Factoring companies focus on the credit of your customers more so than the credit of your business; however, it is still important to show validity when applying for Crown Factoring Services. Follow these 5 easy steps to improve your approval rate and begin collecting cash today:
1. Become a Business Entity: Just because you become an LLC or other business entity does not mean that you give up control of your business. As a sole proprietor, you run higher financial risk. When you become an LLC or corporation, you are showing a factoring company that you are a less risky client, business savvy, and are going the extra mile to make your business succeed.
2. Have an Online Presence: In this digital age, having a presence online demonstrates your legitimacy to potential factoring companies in Houston. Create a business web page if you haven’t already done so. Become active on Twitter, Facebook, and other social media sites. Have a LinkedIn profile. All of these things show factoring companies that you are committed to your business’s success.
3. Be on File with the Secretary of State: After forming an LLC or corporation, it is important to register with the Texas Secretary of State’s office. Any factoring company will verify your credit standing and check for unpaid taxes, so showing you are in good standing with the Secretary of State’s office and have paid your taxes in full is key to a successful factoring application.
4. Submit a Stable Company’s Invoice: Since factoring relies heavily on the credit of your customer, consider including a sample invoice from a blue chip customer who has excellent credit standing and regular business dealings with your company.
5. Keep your Documentation in Check: Showing an invoice factoring company that you have all your files in order is an important step toward an approved application. Keep all purchase orders, contracts, invoices, and payments well documented.
Looking for a factoring company in Houston? Call Crown Financial and fill out an application today.