All factoring companies are in business to pay you in advance on your invoices, but the similarities stop there. After you make the decision to start factoring, you owe it to yourself to work with professionals who are committed to understanding your unique business needs and helping you meet your goals. Knowing what differentiates invoice factoring companies – and choosing the best factoring company and factoring program for your own business – can make all the difference in your company’s well-being and success. Save time in your search for a factoring partner: study the chart above for 15 points of comparison that apply to a sample of the hundreds of factoring companies operating in the United States and Canada.
Is my industry suited to Factoring?
Industries Serviced:Some factoring companies work with businesses in a number of industries; other companies specialize in only one business. A company with a high level of diversification is ready to bring the best practices of different industries into the mix when customizing factoring programs. Typically these companies have industry specialists with years of experience with companies in your field.
Does size count when choosing a factoring company?
Number of Factoring Specialists: Size does count when you are looking for a one-stop-shop with professionals in every area of factoring services: account management, collections, underwriting, invoice processing, and other departments. A company with a large staff indicates stability, experience, and a track record of growth.
What standards should a Factoring Company be accredited for?
BBB Rating and Accreditation: For more than a century, the Better Business Bureau has set ethical business standards for its members and helped people across North America identify trustworthy businesses to work with. An A+ rating indicates a business has been recognized for its integrity and performance.
Is length of service something to consider when choosing a factoring company?
Length of Service: A company that has been in business for more than 20 years has stood the test of time. It has a history; it has experienced leadership. Its staff and operations processes have weathered dramatically different business cycles and it can be expected to be in business well into the future.
What benefits should I expect from my Factoring Company?
Advance Rates: One of the most important benefits to consider when selecting a factoring company is the size of the advance – do they provide up to 75% of the funds owed you? 85%? 95%? A company that advances up to 100% gives you increased cash flow upfront. You don’t have to wait for the balance of your funds.
Can I get a same-day factoring quote?
Instant Online Factoring Rate Quote: Factoring quotes are determined by industry, business size, dollar volume of projected invoices, and other variables. When you are ready to see a factoring company’s rate quote, it’s helpful to see a quote generated right away, regardless of time of day or night and without waiting to speak with anyone.
Can I have online access to my Factored invoices?
24/7 Online Account Access: Today people are accustomed to the convenience of managing their business and personal financial activities online. Factoring companies that provide easy-to-use online accounts let clients see exactly where they stand in their invoices and payments around the clock and wherever they are.
Where can I get a tailored factoring program for my trucking business?
Transportation Specialists: Motor carriers have unique financial challenges that make them a very good fit for factoring. A factoring company with specialists in trucking based on the size of the business, from small (one to four trucks) to medium and large operations, can provide tailored factoring program that address each group’s distinctive needs.
Do factoring companies offer quick pay and fuel advances?
Freight Broker Specialists: Many of North America’s freight brokers depend on factoring to offer quick pay and fuel advances to their carriers. Factoring professionals with years of experience working with freight brokers understand their business and can efficiently help brokers save time and money and grow their companies.
Are pre-approved funds offered by factoring companies?
24/7 Fuel Advances: Truckers work around the clock and their factoring company’s fuel advance program should be available at all hours, too. Factoring companies that provide pre-approved funds to add to their clients’ fuel cards help truckers take on new jobs and stay on the road.
What discounts do factoring companies offer?
Fuel Cards and Discounts: Convenient, easy-to-use fuel cards that include discounts at the pump are among the most popular bonus services that a factoring company can offer motor carriers and freight brokers. Truckers can easily save hundreds of dollars a month with per-gallon fuel discounts.
How important is TIA membership when choosing a factoring company?
TIA Membership: The Transportation Intermediaries Association, the premiere professional organization for the freight brokerage industry, promotes the highest ethical standards among its members. Factoring companies that belong to TIA maintain those standards and keep up with the latest developments in the third-party logistics industry.
What customized programs do factoring companies offer?
Staffing Specialists: Staffing agencies, large and small, need experts in their areas. A factoring company with experts in different staffing areas, including temporary and contract medical, office, construction, oil field, information technology, janitorial and maintenance staffing, can provide customized factoring programs.
What added benefits can I expect from my factoring company?
Payroll Support for Staffing Companies: Some factoring companies offer added benefits and services to their clients, such as equipment financing for transportation companies and back office payroll processing for staffing companies. This payroll function can save time and money for staffing agencies that need it.
Can I expect 24/7 financing support from my factoring company?
Funding Available 24/7: Being able to meet the financing needs of your business in a timely manner is a high priority item. Therefore, we have evaluated factoring companies that are able to help you at any time, during weekends, holidays, and even at night! It is important to have a 24×7 factoring partner that can work with you around the clock to meet your financing requirements.
Financial services professionals know that many elements will go into your selection of an invoice factoring company. It’s a decision carrying the potential of significant future financial growth for your company – and it also determines who will be among your most important partnerships in your day-to-day operations. Since 1993, more than 10,000 companies have decided to work with Interstate Capital to speed up cash flow and grow their business. Interstate’s dedicated account managers and award-winning funding team are ready to help you get paid now, without waiting weeks or months for customers to pay. Let us help you succeed soon.
The chart above looks at a small sample of factoring companies. Would you like to hear how your current or prospective factoring company compares to Interstate Capital? Contact Interstate’s friendly factoring professionals today for insights that can help you make educated decisions about invoice factoring options.
It all starts with a factoring rate quote, available to you in seconds!