{"id":1807,"date":"2022-09-26T19:30:18","date_gmt":"2022-09-26T19:30:18","guid":{"rendered":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/"},"modified":"2024-10-08T11:38:22","modified_gmt":"2024-10-08T11:38:22","slug":"considerations-when-choosing-factoring-company","status":"publish","type":"post","link":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/","title":{"rendered":"Top 4 Considerations When Choosing a Factoring Company. \u202f"},"content":{"rendered":"

Invoice factoring<\/span><\/span><\/a> makes it possible for your business to receive <\/span>money <\/span>that is owed to <\/span>you <\/span><\/span>now<\/span><\/span>, rather than having to wait for invoices to be paid. <\/span>A factoring company enables this by <\/span><\/span>purchasing<\/span><\/span> your business\u2019s unpaid invoices at a discounted rate and <\/span>receiving<\/span> those<\/span> payments from your clients directly. <\/span>As a result<\/span>, it is <\/span>important<\/span> for you to understand what to look for when choosing a factoring company for your business. Here are some <\/span>questions and options <\/span>you may want to<\/span> consider<\/span>.<\/span>\u00a0<\/span><\/span>\u00a0<\/span> <\/span>\u00a0<\/span><\/p>\n

What is the application process for invoice factoring?\u202f<\/span><\/b>\u00a0<\/span><\/h2>\n

The application process for invoice factoring is typically fast and simple. Contrary to the tedious process of applying for a traditional bank loan. A factoring company performs most of the application process. You just need to submit certain documentation along with the application for funding. <\/span>\u00a0<\/span><\/p>\n

Factoring companies will also review the invoices you are seeking to factor, your business bank account, an accounts receivable aging report, prior collections history, as well as some <\/span>other documents<\/span><\/a> for personal identification purposes. This part of the process is referred to as underwriting.<\/span>\u00a0<\/span><\/p>\n

A factoring company will review your application. Once reviewed, you may be approved for funding, This will likely be within twenty-four hours or less. Next, once the transaction is approved the contractual documentation must be signed. Funding should be available to your company within days. Make sure to choose a factoring company offering a quick application process. If you need working capital fast, this is beneficial.\u00a0<\/span><\/p>\n

\"When

The invoice factoring application process should be fast and flexible.<\/p><\/div>\n

<\/h2>\n

Choosing a factoring company with fair factoring rates.\u202f<\/span><\/b>\u00a0<\/span><\/h2>\n

Factoring rates are highly dependent on the firm you choos<\/span>e<\/span>. T<\/span>herefore<\/span>,<\/span> you should <\/span>evaluate<\/span> how much <\/span>you <\/span>wish to pay<\/span>,<\/span> and how often. Depending on the company, they may either calculate costs on <\/span>a <\/span>daily, weekly<\/span>, or <\/span>monthly<\/span> basis <\/span>or charge you a one-time flat fee. Factoring fees tend to fall between 1% and 5% of the total invoice amount. However, some companies will offer you different rates for different customers. <\/span>You may negotiate terms with a factoring <\/span>company<\/span> and <\/span>can <\/span>compare options to ensure you are receiving the best terms possible. <\/span>Questions <\/span>for the factoring company <\/span>to consider should involve the <\/span>f<\/span>ee<\/span> s<\/span>tructure<\/span>, <\/span>current <\/span>rates, advance<\/span> amount<\/span>s, and <\/span>whether there will be any <\/span>personal guarantees<\/span> involved<\/span>. <\/span>Ask<\/span>ing the right questions will allow you to be more prepared when speaking to or <\/span><\/span>researching a factoring company<\/span><\/span><\/a>.<\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

<\/h2>\n

Evaluate how the factoring company will communicate with your customers.\u202f\u202f<\/span><\/b>\u00a0<\/span><\/h2>\n

Since the <\/span><\/span>factoring company<\/span><\/span><\/a> is taking ownership of your invoices, they<\/span> will need <\/span>to<\/span> communicate<\/span> with your customers directly. <\/span>Forming <\/span>professional <\/span>relationships<\/span> with your customers<\/span> allows for a smoother collections process and <\/span>establishes<\/span> a mutual relationship between the factoring company and the customer<\/span>. <\/span>Therefore,<\/span> it is <\/span>important<\/span> to research how businesses handle their customers. Be sure to read feedback from real customers<\/span> to<\/span> find out<\/span> about their policies and how they communicate<\/span>.<\/span> At CapFlow Funding, customers are informed in three <\/span>different ways<\/span> about <\/span>making <\/span>payment <\/span>on factored invoices<\/span>– through a notice of assignment, <\/span>direct <\/span>verification<\/span> usually via email<\/span>,<\/span> and <\/span>by <\/span>information <\/span>regarding the factoring company <\/span>that <\/span>is <\/span>provided <\/span>right <\/span>on the invoice.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

\"When

Ensure you have clear communication between you, the factoring company, and your customers.<\/p><\/div>\n

<\/h2>\n

Research the factoring company\u2019s track record.<\/span><\/b>\u202f\u202f<\/span>\u00a0<\/span><\/h2>\n

Take <\/span>the <\/span>time to conduct research on <\/span>the factoring company\u2019s policies and <\/span>procedures<\/span> and find a <\/span>factoring <\/span>company whose <\/span>ideals and basic principles <\/span>line up with your<\/span>s<\/span>. <\/span>You <\/span>should also read reviews and feedback from <\/span>previous<\/span> or current <\/span>clients of the factoring company<\/span> you are looking to do business with<\/span>. <\/span>Do not settle for a company that will not meet your expectations.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Invoice factoring makes it possible for your business to receive money that is owed to you now, rather than having to wait for invoices to be paid. A factoring company enables this…<\/p>\n","protected":false},"author":1,"featured_media":1811,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[12,15],"tags":[],"class_list":["post-1807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-invoice-factoring","category-small-business-financing"],"acf":[],"yoast_head":"\nChoosing a Factoring Company - Top 4 Things to Consider<\/title>\n<meta name=\"description\" content=\"When choosing a factoring company, a business should consider a couple of factors such as their track record, rates, and communication.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top 4 Considerations When Choosing a Factoring Company. \u202f\" \/>\n<meta property=\"og:description\" content=\"When choosing a factoring company, a business should consider a couple of factors such as their track record, rates, and communication.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\" \/>\n<meta property=\"og:site_name\" content=\"\u0421apflow Funding\" \/>\n<meta property=\"article:published_time\" content=\"2022-09-26T19:30:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-08T11:38:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"667\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/capflowfunding.com\/#\/schema\/person\/6ca2c064e7901063b88aff3031d2b145\"},\"headline\":\"Top 4 Considerations When Choosing a Factoring Company. \u202f\",\"datePublished\":\"2022-09-26T19:30:18+00:00\",\"dateModified\":\"2024-10-08T11:38:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\"},\"wordCount\":633,\"publisher\":{\"@id\":\"https:\/\/capflowfunding.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg\",\"articleSection\":[\"Invoice Factoring\",\"Small Business Financing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\",\"url\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\",\"name\":\"Choosing a Factoring Company - Top 4 Things to Consider\",\"isPartOf\":{\"@id\":\"https:\/\/capflowfunding.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg\",\"datePublished\":\"2022-09-26T19:30:18+00:00\",\"dateModified\":\"2024-10-08T11:38:22+00:00\",\"description\":\"When choosing a factoring company, a business should consider a couple of factors such as their track record, rates, and communication.\",\"breadcrumb\":{\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage\",\"url\":\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg\",\"contentUrl\":\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg\",\"width\":1000,\"height\":667},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/capflowfunding.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Top 4 Considerations When Choosing a Factoring Company. \u202f\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/capflowfunding.com\/#website\",\"url\":\"https:\/\/capflowfunding.com\/\",\"name\":\"\u0421apflow Funding\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/capflowfunding.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/capflowfunding.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/capflowfunding.com\/#organization\",\"name\":\"\u0421apflow Funding\",\"url\":\"https:\/\/capflowfunding.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/capflowfunding.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/08\/capflow-logo-svg-6.svg\",\"contentUrl\":\"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/08\/capflow-logo-svg-6.svg\",\"width\":206,\"height\":51,\"caption\":\"\u0421apflow Funding\"},\"image\":{\"@id\":\"https:\/\/capflowfunding.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/capflowfunding.com\/#\/schema\/person\/6ca2c064e7901063b88aff3031d2b145\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/capflowfunding.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a1b397b2acfadf03f41f316c8510b98d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a1b397b2acfadf03f41f316c8510b98d?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/capflowfunding.com\"],\"url\":\"https:\/\/capflowfunding.com\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Choosing a Factoring Company - Top 4 Things to Consider","description":"When choosing a factoring company, a business should consider a couple of factors such as their track record, rates, and communication.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/","og_locale":"en_US","og_type":"article","og_title":"Top 4 Considerations When Choosing a Factoring Company. \u202f","og_description":"When choosing a factoring company, a business should consider a couple of factors such as their track record, rates, and communication.","og_url":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/","og_site_name":"\u0421apflow Funding","article_published_time":"2022-09-26T19:30:18+00:00","article_modified_time":"2024-10-08T11:38:22+00:00","og_image":[{"width":1000,"height":667,"url":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#article","isPartOf":{"@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/"},"author":{"name":"admin","@id":"https:\/\/capflowfunding.com\/#\/schema\/person\/6ca2c064e7901063b88aff3031d2b145"},"headline":"Top 4 Considerations When Choosing a Factoring Company. \u202f","datePublished":"2022-09-26T19:30:18+00:00","dateModified":"2024-10-08T11:38:22+00:00","mainEntityOfPage":{"@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/"},"wordCount":633,"publisher":{"@id":"https:\/\/capflowfunding.com\/#organization"},"image":{"@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage"},"thumbnailUrl":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg","articleSection":["Invoice Factoring","Small Business Financing"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/","url":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/","name":"Choosing a Factoring Company - Top 4 Things to Consider","isPartOf":{"@id":"https:\/\/capflowfunding.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage"},"image":{"@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage"},"thumbnailUrl":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg","datePublished":"2022-09-26T19:30:18+00:00","dateModified":"2024-10-08T11:38:22+00:00","description":"When choosing a factoring company, a business should consider a couple of factors such as their track record, rates, and communication.","breadcrumb":{"@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#primaryimage","url":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg","contentUrl":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/09\/shutterstock_2192099951.jpg","width":1000,"height":667},{"@type":"BreadcrumbList","@id":"https:\/\/capflowfunding.com\/considerations-when-choosing-factoring-company\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/capflowfunding.com\/"},{"@type":"ListItem","position":2,"name":"Top 4 Considerations When Choosing a Factoring Company. \u202f"}]},{"@type":"WebSite","@id":"https:\/\/capflowfunding.com\/#website","url":"https:\/\/capflowfunding.com\/","name":"\u0421apflow Funding","description":"","publisher":{"@id":"https:\/\/capflowfunding.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/capflowfunding.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/capflowfunding.com\/#organization","name":"\u0421apflow Funding","url":"https:\/\/capflowfunding.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/capflowfunding.com\/#\/schema\/logo\/image\/","url":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/08\/capflow-logo-svg-6.svg","contentUrl":"https:\/\/capflowfunding.com\/wp-content\/uploads\/2024\/08\/capflow-logo-svg-6.svg","width":206,"height":51,"caption":"\u0421apflow Funding"},"image":{"@id":"https:\/\/capflowfunding.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/capflowfunding.com\/#\/schema\/person\/6ca2c064e7901063b88aff3031d2b145","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/capflowfunding.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a1b397b2acfadf03f41f316c8510b98d?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a1b397b2acfadf03f41f316c8510b98d?s=96&d=mm&r=g","caption":"admin"},"sameAs":["https:\/\/capflowfunding.com"],"url":"https:\/\/capflowfunding.com\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/posts\/1807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/comments?post=1807"}],"version-history":[{"count":0,"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/posts\/1807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/media\/1811"}],"wp:attachment":[{"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/media?parent=1807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/categories?post=1807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/capflowfunding.com\/wp-json\/wp\/v2\/tags?post=1807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}