All those people and truckload of toilet paper… with the back open. Be careful out there!
Here’s a fun game. Will these vehicles clear the bridge or not? Some feel quite confident that they will. Let’s tally the Cleared vs the Crashes.
CHOOSING THE RIGHT FACTORING COMPANY
Searching for the right factoring company takes a little extra diligence but can definitely be time well spent to avoid headaches later. A little homework can go a long way so you don’t end up settling on a factoring company that may not be the best fit. We have a few key items to look at that go beyond just the factoring fee so you can make the best decision for your company.
DO THEY HAVE EXPERIENCE?
A critical component when it comes to finding a quality factoring company is experience. You want to look for a company that has history in working with businesses like yours and has been around for a decent length of time. Although, just because a factoring company is new to the scene doesn’t make them an inadequate option, but they haven’t necessarily invested the time dealing with the many aspects of what and how your industry operates. The more they know and understand, the smoother the process of funding will be and the lower your overall risk will likely be.
HOW FLEXIBLE ARE THEY?
We all love a little flexibility in our options. It is recommended that you choose a factoring company that allows you to choose which customers you’d like to factor. Stay away from terms that require you to factor your entire book of customers. If you have a customer that pays you fast already, you may not want to pay a factor fee on that. Always look for a factoring company that can provide you with the program that will serve your interests best, not the other way around.
WHAT DOES THEIR CREDIBILITY LOOK LIKE?
If you’re going trust a company to ensure you are getting paid on time, make sure they have a positive reputation in the industry. We live in a world that is easily defined by reviews so it shouldn’t take much to find what other are saying about the factoring option you are looking into. While a few negative reviews are common; you’ll want to make sure the positive reviews outweigh the negative. Examine how the factoring company responded (if they responded) to the negative reviews.
Look for a company that is part of an association like the International Factoring Association (IFA). Typically these associations vet out the companies they work with.
WHAT CUSTOMER SERVICE RATINGS DO THEY HAVE?
It’s easy to look at the price-tag before looking at the value but the level of customer service is so critical when choosing a factoring company. You should be building a relationship with a dedicated customer service representative, so they gain a strong understanding of how you and your business operate. The factoring company will not only be interactive with you and your team, but also your customers. You’ll want them treating your customers the way you would treat them. Checking a factoring company’s referrals and reviews can help in this department.
DO THEY ALLOW YOU THE ABILITY TO GROW?
As your company grows, so will the number of invoices and your funding needs. Can the factoring company handle your needs of tomorrow? What’s their largest client size? Is there a limit to the quantity of debtors they can take on? An invoice factoring company that has been around for several years will usually have the ability to handle larger capacity. Can they grow with you?
Factoring is a great way to free up working capital to pay bill and staff faster. A little research on the front end will allow you to find an invoice factoring company that provides the transparency, flexibility and customer support that best fit your company.
If you’re in the process of looking or simply have questions, we’d be happy to help. Give us a call: 800-727-3377.
This 12 year old girl takes a fully loaded truck over a bridge that looks like it was put together in five minutes.
This mail driver’s truck takes off moments after he leaves it running and steps out to make a delivery.
Maybe a Little Overloaded?