Best Factoring Service Review 2017
When it comes to finding Factoring Services comparing quotes is the key to getting a top product for the lowest price.
We’ve gathered information on the top 10 Factoring Service Solutions, user reviews, buying tips, and made it easy to get the best price from companies in your area.
Before you make a purchase be sure to download a free in-depth buyers guide for factoring services and get a side by side comparison chart. Simply tell us what your needs are (less than 1 minute), then download your chart to review 10 critical features and then get matched with top suppliers who can offer you competitive price quotes in minutes. Get Your Buyers Guide and Compare Prices Now
Top Factoring Service Review 2017
- Compare Factoring Service Prices
- Factoring Advantages and Disadvantages
- RTS Financial, BlueVine, Crestmark, and Fundbox Review
Please take a few minutes to read the buying tips and reviews posted below to learn about other customer experiences (Good and Bad). If you need factoring service prices please consider taking advantage of our free service and get multiple quotes from suppliers that will fight to win your business.
What To Look For in a Factoring Service
It’s your money, and you need it now, right? When you have outstanding invoices with clients and customers who are dragging their feet on one side, and employees and vendors who want to be paid on the other, you can run into a bit of a cashflow problem. A factoring service can be the solution, as long as you know what to look for and choose your service wisely.
A factoring service buys your outstanding invoices for slightly less than their nominal value, giving you cash in hand now in exchange for a few cents on each future dollar: they give you an immediate reserve, usually around 75-80% of the total collectable amount of the invoice, and when the factoring company eventually collects on the invoice they send you the remainder of the balance less their factoring fee—usually in the 1-3% range. When it comes to your bottom line, it’s similar to receiving a short-term loan against future receivables but with no liability on your part when it comes to non-payment.
Important Factors to Consider in Selecting a Service
The terms of any factoring service’s deals are obviously a prime consideration. If the reserve—the amount your business receives immediately upon purchase of an invoice— amount is too low or the factoring fee is too high, you’ll be setting your business up for unnecessary long-term losses just to cover short-term expenses. At the same time, consider that the dollar amount of your receivable account(s) you have to sell and the payment history of the clients who owe on those invoices will affect the factoring deals you’re offered: if you have more to sell and your clients have stellar payment records, you’ll tend to get a better deal.
Other things to look for when you’re trying to select the best factoring service for your business to partner with include the size of the companies the service usually works with, whether or not they have any industry specializations, and how both their approval and their collection processes work. Some factoring services have a minimum total invoice amount before they’ll consider doing business, and some require minimum commitment lengths ranging from six months to two years. Find a company that works with companies of your size and cash flow need and you’ll be much happier with the service you get. And because this service will be working not just with you but also with your clients and customers, make sure they’re friendly, straightforward, and have clear criteria for approving invoices and clear methods for collecting on them.
Factoring Your Way Into Free Cash Flow
When you choose a factoring service that’s right for your business and your customers, you can derive a whole lot of value from freeing up cash flows sooner rather than later. Do some shopping around, and stop letting long payment periods and unpaid invoices be a negative factor in your cash flow.