How to choose the best factoring company for your businessPosted by Workman Kristensen on June 10th, 2021 Finding the best factoring company is not always easy as there are so many different ones to choose from, ranging in size and expertise. No two factoring companies do things exactly the same way, they specialize in different industries and offer different terms. Most do not take just any kind of business. They focus on a specific industry such as staffing or freight companies. However, once you find the best invoice factoring companies that cater to your particular needs, here are the critical variables you should take into consideration before moving forward. best factoring companies for freight brokers Service fees. Usually, these fees range from 1 to 6% based on the creditworthiness of your customers and when the invoice is paid. You’ll also want to find out what percentage the factoring company will advance on your invoices. Typically, factors provide 75 to 90% of the invoice value upfront. Also, make sure to enquire about deposits or application fees. Invoice management. Make sure to find out how the company deals with unpaid invoices? Do they take on all the risk and provide credit protection if the invoice is not paid, or the customer goes out of business? How will the factoring company interact with your customers? Contact with the customer in this industry is pretty typical and this practice is largely accepted by business, but make sure you understand if the factoring company you are speaking with does this and if so how they do so.Like it? Share it! |