Switching Invoice Factoring Companies
The old adage “It takes money to make money” has never been truer than it is in the current economy. Cash flow is the lifeblood of any business, and unless you have a financial backer bank rolling your venture, chances are you have a relationship with a factoring company, or other financial institution. As a small business owner, you have the choice to use a traditional bank, an invoice factoring company, or maybe both. When was the last time you assessed the costs involved, as well as advice offered, and made a comparison with other banks or factoring companies?
Financial regulations may be in place to protect the consumer, but they obviously protect the financial institution also. Credit regulations are constantly changing and when banks and other financial institutions merge, they create new rules. Are you aware of everything your financial institution is providing you, and also of the hidden fees and future costs as you grow? Are the financial needs of your company being met?
These may be some of the reasons you’ve considered switching, but you’ve thought it to be too much of a challenge to change your financial institution. You may be concerned with the possibility of penalty charges or extra fees, but these charges can often pay for themselves if you find another option that works better for where your business is now and where you are headed in the future.
As your company changes, your funding needs become more complex. Where no fees on a checking account may have initially been a priority, as you begin to grow, available cash flow becomes more important. In order to expand, your cash flow must also be increasing, and your financial institution should be helping you with this process. A bank or factor may have excellent customer service, and process your transactions efficiently, but how do fees compare and are they offering you all the financial advice you need to grow?
- Is your financial institution growing with you?
- What is the cost of doing business and could you get better fees elsewhere?
- Are you being advised as you grow and your needs change?
- Are you aware of all the services your bank or factoring company can offer you?
- Are you making time to regularly evaluate other financial institutions for better terms and rates?
Do not be afraid to assess your needs on a regular basis. Changing may be a daunting prospect, but it may also be the best decision for your future.
Always take into consideration all that your financial provider can offer, even those services you think you do not need right away. Make comparisons regularly, ask questions, and most importantly, make informed decisions.