The factoring advice from NextFactor
You are already working with factoring
If you are currently using factoring but are dissatisfied with it, there may be several reasons for this, such as:
- Insufficient funding: It may be that the funding is lower than you expected based on the agreed percentage. This could be due to "fine print" in the agreement, such as concentration standards, inadequate credit limits, or restrictive payment terms.
- Inadequate Accounts Receivable Management: You may be dissatisfied with the way accounts receivable management is being conducted. This is likely because the accounts receivable management is more focused on the risk of the factoring company itself, and less oriented towards the service for its client.
It is important to identify these issues and discuss them with your factoring company to find solutions. It may be time to review your factoring agreement or explore the market for another provider that better meets your needs.
You are looking for a factoring solution
You have a significant balance of outstanding unpaid invoices, and an advance on them will help you grow faster. Your bank cannot assist you and suggests partnering with their factoring company. But is the bank's factoring company really the best choice?
Does their proposal fit the specific needs of your business? Is it wise to consult other providers as well? Perhaps another factoring company can offer the same service at a lower cost or finance a larger portion of your invoices.
It is worth exploring your options and finding a solution that best fits your business.