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IFG
FACTORING ARTICLES
To maintain an excellent credit history, you first need to stick to a budget so you know exactly where all of your money is going. What’s more, you need to make sure you keep daily note of every single business expense.
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Factoring Articles
Five Tips for Working with a Factoring Company
If you are looking to raise some working capital from factoring, then you need to know about the following tips which could help your chances of getting approved for services.
Tip 1: The most important thing is that factoring services companies want to make the underlying debts against which they are providing funds are recoverable, so that it is easy to collect or recover the finances that they have provided. The factor will want to know the average size of invoices, the number of debtors that you deal and the turnover of your business.
Tip 2: To simplify the nature of your debts, make sure invoices are only sent for factoring after the services are provided and/or the goods have been delivered. Keep good records to support the debts, such as proof of providing the service or proof of delivery. Factoring companies do not favor businesses that take deposits in advance or businesses that invoice single transactions in several stages.
Tip 3: Clean up your sales ledger to improve your chances of being approved for factoring. Also track down any outstanding debts to minimize the level of overdue invoicing which will be something that might deter a factoring company. Any due credit notes need to be issued and clearly identify any old debts.
Tip 4: Be clear on why you would like to work with a factoring services firm. Funds to be used within your business should not be used for another reason, such as buying capital equipment. If this were to happen, the cash that was available within your business will be reduced and your application will be less attractive to a factoring company.
Tip 5: Don't surprise your factoring services company associated companies that they were not aware of, or an outstanding County Court Judgment. Be open and offer full details of any potential issues in advance. Have the facts ready, so that the initial meeting with the factoring company will go smoothly.
These tips are only a few of the key aspects of your business that factoring companies will consider when looking to approve your business for a factoring facility.
To speak with a representative from the Interface Financial Group (IFG) about invoice factoring, please US: 877-210-9748 or Canada: 877-598-9851.
Testimonials:
"IFG has become an important asset to our company."
Daniel F. Ortega
President
Nationwide Drywall
