To keep my cash flow, I usually use the service of accounts receivable factoring companies to process my invoices. Just like any financial decision in a business, choosing the best factoring companies can be difficult. To make the process easier, I always look at important characteristics and eliminate potential companies that do not fit them.
Professional and friendly service
The factoring company that makes us feel comfortable to work with them should provide not only professional but also friendly service. They must be capable in what they are doing. At the same time, they should be willing to guide us through the process in a friendly and helpful manner. As a customer, we will continually need support from the company. To ensure that the factor has a professional reputation, always ask for past clients’ testimonials.
Make sure that each company clearly explains their systems and terms before we decide which factor to choose. In any business, reading detailed requirements and thoroughly understanding the context is a must. Don’t hesitate to ask about these. As far as I know, all good companies are very happy to explain their complete terms.
There are different kind of account receivable factoring products and services out there. When we ask the company to explain their terms in details, we should also ask them to explain their available products. It is better to read some about it before going, though. It will be very helpful to decide the right factoring company that offers the most suitable product for our needs.
Credit control process
Companies have different ways of handling the credit control. Find out the necessary information about how they will inform our clients about the factoring process and the manner they will use to contact them in relation to payment. Ask about a dedicated controller and the number of clients the factoring company has. The most important question is about the action that the factor will take if our client fails to pay the account receivables on time.