If you’re seeking an efficient way to quickly improve cash flow for your business, invoice factoring is one of your best options. When you factor your invoices, you get immediate cash that you can use to manage and grow your business.
Once you decide you want to use this creative financing method you have to choose the right invoice factoring company. There are quite a few companies that offer factoring services. How do you select the best one for your needs? The following are some criteria to follow when considering an invoice factoring company.
What to Consider When Selecting an Invoice Factoring Company
Experience and Financial Stability
When seeking the best factoring company, experience certainly counts. You can look at how long they’ve been in business. However, there’s also the question of whether they have experience in your industry. Every type of business has unique needs. There are differences between, for example, a trucking company, a wholesaler, and a printing company. It’s worth looking into what kind of experience the factoring company has in your industry as well as their ability to fund you at any time. Your company can be out of business if your funding company is out of cash.
Do They Offer Favorable Rates?
Before you get any type of financing, you need to carefully study the terms. One of the advantages of invoice factoring is that you don’t incur any debt and don’t pay annual interest since you’re not getting a loan. At the same time, the factoring company does charge fees in exchange for their services. You should review any term sheet carefully and look for things such as hidden fees, auto-renew clauses, and unfair termination fees. At the same time, don’t make your decision solely on the basis of rates. You also have to consider the factor’s experience and reputation.
Research Their Reputation
It’s important to look into the reputation of any business that you’re thinking of working with, especially when finances are involved. Fortunately, it’s easier now than ever before to find out what previous customers have to say about a company. Does the factoring company have testimonials? Can you find any reviews about them? What customers say about a business is often more illuminating than what they say about themselves. An invoice factoring company with a solid reputation may also be willing to furnish you with references that you can check for yourself.
Making the Right Choice
Choosing the best factoring company can seem complicated and time-consuming, especially if you haven’t worked with this kind of company before. At the same time, it’s worth it to do your research. Invoice factoring is a practice that can be extremely beneficial for your business so you want to make sure you find a solution that’s a good match for your business.
Riviera Finance is one of the leading invoice factoring companies in North America. With more than 25 locations in the U.S. and Canada, we’ve been helping small businesses with financing solutions for almost 50 years. Learn more about Riviera Finance, an invoice factoring company.
If you’re ready to discuss factoring your invoices with Riviera Finance, you can get started here!