Working With Business Factoring Companies
Use US factoring companies to help you build your businessYour accounts receivable are a valuable part of your business; you can sell them to factoring businesses who will give you a percentage of the total up front and the balance -- minus a fee -- after they receive the money from the customer. There isn’t any waiting to get the payment from your customer and no need to seek a loan. Best of all, if you’re a new business, your customer’s credit is the basis, instead of yours.
Working with business factoring companies means understanding the advance you’ll receive, the fees involved and the final amount you’ll get. You also need to select invoice factoring companies that’ll let you choose which invoices you want to factor and the length of time you’re committed to factoring them.
You can try to locate an invoice factoring directory, which will help you make these decisions, or consider the following when working with business factoring companies:
1. Select a factoring company that will pay you the largest percentage of your accounts.
2. Find an accounts receivable factoring company that has a low fee.
3. Choose a small business factoring company that specializes in buying invoices from small businesses.
4. Check out national factoring companies that guarantee 24-hour financing.
Locate a factoring business that gives you the most up-front money
Choose a business financial factoring company that charges a low factoring feeUS factoring companies have fees as low as 1% and as high 5% of your receivables. Select a factoring company that charges 2% or less in order to find the best prices for your factoring needs.
Find an accounts receivable factoring company that caters to small businessesFactoring companies that specialize in factoring to small businesses are more likely to give you more personalized service, better rates and higher advances. Find the one that will service all your needs.
Select a factoring company that guarantees a speedy turnaround timeSome factoring businesses assure you of a fast turnaround time. Find one that offers this service to see if it meets your other requirements as well.
- When working with business factoring companies, you need to understand whether the accounts receivable factoring company you picked uses recourse or non-recourse. Recourse means that the factoring company can sell the invoice back to you if no one pays it within a certain amount of time. With non-recourse, the factoring company absorbs the loss.
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