Factoring services are used by businesses across every industry to enhance cash flow, smooth uneven revenue periods, build up capital, and reduce the need for debt-based financing. However, factoring services are not all the same, and the specifics can vary from factor to factor. There are a few key points to look for when deciding on factoring services.
1. Turnaround on Invoices
One of the main advantages of using factoring services is that unpaid receivables are converted to cash and funds are made available sooner than the 30, 60, or 90-day payment schedule printed on the invoices. That said, it is not uncommon to find a factor that will take between 28 hours and a full week to process receivables. Commerce moves at a much faster pace, so businesses should look for factoring services that can deliver within a single day to achieve better cash flow parity.
2. Personalized Service
Every business is unique. Questions and solutions cannot be reduced to a few selections on an automated menu with a robotic operator. Make sure to choose factoring services that provide a personal account manager who will talk with you to understand your needs and address your questions.
3. Flexibility is Key
A lot of factors require long-term contracts in which businesses must factor all of their invoices. Businesses need more flexibility, and should be able to choose how many or how few invoices they factor. When considering factoring services, look for one that puts you in the driver’s seat.
4. More than Factoring Services
Businesses have needs that are adjacent to factoring services. The ability to perform credit checks on their customers to assist in making decisions. Tools to track payments and processing. You should partner with a factoring company that adapts to the needs of its clients by going above and beyond.
Single Point Capital offers the most comprehensive factoring services to businesses nationwide. It’s free to sign up for our services, and we make funds available within a single day on factored invoices. With Single Point Capital, you can choose which invoices get factored, and we provide a host of tools to check the credit of your customers, track payments, and more. Contact our offices today to start factoring your invoices.