Selecting the Best Factoring for Distribution Companies
If you are considering factoring for distribution, it is important to take your time and pick your factoring agent carefully. In fact, the best approach is to opt for a company that has extensive experience of your industry. That way, you can rest assured that they understand your needs, know how your invoicing system is structured, and can work on your behalf.
This does not necessarily mean that you should look for a factoring agency that only specializes in your industry, however. Some of the best factoring for distribution companies are those that have knowledge of a lot of specialist markets.
Understanding Distribution Needs
The distribution industry is not a simple place. It involves a huge amount of transactions, made every day, and the contracts signed can involve multiple parties and a huge number of different products. This is why experience of the industry is an essential characteristic of the best factoring for distribution companies.
You need a firm that can tailor its service to your way of invoicing, so that customers are not disrupted and payments progress quickly. As this is the main aim of factoring – speeding up invoice payments – the focus should always be on creating a simple and straightforward factoring arrangement.
Finding the Right Factoring Agent
At Capital Funding Solutions, we make invoicing easy. We work with clients in Florida, Texas, New York, Georgia, Michigan, Virginia, and beyond. For more information on why we are one of the best factoring for distribution agents in the country, get in touch with our expert team today and find out for yourself.
The quickest and easiest way to make a great match with a factoring company is to know what you are looking for before you pick a factoring partner. This means being clear on how much of a percentage you are willing to pay for the service, how you would like the agent to communicate with customers, and whether or not you are happy to work with minimums.
While not all firms use minimums, many do and it is important to determine whether they are suitable for your business. If you run a fairly large outfit, minimum invoice payments will likely not be a problem. For smaller operations, however, having to meet a minimum requirement may cause issues later on down the line.
Considering Confidentiality Policies
If you do not want an agent speaking with customers on your behalf, you must work with one that offers this as part of their agreements. It is not available at all factoring firms for a very good reason. It essentially defeats the purpose of entering into a practical factoring deal in the first place.
If you do not let the agent handle invoicing on your behalf, you cannot benefit from the reduction in your workload and payment commitments. So, it is definitely worth going for the conventional agreement and letting an agent chase up payments for you. That way, you can turn your attention to more interesting and exciting parts of the business.
Best Factoring For Distribution Companies in Florida, Texas, New York, Georgia, Michigan, Virginia…