An easy way to help grow your business and free up your time to concentrate on other aspects of the business is to acquire factoring services. Factoring is a financing option that is often quicker, simpler and more flexible than borrowing from a bank. So often your cash is tied up in your invoices – and waiting to get paid and making countless collections calls is holding back your company. When you sell your invoices to a factoring company, you will receive a high percentage of what you are owed promptly, rather than wait for your customers to pay in 30, 60, or 90 days. You can keep your business going and growing, without incurring any debt whatsoever.
If you’re considering factoring, spend time researching factoring companies to find the one that can offer your company the best range of services. Here are some points to consider:
- Customer Service
You must remember that once you sell your invoices to a factoring company, their in-house collections professionals will be collecting from your clients on your behalf. Make sure you choose a company with a good reputation by checking their references and customer reviews. The company’s customer service is also important: you want a factoring company with knowledgeable, friendly people who will listen to you and offer you all the support you may need.
It’s important to pay close attention to the fine print in your proposal. Take note of any additional charges and ask upfront about anything you don’t understand. What appears to be a factoring service with a low factoring percentage rate could turn out to cost you the most when you start to add in their “hidden” fees and add-on expenses. Compare proposals from different factoring companies to see how their fee structures work.
- Industry expertise
Find a company with experience in your industry. While the process of factoring invoices is standard, different industries have varying needs. In many cases, factoring experts for your industry can provide extra services and benefits. For instance, if you are in the trucking and freight industry, look for a factoring company that offers fuel advances and fuel discount cards.
Depending on your cash flow needs, you may not want to factor all your invoices, all the time. You may have some clients who pay right away or you may have seasonal variances in your operating expenses. Many factoring companies are able to offer you the flexibility you need.
With nearly 25 years of factoring experience across a range of industries, Interstate Capital provides trusted solutions for a wide range of industries, including manufacturing, transportation and staffing. Their dedicated team of professionals offers the personal attention you need and expect for your business. As one of the largest and best-funded independently owned factoring companies, Interstate Capital is able to make decisions fast without outside interference. For more information about the factoring services that we provide and available choices, get an instant factoring rate quote today.