As you quickly learn in business, there are always different levels of quality in service and professionalism when working with other businesses. This is true in any aspect of business financial services, and it is also true in factoring companies. We encourage our clients to compare our services to the competition as we are confident we provide the best services in the industry.
References Available
First, the best factoring companies will go out of their way to proactively provide you references. These references demonstrate the quality of their work and their ability to deliver over time and across a wide variety of client types. We will provide references for you at our first meeting.
Examples of the sort of references that you should look for from a high-quality factoring company include those from past and current clients, their lawyers, their accountants, their banks, and any other parties with whom they transact business on a regular basis. A lack of available references should be a red flag that causes you to further investigate the company and its ability to suit your needs.
Experience and Expertise
Second, the best factoring companies will be able to demonstrate to you that they have a significant amount of experience in your particular industry. Factoring can vary significantly from one industry to the next, as the types of accounts receivables that one type of industry routinely sees may differ from those in other industries.
Look for evidence from any potential factoring company you might hire that they have the ability to understand the unique needs of a company in your industry and a demonstrated ability to deliver for businesses like yours. In business since 1997 we have experience in virtually all areas of industry and business, including factoring for government contracts.
In Person Meetings
Third, a good factoring company will always be willing to meet with you face-to-face. Though much of the actual day-to-day business of factoring might sometimes be conducted at arms’ length, good factoring service providers will invest in a new client relationship by committing to meet in person. We highly recommend a face-to-face meeting with our clients as a way to make a strong business connection.
Easy to Understand Agreements
Finally, the best factoring companies will always present you with simple, easy to understand agreements that clearly lay out the terms between the parties. A complicated, hard to comprehend contract may indicate that the factoring company is attempting to bury conditions, clauses, and terms that are more favorable to them than to you.
Straightforward agreement terms will make settling any disagreements or disputes later much more straightforward. Similarly, a good factoring company will never charge you any upfront fees and will make assessment of fees and any other financial terms contingent upon the execution of their contractual obligation and performance in factoring your accounts receivable.
While factoring offers a quick and flexible source of potential financing for early-stage companies, it is important to make sure that you are engaging a high quality provider for your factoring needs. We are confident we can be just the factoring firm you need, and we are here to prove it.
