Small and mid-size businesses use invoice factoring as a source of cash flow. When business owners begin searching for the best factoring companies, having a list of criteria of services can make the selection process much more effective. Every business has unique needs when it comes to factoring, here are some guidelines to look for when searching for the best factoring companies to meet those needs.
Poor customer service is a deal killer no matter what product or service is purchased. The best factoring companies have customer service representatives with knowledge of the industry you are in and experience working with companies in your financial situation.
There are many factoring companies that make the claim of being the best. The reality is there are many good factoring companies to choose from. What often makes one the best for a client is the industry knowledge and credibility of the factoring company. The best factoring company for your business should have the knowledge of how your industry operates and experience in managing receivables of companies similar to your own. In industries such as over-the-road trucking, oilfield service contractors, and staffing agencies, it is important for the factoring company to have experience working with the client’s customers.
It is often the case that businesses choose a factoring company that conducts business over the phone, via email, and through online portals. The best factoring companies have representatives that answer the phone, respond to emails, and provide online reporting of all transactions related to your account. Open and available lines of communication are a must and should go both ways.
The best factoring companies have the ability to meet your funding needs as your business grows. This is also a two-way street. In order for a business to grow successfully, they must work with quality customers. Quality customers are those with good credit and payment histories. Providing services to these good customers enables the factoring company to fund your growth.
Credit analysis and risk assessment is a service the best factoring companies provide to their clients. One of the most beneficial services some factoring companies offer is the option to check credit and payment histories of potential customers and monitor the financial strength of current customers. This service gives business owners valuable insight into the viability and strength of their customers. This information is used to make strategic decisions about taking on new contracts or additional work. In the end, it’s about getting paid on the invoice and factoring companies that offer this service to their clients are often the top-rated factoring companies.
One of the key takeaways for business owners who use a factoring company is their time is freed up because the factoring company manages the accounts receivables. When payment on an invoice is overdue, the best factoring companies have accounts receivable specialists who will contact the customer and work to get the payment in as quickly as possible. An experienced accounts receivable specialist will be able to navigate and resolve any issues that hold up payment and do so in a professional manner.
The best factoring companies go above and beyond to deliver top service to their clients. When researching factoring companies, check out reviews and references. Find out how other businesses worked successfully with the factoring company. In the end, the best factoring company is the one that helps you succeed.
Since 1994, TCI Business Capital has been a leading factoring company for businesses in a wide range of industries. Our staff has the experience and knowledge businesses look when choosing a factoring company.
We take pride in having award-winning customer service, more than 20 years of experience in several industries, flexible funding programs, and back-office support like credit analysis and accounts receivable management.