Factoring is a great solution for businesses looking to increase capital through their accounts receivables. The factor advances a large portion (up to 90 percent) of the value of an invoice, giving the business instant access to funds that can be used to effectively run and grow its operation.
Before you commit with a factoring company, read our list of do’s and don’t’s:
DO research factoring companies. No two factors are the same, so take some time to figure out which business best meets your needs.
DO look at customer reviews. What better way to gauge a company’s success than by reading client reviews? RMP Capital boasts a 4-star rating on Facebook.
DO review all terms and conditions. Again, not all factoring companies are the same. Before you sign on for an accounts receivable factoring program, understand the terms and conditions. RMP Capital will send a proposal with all terms and conditions of our program for review.
DON’T settle for a shifty factor. Making the most of your accounts receivables comes down to choosing the right factoring company. Never settle for a business that seems less-than-credible.
DON’T necessarily choose the cheapest rate. Yes, it’s important to be cost efficient. But don’t always go for rock bottom rates! Other factors need to be considered as well.
DON’T sign up for something you don’t understand. Before you begin factoring your accounts receivables, make sure you fully understand the program you’re signing up for. We at RMP Capital are happy to answer any questions you may have!