Factoring Services: Finding the Right Solutions for Your Business

Factoring services are used by businesses across every industry to enhance cash flow, smooth uneven revenue periods, build up capital, and reduce the need for debt-based financing. However, factoring services are not all the same, and the specifics can vary from factor to factor. There are a few key points to look for when deciding on factoring services to ensure you are getting the best results possible.

1. Turnaround on Invoices

One of the main advantages of using factoring services is that unpaid receivables are converted to cash and funds are made available sooner than the 30, 60, or 90-day payment schedule printed on the invoices. That said, it is not uncommon to find a factor that will take between 48 hours and a full week to process receivables. Commerce moves at a much faster pace, so businesses should look for factoring services that can deliver within a single day to achieve better cash flow parity. Maintaining a strong positive cash flow allows businesses to cover overhead, make payroll, and build up capital reserves to roll out plans for growth. A good factoring company will work with you and deliver quickly on the cash your business needs.

2. Personalized Service

Every business is unique. Questions and solutions cannot be reduced to a few selections on an automated menu with a robotic operator. Find a factoring company that understands the value of people and that has people standing by with the experience to offer the answers and guidance you need. Make sure to choose factoring services that provide a personal account manager who will talk with you to understand your needs and address your questions.

3. Flexibility is Key

A lot of factors require long-term contracts in which businesses must factor all of their invoices. Businesses need more flexibility, and should be able to choose how many or how few invoices they factor. The economy fluctuates. Businesses have different needs at different times. What works one day may not work tomorrow. Businesses neex flexible solutions that can be adjusted to their needs and goals. When considering factoring services, look for one that puts you in the driver’s seat.

4. More than Factoring Services

Businesses have needs that are adjacent to factoring services. The ability to perform credit checks on their customers to assist in making decisions. Tools to track payments and processing. Resources to help budget and make plans for growth. You should partner with a factoring company that adapts to the needs of its clients by going above and beyond.

Single Point Capital offers the most comprehensive factoring services to businesses nationwide. It’s free to sign up for our services, and we make funds available within a single day on factored invoices. We are a national leader in factoring services for businesses of every type and size. With Single Point Capital, you can choose which invoices get factored, and we provide a host of tools to check the credit of your customers, track payments, and more. Contact our offices today to start factoring your invoices.