There are many websites online claiming they can provide your business with cashflow, but who can you trust for reliable account receivable services. Well, that’s a good question. But the truth is it depends what type of account receivable service your business is looking for:
Are you looking for a one-time funding arrangement?
If so then spot factoring might be best for you. Spot factoring is a account receivable service in which you turn over one invoice for funding. Spot factoring typically comes with higher rates in the neighborhood of 3-5%. (more expensive because it is a one time arrangement)
Are you looking to deal with a slow paying customer?
How long are we talking net 30, net 60, or net 90? Keep in mind that most of the account receivable services you find online are advertising low rates for 15 or 30 days. If your customer is paying beyond that make sure you negotiate with the factoring company exactly how you will be charged if payment goes late. ( factoring companies usually add an additional 1% per 15 days)
Is your business growing fast and you need cashflow?
Know the difference between account receivable services and purchase order funding. If you are looking to get cashflow or letters of credit to pay suppliers then your are seeking purchase order funding. If you are looking to cash in your accounts receivable or sell you invoices so you can gain cash on hand then you are looking for account receivable services.
Our clients come to us with a range of requests to help fix their cashflow. Sometime life can throw you a curve ball ( a car accident or death of a loved one) we understand these things can have a tremendous effect on your accounts receivable and day to day cash flow. See the help of a reliable factoring company & read our free ebook explaining the pros and cons to account receivable services. 🙂
If your business is experiencing a strain on your cash flow give us a call toll free at 1-888-382-3766.