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How to Spot a Factoring Scam

Posted by in Invoice Factoring

Here at RMP Capital, we take great pride in our ability to provide creative funding services that allow businesses to effectively run and grow while we handle speeding up their cash flow. And while factoring services around the globe have helped innumerable companies throughout an array of industries, the unfortunate truth is that not all factors are created equal.

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Whether or not you choose RMP Capital for your funding needs, we don’t want you to fall prey to a crooked deal. That said, here are some tips on how to spot a factoring scam:

Surprise fees

Looking to sell your accounts receivables? Make sure you’re clear on the exact fees that will be charged. If a factor increases rates or charges penalties out of the blue, consider it a red flag.

Limited or no reporting

We believe that, as a client, you have a right to receive frequent updates and notifications. RMP Capital offers online reporting, which allows you to track transactions 24/7. A factor that keeps you in the dark is not one you want to work with.

Little to no experience

How you fund your business should not to be taken lightly. Factoring services with very little experience may not be able to follow through on promises. RMP Capital’s leadership, on the other hand, represents over 70 years’ experience in accounts receivable factoring and over 150 years’ business experience in the areas of finance, management, marketing and sales.

These warning signs indicate that a factor might not be fully transparent, or worse — a scam. To learn more about what sets RMP Capital apart, call us today at 631.738.0047 or visit us online.

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