Is Your Factor Transparent, or Just Invisible?

Your relationship with your factoring company is important.  The factor is in the middle of your cash flow—the lifeblood of your business. So, trust is essential. 

What should you expect from a factoring company?

1. You shouldn’t have any lingering questions about your contract.

Any contract for financing, including factoring, contains a lot of legal language and isn’t open for much negotiation. But before you sign one, you should understand everything in it. Even if you’re in a rush for cash, the factor should be willing to spend the time to walk through every paragraph and answer every question you have about the contract. Both sides are making promises—be clear on what they are.

2. You shouldn’t feel trapped in a relationship that doesn’t fit.

Factoring can be a great cash flow solution for a company. It can provide funds to meet payroll, keep up equipment, and grab growth opportunities. When it’s a good fit, factoring provides a stable present and optimistic future. But what if, for any reason, it’s not working well for your business? Are you stuck in a long-term contract or having to pay a huge termination fee? Factoring should feel like a partnership, not a prison sentence.

3. You should be able to get answers quickly and honestly.

Business moves fast, and your focus is on doing good work for your customers. What happens when you have a question about a customer’s credit, an invoice that needs funding or a payment that hasn’t hit your account? You need a factor that answers the phone and gets you to the right person who has the knowledge and tools to quickly answer your questions. And you need to be able to rely on the answer, even if it might not be exactly what you want to hear. Speed matters, but so does honesty.

4. You should have a team that’s dedicated to your business.

Your business is unique. Your employees, billing, customers and needs are not the same as others’, even if they’re in the same industry. If your account is just passed around to whomever is free at that moment, are they going to get it right? You need a team that knows you, knows your business and knows your customers because they’re dedicated to your success.

Is all this too much to ask?

No. At Scale Funding, we are uncompromising in the principles that make factoring work well for our clients. We are transparent, clear and honest. Our clients stay with us not because they’re trapped in a contract, but because we live up to our promises. After 30 years, we know our business, but more importantly, we make the effort to know yours. You’ll get a team of seasoned, knowledgeable professionals that is dedicated to your account and committed to being there when you need them and celebrating your success. We earn trust each and every day, because that’s what a good relationship is all about.