How to Choose the Best Factoring Company
Invoice factoring is a great way to release the working capital tied up in your sales ledger giving your business the opportunity to secure the funding you need for expansion, purchase of additional raw materials, payroll, or simply cover day-to-day operating expenses.
But all invoice factoring companies are not the same. Indeed, some invoice factoring companies work on significantly different terms and conditions than their competitors. And, of course, some factoring companies have better reputations than others, too.
Selecting a factoring company for your business is a big decision. So, it is advisable to do your due diligence before choosing the factoring company that is best for your organization. The best factoring companies will work with you to find an arrangement that suits both parties.
How Well-Established is the Factoring Company?
There have been occasions when factoring companies have gone out of business, leaving their clients with an instant cash flow problem. So, it is advisable to do some background checks before signing up with a factoring company. For example, how long has the company been in business, and how is it funded? And, it is a good idea to ask for references from customers in your sector and research online reviews of the company.
How is the Factoring Account Administered?
You will likely be dealing with your chosen factoring company every day. New invoices will need to be submitted for financing, there might be queries raised on some of those invoices, and there will also be the late payers to be discussed. So, it is advisable to ask how these day-to-day tasks will be administered. For example, will you have a single account manager assigned to you? What is the process for submitting invoices? And does the company offer an online account management portal?
Can You Work with the People?
A crucial consideration when selecting a factoring company is the people. Because, unlike most other finance providers, you will need an excellent day-to-day working relationship with a factoring company. Indeed, getting the factoring deal that you want is only the beginning. You will then have to work daily with your factoring company. And, your customers will have contact with the factor’s team, too. So, it is essential that you feel confident that you can work in partnership with your chosen company.
Why Choose Universal Funding?
Universal Funding Corporation is the right partner for you because we are there when you need us, whether you only need us once or in an ongoing capacity. We understand the need for reliable cash flow and opportunities for growth generally come with tight timelines. And unlike many other factoring companies, we can have funds in your hands in a matter of days.
Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We believe your business deserves a personal evaluation to determine the right financing approach. We take the time to learn about your business to get a clear understanding of the challenges you face and the growth opportunities that will take you to the next level.
Our expertise and tailored financial solutions offer many benefits:
- Fast funding, typically within 24-48 hours
- Get access to your cash tied up in unpaid invoices
- Your credit is not the key determining element
- Selling your accounts receivables will not influence your credit negatively
- Eliminate the typical 30-90 day wait for payments
- High advance rates and low factoring fees