10 Questions to Ease the Decision Making Process
When you are looking for an accounts receivable financing company for your customers, consider more than just the deliverable. Working capital matters, but reliability matters more!
As with any partnerships, there are ups and downs, and good relationships can be hard to find. Obviously, credibility with your customers is one of the most important elements of your business. There may be occasions when you would like to refer your customers to an accounts receivable financing company, or factor, but they all look the same! It is hard to differentiate, so what should you be looking for in a broker partner?
Many factoring companies are indeed similar in that they are offering similar services, but by highlighting what to look for in a reliable broker partner, we can soon differentiate between the excellent and the not so good.
The first and obvious questions would certainly be:
- Will my customers experience exceptional service?
- Will all their questions be answered by professionals who understand the business of factoring accounts receivables with knowledge of our customer’s specialist market or industry?
- Will financing and processing be delivered in an efficient, fast, streamlined manner?
As a factoring broker, these concerns are obviously crucial, but there are several more qualifications that should be fulfilled by a reliable factoring company wanting to do business with you.
- How experienced and flexible is the factoring company?
- Can they provide a dedicated representative to help you?
- What auxiliary services can they provide to your customers?
- Do they value you, the broker, and want to encourage repeat business?
- Do they have limitations on the size of the advance, and if so what are they?
- Will they work with you when it comes to your client’s expectations?
- What is the factoring broker commission? For how long are commissions paid?
Remember, any factor that is in the business of marketing themselves to brokers needs to demonstrate how they aremore than a commodity, and how they can help you grow your business also.
Interview your potential factoring partner. Find out their strengths so that you provide your customers with the most specialized invoice factoring company for their needs. Also, many factors have extensive knowledge of particular industry solutions, such as trucking, distribution, manufacturing or government contracts, to name a few. Finally, make sure you understand clearly how to work with your factoring partner. A strong partnership is founded on trust, mutual respect and reliability.
Bay View Funding has a team of dedicated professionals who are committed to helping you help your clients with working capital financing needs.