What do you like and dislike about your factoring company

Offer value versus being a payday loan outfit. Approach me with a business solution and I'll listen. Come at me with a fast money pitch and you won't get all the way through it before I hang up on you.

Start with an agreement that reads more like revolving credit terms versus eight chapters of pawnbroker timeshare sales speak.

Obvious maybe: market or better money rates and a short list of sensible add-on fees.

Of course a free credit check utility. Even better if it reports details on a recourse approval or decline. Give your client more decision support in case they might want to go direct with an apparently risky factoring debtor.

Be very clear about timelines and deadlines, along with any correlated benefit or consequence.

Actually meet or exceed the timelines you impose upon yourself. If you screw up, admit it and make it right. Likewise, if I make a mistake (that's not fraud) help me understand what I can do to avoid it in the future.

You should have a factoring 101 webinar or the like. Not only to educate prospects on your program, but set clear expectations of responsibility and explain how it works. Who is supposed to do what when. It should be required of all new clients.

Be a part of the information age. Accept electronic submittals. Have real-time or nearly so online accounting tools.

Use a fuel card that is widely accepted if you offer one. Enable some level of account control for users that doesn't require an email or phone call to you every time a change is needed.

Even better if you facilitate cash deposits on your supplied fuel card. That is, factoring proceeds are not the exclusive funding method.

Service and fuel discounts are always nice. Definitely takes the sting out of fees.

That's about all I can think of at the moment. Good luck!

 

The percentage they charge and how they will rip you off on a cash advance