Factoring provides a flexible and fast option for financing when traditional forms of financing, such as bank loans, are not a viable option. Additionally, by outsourcing accounts receivable to a factoring company, businesses can save themselves the hassle and internal bureaucracy of conducting accounts receivable activities on their own.
Providing factoring services for small businesses since 1997, we have the experience to assist your business to grow and develop. Over the years, we have found our clients need answers to some very specific questions before choosing our services over the competition, and we know they will be helpful in understanding what we do. Ask all the companies you are considering the following issues, and then compare answers.
The Technology Question
The first question to ask before you engaging a factoring service provider is: “What type of technology are you using, and how can it help me better manage and run my business?”
Many factoring service providers leverage technology in order to reduce the cost and increase the efficiency with which they factor account receivable for their clients. However, there is a very wide range of the types of technology that different service providers use. Before engaging a provider in a factoring agreement, be certain to understand fully the type of technology that they are using. This includes the benefits that their technology offers, as well as how that technology stacks up against the competition.
We will walk you through information on the technology we use in developing the creditworthiness of your clients, the record keeping for your accounts, and the way our use of technology helps you.
Client Retention
A second important question to ask your potential factoring service provider is: “What kind of client retention do you have?”
Retention is a key indicator of how satisfied a factoring service provider’s clients are with its ability to deliver services and create value. Along with this question, it is important that the provider also be able to answer questions about how they calculate client retention numbers. This should include who in the company is responsible for calculating and reporting on client retention.
We are very proud of our client retention rates, and we will provide you with this information up front. We can also tell you how often we report on client retention and how we use feedback from clients to improve our client satisfaction reports.
Finally, as with any type of service provider, you should ask your potential factoring company about their BBB (Better Business Bureau) rating. United Capital is proud to have earned and maintained a BBB A+ rating throughout our history, and we know your experience with our firm will also reflect that high level of satisfaction.
