Invoice factoring services is a brilliant way of financing opportunity. If a company otherwise would have to turn down a new sale, factoring can help. If a business is financially strained from growth, factoring helps! This article will look at some of the things to look out for with invoice factoring services. Here is what to consider when seeking business credit funding.
Why Look out for Invoice Factoring Services?
One of the biggest challenges facing small and mid-sized businesses is cash flow. Often, these businesses land on opportunities but are not in a position to fulfill them. In fact, it has been established that this has led to the collapse of many of these businesses even when they are still making profits. To stand out, it is important for a business faced with this type of challenge to consider the options available to salvage the situation.
Things to Look Out for with Invoice Factoring:
- Turnaround Time
- Are They a Direct Lender?
- Growth-Enabling Funding
- Startup Support
- Factoring Requirements
- Customer Support
1. Turnaround Time
With most businesses, you have to make decisions on closing a deal quickly. The customer will not wait around for you to decide whether your business can handle the increase in volume. Having an invoice factoring services partner creates fast turnaround time. Businesses can make decisions on new opportunities within the same day.
2. Are They a Direct Lender?
To guarantee ease of doing business, it is important to deal with a direct lender as opposed to working with an invoice factoring broker. The main benefit of working with a direct lender is clearer communication. Unlike a factoring broker who has to relay and consult with a lender on your behalf, you can ensure you are both on the same page about your financing needs. This can also speed up your factoring process if you are able to communicate any potential hiccups in your invoicing schedule ahead of time.
3. Growth-Enabling Funding
Accepting a large client can lead to another opportunity to accept a large client. It is important that the lender handling your invoice financing is equally enthusiastic about the growth of your business. When this is the case, your business is in a position to confidently seek more opportunities, and this leads to an exponential growth of your business. When looking for a financing partner, be sure to find a facility that will grow with the volume of your sales. Otherwise, you may be missing out on new opportunities.
3. Startup Support
At their infancy, businesses are quite vulnerable and in most cases lack funding. However, owning your own business means you will go to great lengths to ensure you can accept new opportunities. Improving your cash flow is a reliable way to ensure business success. However, due to the risks associated with financing startups, the majority of the lenders are hesitant to work with them. As an owner of a startup business, it is important to be on the lookout for a lender that will support your vision and offer factoring services to enable the business growth.
4. Factoring Requirements
Typically, with receivables funding, the qualification criteria is easier. Further, the cost of invoice factoring is less than the cost of an online loan. Nevertheless, different lenders have different requirements. So, it is quite important to be aware of their requirements. Businesses should exercise clear communication, as well as full disclosure of their invoicing process to the invoice factoring company. A factoring company and a small business factoring their invoices need trust and communication in order to operate smoothly.
5. Customer Support
When taking on new opportunities, you typically need constant communication. From the inception of the deal, all the way to when the invoice is settled, you need updates. So, Eagle has dedicated account managers, ensuring clear channels of communication and peace of mind. If you call your lender, do you have to jump through hoops to speak to a human? We make communication simple and straightforward.
Look Out for Invoice Factoring
With Eagle Business Credit as your lender, we provide all the above and have your account setup within 48 hours for the initial funding. We fund your receivables within 12 hours of your submission. Invoice factoring services pay immediately on your open invoices. Factoring services allow you to concentrate on doing what you know best as we worry about the finances.