When it comes to finding a factoring company for your business, it can seem overwhelming. Knowing what to look for is the first step. We’ll discuss several factors that every factoring prospect should know and understand when looking for a factoring company.
You need to look at your industry. Factoring companies often serve specific industries and develop an expertise concerning certain industries. Construction, healthcare and trucking factoring are most often served by factoring companies that specialize in these industries. These industries have unique challenges that require experience. You’ll want to search for a factory company that serves your particular industry. Many factoring companies serve industries such as manufacturing, staffing, business services, oil and gas, and other common business types. If your business falls into one of these more general categories then you can search most factoring companies.
You want to look for a factory company that is genuinely interested in your business. The best way to determine this factor is to call the factoring company and talk to a representative on the phone. When discussing your business to the company’s representative, find if the person listens to you and understands your company’s needs. Gauge the interest level of the person you’re talking to. Often, you can determine within a minute or two if the person is genuine and someone who you would do business with. Also determine weather the person is knowledgeable and transparent about the factoring services that they offer. He or she should be easy to talk to and pleasant to deal with.
Get an estimate of the factoring costs for your company. Ask the factoring company representative what he or she estimates your factoring cost would be. You will probably need to provide them with the following information about your business:
1. Major customers of your business.
2. Your monthly sales volume or revenues.
3. How long your account receivables are outstanding.
With this information, the factoring company should be able to give you an estimate of what your factoring cost will be. You also want to know exactly how they calculate your factoring cost. Factoring companies determine your factoring caused by one of two methods – flat rate or adjustable rate. Flat rates are typically good for businesses with higher outstanding receivables. Adjustable rates are more difficult to determine but can be good when your outstanding receivables days are lower. Either way, you want to find out how how much it will cost and how they determine your factoring cost.
Finally, you want to ask the factoring company person about additional fees and contract terms in their factoring agreement. Ask them if they charge any fees on top of their factoring rate. Common fees include wire or ACH transfer fees. Some factoring companies charge for credit checks on your customers, however most factoring companies do not charge for this service. Also find out how long you have to stay under contract for their factoring services. Do they require a contract for six months or a year or more, or does the factoring company only require a month to month agreement? Many factoring companies are flexible and you want to work with a factoring company that doesn’t lock you into a long-term contract with hefty cancellation fees.
Mazon Associates Factoring
Mazon Associates is a Dallas factoring company that meets all the criteria that you want in a factoring company. Mazon serves many industries including staffing, manufacturing, business services and many others. The friendly folks at Mazon Associates are professional and take an interest in each of their clients. Mazon has been in business for over 45 years. They know the ins-and-outs of factoring for many types of businesses. Mazon does not charge any extra fees on top of their factoring rates except for wire transfer fees or ACH fees, which is common. One of the best things is Mazon only requires a month-to-month commitment for their factoring services, with no cancellation fee if you decide to leave for whatever reason.
To discuss your business with Mazon Associates, call 800-442-2740 today and ask to talk to Lisa. Lisa is the sales and marketing representative for Mazon Associates. Lisa is friendly and helpful and would love to discuss your particular situation.