We all agree, shopping around online for the greatest deal is a smart thing to do, however when is it too much when you are looking for a good factoring company. Often we get prospects who tell us they have submitted applications to multiple factoring companies. This is perfectly fine it is in your best interest to find the best rate!
Now most sales people will feel the pressure when you tell them they are not the only game in town. For a couple reasons. Obviously, they hate competition. But more importantly, they understand that few prospects have the time to manage such a large number of applications efficiently. Many times it is easy to get confused with what factoring company promised what, who has the best terms for you, and what company will work best for your business. Filling out multiple applications to factoring companies may not be the best approach.
Keep in mind it is in your best interest to evaluate each factoring company for the best outcome for you, but filling out applications like a wild man is not the best approach. The best option is to submit applications like a wild man just one day. This will be your prospecting day, after getting calls and fining out information then pass through the evaluation phase. Again do not do this if your back is against the wall, put the pressure on the factoring company not yourself.
As soon as you start to get in touch with the factoring salespeople try your best to learn from the phone call, play the field and see what options are best for you. Try the following questions to ask the factoring companies:
1. What is the largest client they can work with? What is the smallest?
2. Do you specialize in any industries?
3. How long are the contract terms for?
4. What do you know about your particular industry?
Then, based on your phone interviews, select the top company and get serious about submitting information. If you want to use competition to your advantage, there is nothing wrong in telling the sales person that you have interviewed a number of factoring companies but only applied with the top two (or three) to see who gives you the most competitive proposal. This will show that you have carefully evaluated companies and selected the top contenders. This shows that you are a sophisticated buyer and will probably get you better proposals than just sending an application to anyone and everyone you meet.