When your business is looking for alternative funding strategies that go beyond traditional bank loans, there are plenty of other opportunities you can take advantage of to get the cash you need. One of the most popular financing methods that has emerged over the past few years is invoice factoring or accounts receivable financing. Here is a quick comparison of the top 10 factoring companies, according to TopTenReviews.com.
In alphabetical order, the top 10 companies include:
1st PMF Bancorp
American Receivable
CapitalPlus
Charter Capital
Factor Funding Company
New Century Financial
Paragon Financial Group
Riviera Finance
Universal Funding Corporation
USA Factoring
TopTenReviews analyzed each of these companies and provided rankings based on fee structures, features available, and the help and support provided by the company.
How to Choose the Right Factoring Company
For most businesses that are new to factoring, the decision of who to work with can seem a little overwhelming. After all, how do you compare the different fee structures, costs, and features available? The best advice from experts is to choose a company that:
Offers fast approval times
Charges low rates and has no hidden charges or surprise fees
Can provide you with funding quickly
Has no long-term commitment requirements
Offers great customer service for both you and your clients during the collections process
Works with companies from a wide variety of industries
Fees and Features
Making the most of factoring services means choosing a company that will provide you with the cash you need and won’t charge a significant fee in the process. Some companies charge additional fees beyond just the cost of purchasing the invoice, which may include application fees, startup fees, and termination fees.
There are also several features to consider in your search for the right factoring company, including online applications and approval processes, the ability to get cash in as little as 24 hours, and the flexibility to sell as many or as few invoices as you prefer without having to meet minimum requirements. Also take a look at whether they require a long-term commitment or you can sell invoices only when you need to.
Benefits of Factoring Services
Owning a business is hard work, especially when you have to balance the costs and needs of running your company with the influx of cash and availability of working capital. When budgets get tight, factoring offers you the flexibility to turn an existing asset into immediate cash—and after all, as every business owner knows, “cash is king.”
The factoring process is simple and it provides you with a great opportunity to leverage your existing sales and accounts receivable to pay expenses you have right now—including payroll, utilities, equipment purchases, and marketing campaigns.
The Importance of Quality Customer Care
Working with a company that has a good track record of providing high quality customer service is critical. Since you are going to turn over the collections process to this company, you want to make sure they will treat your customers well and won’t destroy the good relationships you have built over time.
Find the Right Factoring Company
Talk to Universal Funding today to find out more about our factoring services, low fees, and features available. Give us a call or fill out our simple online rate form to get more information.