Where and How to Find Factoring Companies
If you decide that you would like to explore the factoring potential of your business, finding a factor is easy. Is really is a matter of doing an Internet search and then doing your homework on the companies you find to make sure they are legitimate and good to work with. One nice thing about this Internet age we live in is that you do not necessarily need to find a factor in your city. Factoring is easily something that can be done virtually.
Once you find a factoring company with the potential to meet your needs, here are the questions you should ask:
- What are the basic fees? How much of your invoice will you be paid and what percentage is their fee?
- What are the extra, hidden fees in the contract? For example, is there an initiation fee, a due diligence fee, or a late invoice fee?
- What is the reputation of the company? How long have they been around? Who are their clients? What do people say about them? Do people like working with this company? Are they fair and flexible or rigid and dogmatic?
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