A small to large business can occasionally have cash flow issues because of the time gap between providing products and services and the payment of the invoice. To solve this problem when the company doesn’t have the financial ability to make payroll and meet financial obligations because of this gap, top factoring companies become a true asset to the business.
However, not all factors will rank in a list of top factoring companies, so finding out about the factor is important. Once you do find a top company, you have a reliable, dependable, and cost-effective option to address short-term cash flow needs in times of growth, during large projects and orders, and to take advantage of incentives for early payment of suppliers.
One of the biggest characteristics to look for in top factoring companies is competitive rates. This will be true regardless of the size of your business and regardless of the amount of the invoices you are selling to the factor.
In addition to the rates, be sure to check out any additional fees the factor may charge as these often add up to significant extra charges.
Customer Service and Support
The top factoring companies are there to provide support and value-added services for their clients. This includes managing the accounts receivables they hold, but also providing ? what is the rest of the sentence supposed to say?
No Hidden Costs or Fees
The top factoring companies don’t have hidden fees of any kind. This means you don’t have a fee for the application, for termination of the factoring serviceor for due diligence or preparing reports.
This allows your business to effectively budget and plan based on the amount that you know will be provided both in the initial wire transfer as well as in any residual balance after the factoring company deducts their clearly stated fees.
No Contracts or Volume Requirements
There are some factoring companies that require a minimum dollar value or volume of accounts receivables to be factored each month, quarter or annually to receive lower rates for the service.
Other companies do not have these requirements, which frees up the business to determine how much, or how little, of the value of their accounts receivable to factor.
Understanding of the Industry
With the top factoring companies, there is a dedicated team of professionals with extensive experience both as business professionals as well as in areas of business finance. They will also have an in-depth understanding of the industries they serve, allowing the factor to not only maximize the amount they can fund but also to provide additional important services and support for their clients.
The top factoring companies will have a proven record of customer satisfaction and will be highly recommended by their current and past clients. These companies will also be happy to talk to you about your needs and provide the services to help your cash flow challenges.