Questions to Consider When Evaluating Factoring of Receivables Firms

There are thousands of firms offering services for factoring of receivables. Knowing how to choose a firm that is a good fit for your business can be an overwhelming process if you don’t know what you are looking for. The following is a basic list of questions our customers find helpful when evaluating each factoring of receivables firm.

What are their competitive strengths?

The firm should have a competitive price structure similar to others in the market. Look at the structure and see what is included- what fees do you pay, and are things like postage and credit reports extra? Also, customer service should be a top priority. Look for a company with a personal representative for your account instead of one where you always get an answering machine when you try to contact someone.

1. What makes them stand out from others in the industry?

You want to choose a firm that differentiates itself from the competition. For instance, a firm with an affiliate connection for factoring of receivables shows that they are trustworthy and have a reliable track record.

2. How much have they funded, and how long have they been in business?

One of the most important things for factoring of receivables is how much the firm you choose has actually funded other businesses by buying their invoices and how long the company has been around. At United Capital we have been in business since 1997 working with all sector of industry as well as with government contracts.

3. What industries do they specialize in?

It is important to choose a firm that knows your industry. With firsthand industry knowledge, you won’t waste time explaining your businesses day-to-day process or the process of payments and receivables for your company. Our experienced staff has extensive experience in different industries, allowing a good fit between your industry and our professionals.

4. Where are their services offered?

You should have an idea of what geographic location you want the firm you work with to be in. This could mean working with a local, national, or international company. There are good and bad things about each, but keep in mind with an international company there might be outsourcing, time zone delays, and other technical issues.

We have offices in Florida, North Carolina as well as Tennessee but work with companies across the United States.

5. Is their model scalable?

You need to be able to grow your company. The firm you choose should be able to help you find qualify credit worthy customers and increase your receivables. Our goal at United Capital is to help you achieve your business goals and continue to grow and expand.

6. Do they use technology to make owning a business easier?

We use technology to run our own credit reports and collect payments, which allows you to run your own business easier by taking the place of your accounts receivable department.

Comparing different factoring firms will provide a range of different answers to these questions. If you have any questions please give us a call, our professional account managers are available to talk to you directly and ensure you get the answers you need.

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