In order for invoice factoring to be successful for your company, it is important to find and work with the right invoice factoring company. What does the ‘right factor’ look like? Well, that depends on your needs.
As with any other company in any other industry, factoring companies are all different. They each have their strengths and weaknesses. Some offer more products and services, but lack in customer service while others offer fewer services, but spend the time working with you to ensure that their products meet your needs. When selecting a factoring company, you will need to weigh these strengths and weaknesses to see which one works best for you. However, there are some universal criteria you can use to stack factoring companies up against each other.
Criteria to Consider When Researching Factoring Companies
Fees: A reputable invoice factoring company will disclose their fees and will not charge you for things outside of their fee schedule. They should be up front about which fees apply to your situation and under what circumstances these might change.
Penalties: A reputable company will also be up front about penalties that can be assessed as well as describe in a straightforward manner when these penalties would be applicable. You should receive this in writing.
Reporting: If you are liable for uncollected invoices, you will want to know when invoices sell and which ones are lingering in order to ensure that you are prepared to pay for those. Make sure that your factoring company provides reporting and know when these reports are due.
Experience: While it is important to note that many startup companies can provide excellent service and great products, it is usually best to go with a more established company that has more experience in the business.
If you are ready to work with the best factoring company that excels in these 4 areas, give Universal Funding a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.