Questions to Ask about Factoring Receivables
Go to Entrepreneur.com and read Yun Lee’s article, Factor Your Receivables for More Cash. It’s an overview of the factoring topic and points out questions you should ask of a factor.
Here’s one thoughtful note the article makes:
Finally, put yourself in your customers’ shoes and inquire about what the invoice handling process will be like from their perspective. Look for a company that is as focused on customer care as you are. You should know that many factoring companies adhere to “notification factoring” where it is clearly indicated on the invoice that payment should go to the factor.
Another point mentioned in the article is that pricing is crucial. You need to know what the factor charges.
Facteon believes pricing is crucial, too. And you should not have to guess what a factor’s fees are, or be confused by them. One of the ways Facteon is different in making its factoring fee schedule available on the Web. And, the fees are based on a straight percentage and volume of invoices, and are easy to calculate — no complex formulas.
Related: 10 Things to Ask Your Factoring Company.
