With the technology available today, finding the best freight factoring companies is very easy. Tickle the keyboard for a bit and you might get hundreds of results. However, what can be more challenging is how to choose the best one to work with.
Just like when shopping for other products and services, you have to play it smart and go for the best invoice factoring company that best fits your needs. Here’s a quick guide to help you compare factoring companies:
Years In Business
The best freight factoring companies that has been in business for a good number of years are the best ones to work with. Running such companies is not an easy matter given they need to look at risks involved and balance it with their possible gains.
New factoring companies might be good but they might not have the amount of experience in managing their portfolios. You do not want to go with companies that are still testing the waters and might be out of business when they mismanage their portfolios. But this does not mean you should snub new companies, it just means you need to do a ton more of research before you sign with them.
If you want the best freight factoring companies for your business, go for those that have been in the business for at least five years.
Experience In Your Industry
If you are in the trucking or freight business, you want to work with companies that has a good knowledge of the industry you’re in.
While there is nothing wrong if you working with a generalist factoring company, you will be in better hands when one that is familiar with the issues you are dealing with.
You can ask your prospect factoring companies for references in your industry. You can contact these references and ask them about their experience with the factoring company you might work with.
When trying to find the best freight factoring companies to work with, you want to know what their comfort zones are. You have to know if they can fund your needs without any issues. Knowing the comfort zone of the factoring company will give you an idea what it’s sweet spot is. All you have to do is ask to find out what their comfort zone and most companies are more than willing to let you know.
Minimum Factoring Fees
There are factoring companies that require a regular volume either on a quarterly or monthly basis. When you sign up for such, you might face extra charges when you go below the agreed volume on certain periods. These extra fees ensure that the factoring company earn what it oughts to earn.
While agreeing to a certain regular volume can give you lower rates, it can put you in an uncomfortable situation especially if you do not need such volumes on certain period. So, weigh things carefully before inking any deal.
Competitive Fee Structure
You want the best deal for your business so shop and shop and shop until you find the best freight factoring company to work with. Another top consideration is the structure of fees presented to you. Aside from the rate, check out the advance fees and other charges you might need to shoulder. Also find out who funds the factoring company and see if they have a stable source of financing.
Searching for factoring companies is easy but finding the best freight factoring companies isn’t. Check out our reviews at FactoringCompany.net