Tuesday, October 13, 2009
Things One Has To Look For Before Choosing An Account Receivable Factoring Firm
Posted on 8:18 PM by programlover
Things One Has To Look For Before Choosing An Account Receivable Factoring Firm by wmhaven1
in Accounting
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Account receivable factoring firm provides great service to companies by reducing their tension in the cash flow. But at the same time there are many fake firms available in the market and hence before choosing an account receivable factoring firm everyone has to look for certain things and should ask certain questions to know about the firm. There are five things which everyone has to consider before getting into an account receivable factoring firm.
First one is that the firm you are choosing has to be familiar with your industry because then only it is easier for them and also for you to deal with them. Else it is merely waste of time as you have to explain all the conditions, payment methods and procedures of your company to them. Next thing one has to look for is the flexibility level they offer to their clients and they should answer all the questions in a proper manner. The questions which the business owner should ask are,
<!--[if !supportLists]--><span style="font-family: Symbol;"><span>· </span></span><!--[endif]-->Is there any need of personal guarantee for any unpaid invoices?
<!--[if !supportLists]--><span style="font-family: Symbol;"><span>· </span></span><!--[endif]-->Is the relationship valid for limited period of time?
<!--[if !supportLists]--><span style="font-family: Symbol;"><span>· </span></span><!--[endif]-->Should I sell all of my invoices?
Like this many questions they should ask to the representatives of the firm.
The third one is the customer service a best account receiving firm is the one which provides great customer service. Because, if they didn't provide good customer service then their firm lacks quality and also check who are providing services. The fourth thing one should look is the stability of the firm because only if they are stable then you could get uninterrupted flow of cash to continue your business. In case if they are not stable the tension increases and you cannot survive in your business. Hence before choosing a firm makes sure to check whether they are affiliated to International Factoring Association (IFA). Finally you have to check with the pricing of the factoring firm depending on the invoices. If all these are good then choose the same firm for account receiving factoring else look for any other firm which satisfy all the needs.
First one is that the firm you are choosing has to be familiar with your industry because then only it is easier for them and also for you to deal with them. Else it is merely waste of time as you have to explain all the conditions, payment methods and procedures of your company to them. Next thing one has to look for is the flexibility level they offer to their clients and they should answer all the questions in a proper manner. The questions which the business owner should ask are,
<!--[if !supportLists]--><span style="font-family: Symbol;"><span>· </span></span><!--[endif]-->Is there any need of personal guarantee for any unpaid invoices?
<!--[if !supportLists]--><span style="font-family: Symbol;"><span>· </span></span><!--[endif]-->Is the relationship valid for limited period of time?
<!--[if !supportLists]--><span style="font-family: Symbol;"><span>· </span></span><!--[endif]-->Should I sell all of my invoices?
Like this many questions they should ask to the representatives of the firm.
The third one is the customer service a best account receiving firm is the one which provides great customer service. Because, if they didn't provide good customer service then their firm lacks quality and also check who are providing services. The fourth thing one should look is the stability of the firm because only if they are stable then you could get uninterrupted flow of cash to continue your business. In case if they are not stable the tension increases and you cannot survive in your business. Hence before choosing a firm makes sure to check whether they are affiliated to International Factoring Association (IFA). Finally you have to check with the pricing of the factoring firm depending on the invoices. If all these are good then choose the same firm for account receiving factoring else look for any other firm which satisfy all the needs.
