When your business is looking for alternative funding strategies that go beyond traditional bank loans, one of the most popular financing methods that have emerged over the past few years is invoice factoring or accounts receivable financing. Here is a quick comparison of the top 10 factoring companies, according to TopTenReviews.com.
TopTenReviews analyzes each of these companies and provides rankings based on fee structures, features available, and the help and support provided by the company. (List updated as of December 19, 2017.)
How to Choose the Right Factoring Company
For most business owners, deciding who to work with for invoice factoring can be a bit overwhelming. After all, how do you compare the different fee structures, costs, and features available? The best advice from experts is to choose a company that:
- Offers fast approval times
- Charges low rates and has no hidden fees
- Can provide you with funding quickly
- Has no long-term commitment requirements
- Offers great customer service for both you and your customers during the collections process
- Works with companies from a wide variety of industries
Business News Daily has compiled this excellent write-up, “Factoring: What It Is and How to Choose a Service”, providing detailed information about choosing the right factoring company for your business.
Fees and Features
Making the most of factoring services means choosing a company that will provide you with the cash you need and won’t charge a significant fee in the process. Some companies charge additional fees beyond just the cost of purchasing the invoice, which may include application fees, startup fees, and termination fees.
There are also several features to consider in your search for the right factoring company, including online applications and approval processes, the ability to get cash in as little as 24 hours, and the flexibility to sell as many or as few invoices as you prefer without having to meet minimum requirements. Also, understand whether they require a long-term commitment or you can sell invoices only when you need to.
Benefits of Factoring Services
Owning a business is hard work, especially when you have to balance the costs and needs of running your company with the influx of cash and availability of working capital. When budgets get tight, factoring offers you the flexibility to turn an existing asset into immediate cash.
The factoring process is simple and it provides you with a great opportunity to leverage your existing sales and accounts receivable to pay expenses you have right now—including payroll, utilities, equipment purchases, and marketing campaigns.
The Importance of Quality Customer Care
Factoring Club says it best, “accounts receivable factoring is a service as much as it is a financing tool, so you need to make sure you find a factoring company that offers good customer service”. Working with a company that has a good track record of providing high-quality customer service is critical. Since you are going to turn over the collections process to this company, you want to make sure they will treat your customers well and won’t harm the good relationships you have built over time.
Find the Right Factoring Company
Talk to Universal Funding today to find out more about our factoring services, low fees, and great customer service. Experience first hand why we are a top rated in our industry. Give us a call at 1-800-405-6054 or fill out our simple online rate form to get more information.