledgeable about the process and help them choose the best options for them.