All invoice factoring companies are created equally, right?
Unfortunately, this is not the case. Each invoice factoring company in Houston varies in their level of experience, depth of capital, and the way they run their business. When consider which factoring company is right for you and your business, avoid companies with the following:
· Low Advance Rates: The entire reason to use a factoring company is to maximize your cash flow. Make sure that company is really working for you by providing at least 85% of your invoice value upon invoice approval. Accepting anything less is selling your business and growth potential short.
· Hidden Fees: No company wants to be nicked and dimed. Determine up front whether or not your factoring company charges hidden fees for bank transfers, origination fees, cancellation fees, etc. All of these extra costs can add up, creating additional hardships and headaches for you and your company.
· Contract Restrictions: Avoid companies that force you to submit every invoice for invoice factoring. It is your business, and it should be your choice as to which invoices you choose to factor. Choose a company that allows you the flexibility to factor when it is beneficial to you.
· Lack of Experience: This may seem obvious, but avoid companies that do not have a proven track record for success. New factoring companies have come into the market in recent years and do not necessarily have the capital or experience to help your business maximize its potential. Look for a company with a proven record.
If you are looking for an invoice factoring company in Houston, Crown Financial would love to talk with you. With over 25 years of experience, we have survived through the ups and downs of the financial market and have worked with clients from varying industries. Give us a call today to see how we can help you and your business thrive through the best invoice factoring service.