5 Tips When Considering an Invoice Factoring Company
When looking to improve your company cash flow without adding debt, invoice factoring may be the best direction to take your business.
If you are new to invoice factoring or you are looking for a new factoring company, here are a few tips to consider when looking for the right fit.
1. Cost to Factor Your Invoices
Comparing rates is important but you must take into consideration what level of services you will receive for the price from your invoice factoring company. Steelhead Finance offers a variety of services beyond cash flow maintenance to assist your business operations.
2. Check the Contract Length
You should carefully consider the time period of your agreement. Find a company that does not lock you into a long term contract. If you have intentions to grow or potentially make business model changes, avoid contracts that bind you for 12 months or more when factoring your invoices.
3. Talk to Existing Clients
When looking for the right factoring company to fit your business needs you may ask to speak to some existing clients. This will give you an idea as to how the factoring company's processes work and how well they work with their clients. If the factoring company can't or won't provide references, you may want to look elsewhere.
4. Understand the Collection Service
Comprehending the collection process is important. Ask what the average collection period is. Steelhead Finance prides themselves on their ability to collect outstanding invoices. You will be working with the same account representative to ensure they personally understand your business.
5. Termination Clauses
Find the fine print that explains how easy it is to get out of a contract or agreement with a specific invoice factoring company if you decide to make changes. Is there a penalty period or fee? You may want to find a factoring company that employs a 90 day termination notice on average to make sure all paperwork gets finalized.
It is vital to know as much about the accounts receivable financing company before you make your decision. Performing your due diligence can save you time and money in the long run. Find the factoring company that displays business strengths that work best for you and your company.
If you are new to invoice factoring or you are looking for a new factoring company, here are a few tips to consider when looking for the right fit.
1. Cost to Factor Your Invoices
Comparing rates is important but you must take into consideration what level of services you will receive for the price from your invoice factoring company. Steelhead Finance offers a variety of services beyond cash flow maintenance to assist your business operations.
2. Check the Contract Length
You should carefully consider the time period of your agreement. Find a company that does not lock you into a long term contract. If you have intentions to grow or potentially make business model changes, avoid contracts that bind you for 12 months or more when factoring your invoices.
3. Talk to Existing Clients
When looking for the right factoring company to fit your business needs you may ask to speak to some existing clients. This will give you an idea as to how the factoring company's processes work and how well they work with their clients. If the factoring company can't or won't provide references, you may want to look elsewhere.
4. Understand the Collection Service
Comprehending the collection process is important. Ask what the average collection period is. Steelhead Finance prides themselves on their ability to collect outstanding invoices. You will be working with the same account representative to ensure they personally understand your business.
5. Termination Clauses
Find the fine print that explains how easy it is to get out of a contract or agreement with a specific invoice factoring company if you decide to make changes. Is there a penalty period or fee? You may want to find a factoring company that employs a 90 day termination notice on average to make sure all paperwork gets finalized.
It is vital to know as much about the accounts receivable financing company before you make your decision. Performing your due diligence can save you time and money in the long run. Find the factoring company that displays business strengths that work best for you and your company.
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