Completing a search using the term “factoring companies” on any search engine will result in millions of possible results. Selecting from these options to determine the top factoring companies to do business with takes more than just a quick internet search.
The reality is there are different levels of factoring companies, just as in any industry or business. By researching the different companies you are considering it is possible to delve into the business practices, the experience, and the services offered. This understanding will allow you to ensure the company ultimately selected is one of the top factoring companies.
History of Success
Throughout the last decade there have been significant economic and financial challenges for all types of businesses. The top factoring companies have not just continued to provide services for small businesses during these difficult periods; they have worked with small businesses to facilitate growth and expansion.
Many of the top factoring companies actually expanded their services over the last ten years, highlighting the effectiveness of their business model and their quality of service.
Risk Management
The best factoring companies have developed highly effective risk management protocols. This structure allows the company to accurately and quickly determine the risk associated with particular businesses, thus maintaining an efficient collection of payment for the accounts receivable purchased.
Customer Service and Client Relationships
While factoring may be part of the business and financial industry, the top factoring companies understand it is their ability to respond to the needs of their clients and customers which keeps them in business.
The best companies focus in on proactive management of all client accounts. They also provide a personal approach to ensure your business has access to valuable services to optimize profitability.
Expectations
With the three components discussed above in place, it makes sense the top factoring companies have a plan and way to set expectations on credit risk taking and business practices.
Through the development of criteria and protocols, decisions are made on factoring that are profitable for the entire organization, as well as your business. With effective credit risk protocols bad debt exposure is reduced dramatically, which is an essential consideration in any business model.
The information on top factoring companies is available on their websites. They are transparent and open about their fees and the services they provide. This practice allows small businesses to have the information they need to choose the right factor to manage their AR.
As one of the top factoring companies in the United States United Funding has been in business since 1997.
