Once you have made the decision to Factor invoices, you have several options to consider when deciding what company to work with.
In most cases (or industries) you want to work direct with the source. Cut out the middleman and save a few dollars in the process. This is common practice but not always the case when it comes to factoring.
You certainly could work directly with a Factoring Company, but should you?
If you are new to the process, you might want to strongly consider working with a factoring consultant. They know the players. They also know the best Factors – and the worst.
A factoring consultant can help you avoid working with funders that are slow or charge too much. But it doesn’t stop there.
There will be many other things a factoring broker or consultant can help you with:
- What about monthly minimums?
- Do you need a “full service” factor?
- What is the term of the relationship?
- Are you getting a fair market price for you receivables?
Items like these can save you time and money; so selecting someone experienced can go a long way to help your wallet and your sanity.
A good factoring consulting will “shop” your deal around to several factoring companies – trying to get you the best terms going forward.
What about the Factoring consultant’s fee?
The good news is that, for the most part, the Factoring Company pays the consultant’s fee – and working direct with a Factoring Funder oftentimes won’t save you any money (matter of fact, you could pay more)!
So, if you can have an expert in your camp, and not have to pay them, why wouldn’t you?
There are many options when it comes to Factoring Companies. Be sure to check and see if an experienced consultant would be a good way to go. Oftentimes you will think it is the best move you could have made.