Factoring Companies to Avoid

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.

Things to Look for in an Invoice Factoring Company

Factoring is an excellent financial tool to help you continue business as usual, even before your clients pay their invoices. Making payroll, accounts payable, and growing you business is all stress free when an invoice factoring company is involved.

When choosing a factoring company in Houston, consider looking for these important points:

·      No Application Fee: Do not let a company charge you to fill out an application. Look for a company that has no application fee, but wants to help you grow your business and help you succeed instead.

·      Quick Turnaround: While all factoring companies will want to vet your companies credit standing and viability, do not let the application process take too long. Look for a company that will turn your application around in less than 48 hours with a response. Crown Financial will actually do you one better and will respond within 24 hours of the recipient of all paperwork.

·      Quick Funding: The point of invoice factoring in Houston is to give you the cash flow to continue business as usual and take advantage of new business opportunities. Look for a company that pays cash quickly. Crown Financial will begin paying cash via wire transfer as soon as all paperwork is approved. When invoices are submitted, you can expect payment with 24 hours of submission.

·      Information at Your Fingertips: Do not let your factoring company keep you in the dark. Look for a company that is going to keep you informed on invoice payment status, changes in your clients’ credit rating, approvals, funding, etc. You want to know that your factoring company is a part of YOUR team and has your best interests in mind.

·      Experience: Factoring companies may all seem the same, but look for those that have been in business for quite some time and can prove their solvency. Crown Financial has been helping clients succeed for over 25 years, working with all industries and types of businesses. Our experience and depth of capital make us an obvious choice above the competition. 

Improve Your Factoring Application in 5 Easy Steps

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.

Factoring Invoices vs. Bank Loans

Many believe that factoring invoices with a factoring company in Houston is just like taking out a bank loan, when in fact; both forms of financing are very different.

Bank Loans

Every business owner understands the impact of a business loan. Financing is based on credit history and individual operations. While this traditional means of gaining capital may feel comfortable, it does have its drawbacks. Obtaining financing through a bank loan may be simple for some seasoned businesses, but a start up will likely find this process more difficult. Not to mention, increasing your credit may not be feasible in the early stages of your business. With a bank loan, payments – plus interest – are made over time and your funding is capped at a certain amount.

Factoring Invoices

Factoring is often an option for companies that have difficulty getting financing through traditional means, such as start-ups. In fact, many bank loan officers will send clients to factoring companies in Houston. First and foremost, factoring does not produce any debt to be repaid. You simply go through the application process, gain approval within 24 hours, and funding begins immediately. There is no cap on the amount of funding potential and approvals are based on the credit history of your clients. One of the best things about factoring invoices is the flexibility and speed. Once an invoice is submitted, money is transferred almost immediately to you via wire transfer. It is up to you as the business owner to decide which invoices get factored and how often factoring should take place. You are in control, not the bank.

If you are interested in exploring financing options through invoice factoring, give Crown Financial a call today. With over 25 years of experience, our team is well equipped to handle your accounts with the quality and expertise you deserve.

Common Misconceptions about Factoring - Crown Financial

Factoring invoices is a commonly misunderstood and underutilized strategy for producing a cash flow that can, in turn, grow your business.

Misconception #1: Factoring is a loan.

Factoring is not a loan, but in fact the purchase of a financial asset – your receivable. Unlike a loan, the focus of the partnership is on the cash and the quality of the receivable at hand; the credit rating or risk is not taken into account. All three parties – your company, the factoring company, and the invoiced client – are a part of the transaction.

Misconception #2: I lose control of my company with factoring.

Factoring is a tool to help you gain MORE control of your company by giving you the capital you need to grow your business, pay your bills, etc. There is no need to be tied up in the hassle of invoice payment. Crown Financial will keep you informed with up-to-the-minute reports on all of your accounts, monitor your clients’ credit, and more.

Misconception #3: The process for getting cash is slow and costly.

When working with Crown Financial, invoices are funded via wire transfer on a daily basis. You can expect to receive cash with 24 hours on most cases. Our typical payout per invoice is 85%, but this can very based on the individual client. And if you do not want to factor all invoices, you do not have to do so. The choice is completely yours!

Crown Financial has been working with companies for over 25 years to grow your business through factoring. While many claim to be experts in the field, Crown Financial can confidently say that we are experts given our wealth of knowledge, experience, and deep capital reserves available. Give us a call today and see how factoring invoices in Houston, Texas can work for you.

Turn Your Invoices into Cash: The Benefits of Factoring with Crown Financial

What business is not looking for ways to increase cash flow and minimize the effort it takes to get outstanding invoices paid?

Crown Financial is your one-stop shop for getting cash up front, so that you can continue to grow your business, while letting us handle the dirty work. If you have not considered factoring invoices, here are some benefits to consider now:

·      More Working Capital: When you use invoice factoring with Crown Financial in Houston, Texas, there is no need to add debt or dilute equity to get working capital. You have cash at your fingertips.

·      No More Payroll Headaches: With factoring, delays in payments do not give you cash flow headaches, leading to payroll woes. It is cash you can count on.

·      Increase Your Profits: With cash on hand, you are able to take advantage of growth opportunities as they present themselves.

·      Improve Supplier Relationships: When you have capital on hand, it is much easier to pay your own bills quickly and efficiently. Expect to see your supplier relationships flourish, in turn leading to opportunities for discounted supplies and other perks.

·      Greater Inventory Management: As a business owner, your job is to take advantage of opportunities as soon as you see them. Consistent cash flow allows you to purchase inventory when necessary, take advantage of bulk discounts, increase production at the drop of a hat, and ultimately fill more orders.

·      Thorough Credit Assessments: Crown Financial’s extensive credit database allows us to effectively offer advice on a client’s credit risk, recommend credit limits, and monitor those credit limits on an ongoing basis. Our team is well-trained to offer solutions that will ultimately make your business more profitable. 

Ready to turn your invoices into cash? Give Crown Financial in Houston, Texas a call today.