You may have decided that factoring your receivables is the best option for your business, but still have not picked a finance company. One issue you need to consider is the finance company’s ability to work with your customers. The best factoring companies have the expertise to handle interactions with your customers smoothly and will offer you assurance that your customer relationships will be preserved.
Working With a Factoring Company
When your business needs cash quickly, a bank loan may not be a viable option. Traditional bank loans require a complicated application and a long period of time for approval. The process can sometimes take weeks or months. Invoice factoring offers your business a straightforward application and approval process that can be completed within days:
- You sell your open invoices to the finance company in order to collect payment before the invoices are due.
- You introduce your customers to the finance company, and the finance company will instruct your customers about the transition in payment management.
- Once you have received your cash and your customers have been introduced to the finance company, the transaction is complete. Your business does not incur debt or need to budget for monthly loan payments.
Since the factoring company will be communicating with your customers, you need to be sure you choose a firm that can ensure your relationship with your customers will remain intact.
Preserving Your Customer Relationships
Before you choose a factoring company, ask the financial specialists about their customer management policies. You only want to work with a firm that ensures a smooth transition of your invoices and will not harass your customers. A factoring company should want you to be successful, and part of that success involves maintaining positive relationships with your customers. Universal Funding provides you with a dedicated Account Executive who understands that your client relations are what keep you in business and will never act in a way to jeopardize your relationships or income.
Learn More About Factoring with Universal Funding
A factoring company should not harass your customers or make it difficult for you to continue business with them. Universal Funding can talk to you about our policies that maintain your customer relationships. Fill out our online rate form to request a no-cost consultation today.