All factoring companies are in business to pay you in advance on your invoices, but the similarities stop there. Knowing what differentiates those companies – and choosing the factoring company and the factoring program that is best for your business – can make all the difference in your company’s well-being and success. With a little research you can find the best match for your business.
Ask about a factoring company’s collection services
Following up with clients about outstanding invoices and payments can be a time-consuming job for any small to medium-sized business owner. Look for a factoring company with an in-house collections department that will handle your collections for you. You can save time and money right away.
Find out if the company offers an online account management system
Leading factoring companies have invested in online systems for their clients so that they can easily submit funding requests, check collections and get a bird’s eye view of their financial situation. These systems can save you a significant amount of time each month — time that can be spent building your business.
Request quotes for your factoring rate and advance rate
All factoring companies charge a fee for their services and in this industry, that fee can vary widely. In addition, the percentage of your invoice that a factoring company will advance you can vary. Ask up front about both of these rates and any additional fees; some companies have “hidden fees” that can change the true expense.
Research the company’s customer service
Who will you be working with at the company? Will you have to call lots of different departments to get answers to your questions? How long will it take before someone calls you back? Look for fully staffed companies that will assign your account to your own dedicated account manager as your single point of contact.
Ask about the company’s history and benefits for clients
To get on the road to success, you want to partner with well-established, well-funded companies that belong to professional organizations and adhere to those standards. Strong companies that have been factoring for years often offer significant benefits and valuable services for their clients to help them save time and money.
If your company needs immediate cash, then factoring could be a great solution for you. Do your homework and you will find the right partner to help you succeed today and grow your business tomorrow.
For more information about how Interstate Capital can help you take your business to the next level, request an instant factoring rate quote now. We are here to help you make the best financial choices for your business.