What to Look for When Choosing a Factoring Company

Unpaid invoices can be converted into cash in as little as 24 hours using invoice factoring. When compared to traditional bank loans, which can take months to get approved, and you may not have the creditworthiness to get funds quickly if you are a new business owner, invoice factoring help you quickly.

In the United States, invoice factoring is used as a source of financing by thousands of businesses. If you are considering factoring to assist your business with financing, our team will assist you in understanding advance rates and factoring fees.

The GO Funding team understands the differences between Factoring Companies and assists you in finding the partner who will meet your specific needs and goals.

As a GO Funding client, our team assists you in understanding:

Different Factoring Fees

The cost of factoring is represented by factoring fees. Factoring companies charge fees based on the volume of invoicing the client commits to factor each month, the credit and payment history of the client’s customers, and the length of time the customer takes to pay the invoice.

A company will receive the best factoring rates if it has a high volume of invoicing each month spread across a number of customers. Businesses that focus their work or services on a small number of customers may be riskier, and their rates will reflect this. To learn more, check out: Understanding Factoring Fees.

Industries Served by Factoring Companies

When comparing factoring companies, one important factor to consider is the factor’s industry knowledge. Factoring companies are classified into two types: general factors and niche factors. General factors serve clients from various industries with no specialization in any field. While these factors may offer competitive rates, their knowledge of your industry may be limited. This can have an impact as the business changes or evolves.

Niche factoring firms focus on serving clients in specific industries. They better understand the work, billing, and payment processes. This is extremely beneficial to the client and facilitates the transition to factoring. When researching and speaking with a factoring company, inquire about their industry experience and knowledge.

Factoring Service Comparison

Factoring companies provide various services to their clients to add value to the factoring relationship. What distinguishes one factor from another is the value-added services. Among the most common value-added services are:

· Online Reporting

· Collections

· Electronic Invoice Uploading

· Same-Day Funding

Most factoring firms provide some or all of these services. Ask about these services and any associated fees for using them.

Partnering with GO Funding is that our experienced team understands the differences between the factoring organizations. With our team supporting you, we will identify the top factoring companies that offer the services you need and the fees that benefit your business and help you achieve your goals.