• On Identifying Spot Factoring Companies That Deliver

    Filed under spot factoring
    Jan 15

    Businessmen examining a financial reportIf we focus on the numbers, there are a lot of spot factoring companies in the market today. But if we talk quality matched by price reasonability, well, not that much. So as users and businesses, it is our duty to make sure that we only approach and transact with the right people and institutions. To make the task easier, we came with a list of reminders and advice.

    1. TIME – Since immediacy is what spot factoring is most known for, that and its zero-debt feature, it is necessary to check that the provider in question can deliver within the time or period promised. For comparison, the best ones can release cash in as fast as a day’s time. No kidding!

    2. RESEARCH – With so many tools from traditional to digital, print or word of mouth, this should not come as difficult. Most if not all established companies have their own corporate websites where they provide for a list of their services, contact details, their background as well as rates. These should let you off on a good start. Of course, it doesn’t end here. Read about feedbacks and reviews from past and present customers from trustworthy blogs and forums as well as social media.

    3. EXPERTISE – Keep in mind that although most of these spot factoring providers cater to all businesses across different industries, there are those who specialize in certain sectors of it. It would be wise, say for a retail company, to tap a provider that specializes or has most experience and expertise on factoring receivables from their type of industry and business.

    4. PROCEDURES – Another notable characteristic to spot factoring is the transfer of burdens. As receivables are factored out and cash advance is received by the company, the provider in return gets the rights to their collection. When you sell the right to collect the value of your invoices to these institutions, you give them the right to demand payment from your customers. Avoid those with inconsistent and confusing collection processes as they can tarnish your relationship with clients.

    5. INSTINCT – If your gut tells you that something feels off then do try and trust it. Humans have instincts too and they’re there for a reason. A shady and under qualified spot factoring companies will feel wrong at some point or right off the bag. At the end of the day, we’re better off safe than sorry.
    http://workingcapitalpartners.com/

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