Below we have included some points to consider when picking a factoring company. However keep in mind you must make the best decision in regards to your industry. These tips will greatly help your decision, post a comment on the bottom is you would like to add something we may have missed:
1. Ask the size of their clients/ client base – you do not want to be the factoring companies largest or smallest client. Simply because they may not have the ability to handle a firm of your size, or you may be too small of a factor for them to focus on.
2. Find out what industry they specialize in- Many factoring companies have experts in specific fields. If you are an aircraft parts broker, what can a freight bill factoring expert know about your industry? At NeeBo Capital we pair you with a professional in your field.
3. Know the terms- Many business owners overlook contracts because they need the cash flow immediately and like the rates offered. However all factoring companies have different terms. Be aware of credit limit charges, and miscellaneous fees.
4. Location- Know the location & hours of operation of your choice factoring company. If you do business on the east coast you have to understand a factoring companies staff on the west coast won’t be in the office until noon your time. Especially if your factoring company is dealing directly with your customers.
5. Do they work with you- before you start a factoring invoices agreement make sure they are willing to work with you. Ask the company for references, and trust your gut whether they are working with you or just want more business.
Please feel free to add to the list…