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? … [Read more...]
Using a Factoring Company
One of the most common challenges for companies that work with commercial clients is having to offer credit terms. This gives clients the option to pay an invoice 30 to 60 days after you have delivered your product or provided your services. Your company has to cover the expenses of fulfilling the contract and then wait – for up to two months – to get paid. Offering credit is expensive Most small companies have to offer credit even though they can’t afford it. Large companies demand it and you have to provide it if you want to earn their business. But providing credit has a cost, especially if your company has tight cash flows. At the very least, it will slow down your growth since you won’t be able to add new clients who may also demand … [Read more...]