Once you’ve made the decision to factor, finding the right factoring company can be a time-consuming task. There are many factoring companies to choose from, so here are some things to look for when sorting through the noise.
Upfront and Honest Communication
The best factoring companies will give you the information you need to make an informed decision. Look beyond the initial price quote, and take the time to ask questions. The factoring representative should provide you with an open and honest discussion of any costly features of the factoring contract. These factoring companies will have dedicated representatives that will help you every step of the way.
Flexibility
Having your choice of which invoices to factor is a key feature to look for in a factoring relationship. The flexibility to factor on your own timeframe is also a crucial benefit to be considered. Watch out for factoring companies that lock you into long contracts without regard to your company’s needs. These contracts can keep you factoring after you no longer want to, even after your cash flow has improved.
Thorough and Fast Communication
This is your money. The last thing you want is a lack of communication keeping you from factoring an invoice. Look for factoring companies that are responsive to your communications and have a personal touch to interactions. These companies should also have years of experience, and be able to point you to successful client case studies.
A Workflow That Works for You
The factoring company you choose should work as fast as your business. Take some time to meet the management and administration prior to signing the contract. People make the difference, and no two factoring companies are the same in terms of policies and procedures.