Invoice factoring is a great option for stabilizing your company’s cash flow. However, when you look for factoring services, you may feel a little overwhelmed because there are so many options to choose from. That’s where a factoring broker in Norcross can help. Not only do they save you a lot of time, but they can also save you money. Additionally, they offer independent advice.
Saves Time
Invoice factoring can get complicated because there are many different variables involved. How much the factoring company charges depends on the creditworthiness of your customers or clients, but how this is determined can vary. There are also differences in payment terms for the different lenders. And many of them may have requirements you need to know about, such as having a minimum number of invoices to factor each month.
Using a factoring broker saves you the trouble of having to do the research yourself. Based on your circumstances, they can help you find the company that’s the right fit for your situation. And they can even save you money.
Saves Money
While it can cost more to involve a middleman, that’s not entirely true in this case. A factoring broker can save you money, because they have already established a relationship with the factoring company. They may even be able to pass along special terms and discounts. At the very least, your broker can help you find the company that offers the best terms for you to maximize your bottom line. If you plan to use invoice factoring for the foreseeable future, getting the best possible payment terms can make a big difference to your monthly cash flow, which is why using a broker makes financial sense.
Independent Advice
When you talk to the staff at different factoring companies, they’re going to paint a rosy picture of the process. If you want an independent opinion, your broker is the one to talk to. Maybe there is one factoring company that offers amazing payment terms, but they take their time in releasing funds. Your broker would know. Their advice can make a big difference for your business over the next few months in terms of available cashflow.
A broker has years of experience with the factoring industry. They know which factoring companies are easy to work with and where you’ll get the best terms for your invoices. They can also help you determine if you should use recourse or non-recourse invoice factoring. With non-recourse factoring, the factoring company bears the risk if your clients don’t pay the invoice.