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How to Select a Factoring Company

When you need capital fast, a factoring company can help. How do you find and select the right factoring company for your business needs? Keep reading to learn more about factoring services in Cumming, GA, from the experts at Eagle Business Credit.


One of the first things you should consider while looking at a potential factoring company is how long they’ve been in business. Experience in the financial industry is key. To still be in business themselves, an experienced factoring firm knows what they are doing and is more likely to have their own, reliable funding sources and a healthy credit record. As industry experts, they should be able to give you immediate and reasoned decisions based on current circumstances rather than from a computer algorithm with no level of flexibility. Be very wary of newly formed factoring companies run by people with no experience within the industry who offer impossibly good deals on factoring services. They may not be around for very long and where will that leave you? Compare prices and contracts across the board and look for companies with extensive experience and the ability to provide a facility that matches their client’s needs.

Track Record

A successful factoring company will have an extensive record of satisfied past and current clients. Ask for a list of references and call these companies. Ask them what type of factoring plan they were looking for. What was the deciding factor for finally choosing their factoring company? Do they feel that their provider has been attentive to their financial needs and concerns? You can also check online reviews on sites like the Better Business Bureau. The BBB is a third-party website where clients can rate companies using multiple factors as well as voice complaints on a public forum. Reviews cannot be erased, but companies do have the opportunity to address complaints and improve their score.

Fine Print

Before signing up for any services, make sure to read the fine print carefully to understand what you are getting. Factoring services are usually divided into two categories: recourse and non-recourse. Recourse factoring means that your company must buy back any receivables that the factoring company couldn’t collect. Non-recourse means that the factoring company has enough credit insurance to cover any losses from uncollected receivables in the event of debtor failure. Non-recourse contracts will protect you from liability but the fees are usually higher and are often only available in certain industry sectors. With a little research, you’re sure to find the good deals from the best factoring company in Cumming, GA.