Not only do you want quality customer service from your factoring company, but you want it for your clients as well. Your factoring company deals with both you and your clients. That is why customer service should be one of the top priorities when it comes to your factoring company. Your customers talk with your factoring company on a regular basis . If your customers are receiving poor customer service, it could be a reflection on you. And depending on how bad the service is, they might choose not to work with you anymore, causing you to lose future business.
Are you missing out on a big percentage of your accounts receivables because your factoring company is charging a high rate? If so, it might be time to switch. According to Entreprenuer.com, the average factoring rate is between 2 and 6 percent. TCI Business Capital’s factoring rate is volume-driven and customized to fit your needs. Rates start as low as a half of a percent.
When you sell your invoices to your factoring company, what percentage do you receive initially? Is it 70, 80 or 90 percent? It is a good idea to check with other factoring companies to see what they can offer you.
Are you not receiving the cash you need soon enough? The reason you choose a factoring company is so you have the cash you need as soon as possible. If your factoring company can’t provide you with that, it might be time to switch. TCI can provide you with same-day cash on your invoices. Money can be transferred to you via wire, ACH or fuel cards. We recommend ACH transfers because they are more reliable, less expensive and ensure timely receipt of funds.
Are there hidden fees that you discovered after you started factoring? Some factoring companies will charge extra for credit checks and collection services on your debtors. Be sure to also look if there are introductory rates and administration fees. These fees can add up quickly, and can make the amount of cash you receive on your invoices be less than you initially thought.
Do you want to receive funds from your invoices, no-hassle ACH wire transfers or perks like fuel cards? Maybe you want a combination of all three? Flexibility is important when it comes to how you want to receive the funds from your invoices.
Does your factoring company offer other services at no additional charge? One of the benefits of factoring with TCI is that we provide additional services at no extra cost to you. Listed below are a few:
If you are thinking about switching factoring companies because of one or more of the above reasons, here are seven questions you should also consider before making the switch. And if you have any additional questions, please contact our TCI financial experts or call 800-707-4845.