• 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.

  • Aug 29

    spot-factoringProduct quality is one but service is another thing. Still, both must come hand in hand to achieve an entirely worthwhile experience for customers and that’s exactly what great spot factoring companies do. But how do we even identify the good from the mediocre? Check out the following characteristics and see to it that you tick each one off before you employ a certain provider.

    • TIMELINESS – Spot factoring has become a favorite because it allows businesses to choose a specific invoice and sell the rights to its collection in exchange for an advance of its value. Unlike other financing options, it is relatively fast with majority of providers able to release cash in just a day’s time. That’s the standard and anywhere beyond it is mediocre and below par.
    • FLEXIBILITY – It is also important that they be able to handle a diverse set of clients. Even if let’s say their expertise lie in a particular client industry, they should have no trouble serving companies of different financial backgrounds, sizes and kinds.
    • SYSTEMATIC – Check and inquire about their standards and procedures. Does their process seem streamlined? It should be otherwise we’re getting ourselves in a tangled mess. That kind of situation would be a headache. Besides, we want spot factoring companies that’ll make everything run in as smooth as possible.
    • CUSTOMIZED – Standards must be there but when it comes to serving clients with various needs, they need to be able to fine tune and tailor fit their services to those. Each business entity is unique in their own ways so it is necessary to work alongside a company that has no trouble shifting their gears to meet your necessities.
    • RELIABILE – Always choose providers that are reliable and trustworthy. Their professionalism and ethics need to be far and above otherwise it’ll be hard to work with them. Plus considering that they will handle the collection for the invoice factored, you’ll want someone who will likewise treat your customers right if not better.
    • REASONABILITY – Last but not the least, great spot factoring companies come with reasonable and sound fees. Keep in mind that since the financing method is a onetime transaction, the fee should be a onetime thing as well. Regardless, the amount should be at a sweet spot, neither expensive nor cheap. The former is never a guarantee of quality while the latter is always a case for red flags.

    Check out http://workingcapitalpartners.com

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