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How to choose a good factoring company

How to choose a good factoring company, factoring companies, Manchester, Cheshire, Lancashire, UK
A trawl of the internet will reveal hundreds of results for " factoring". But how do you choose the right factoring company? The following provides an insight to the various factoring companies on offer.

There are actual factoring providers using their own cash. They can either be bank owned factoring companies or they can be independent factoring companies. An independent factoring company uses their own cash but they are privately owned and have their own autonomy. Independents tend to be regional based and provide a high level of service and expertise

To complicate things further any search for factoring on the internet will also throw up a splattering of brokers. A good factoring broker will help provide the most appropriate factoring company to fund your business. And the good news is that the service is free. Many factoring companies pay their introducers from their in house marketing fund and do not overload their charges, which is often a concern of any potential user.

How long has your business been established?

Your final choice of factoring company will depend on how long your business has been established, the level of profitability, the number of customers that you have, your sector and list goes on. A good factoring broker will be able to discuss your specific needs and make sure that you are speaking to the most appropriate company. They will be looking to make sure that none of your invoicing and terms of sale has the ability for your customer to claim liquidated damages or rights of set off which may affect your ability to obtain funding from certain factoring companies.

Factoring guide
XL Business guide to Factoring

Download here

 

See also;

Invoice discounting

Trade Finance

Bad debt protection

Cash flow finance

What is a factoring broker?