Choosing a Factor in the online community

Now this topic can make your head hurt. Once you inquire about opening a Factoring account you have opened the flood gates. Every Factor online is grappling for the chance to be your Factor of choice and one of the primary things you find in the ads and on the websites are high advance rates and low fees.

Here is what you need to know. Fees only go so low because even the Factoring companies have a cost of funds. As the saying always goes Read The Fine Print. You need to make sure you realize that the interest rate, or your discount is not always your total cost of funds. Your formal documents (the contract) will have it all spelled out. If you are getting similar quotes and then have one come in really low compared to the others, you just need to Read The Fine Print. I have lost deals before in the past because a prospect is under the impression they had a better deal, only to find out later it was not the case.

What is more important than your fees?

Services and Reporting

So many people are so focused on the advance rate and fees that they sign up with the Factoring Company offering the lowest fee. This can be a Huge mistake. These are your customers, you worked hard to get them and then to let a Factoring Company come along because they had great advances and low rates. Then after the fact, you find out they have Horrible services and reporting and worse case you cause issues between you and your customers.

Before you sign the dotted line, ask the factor to:

* Show you their reports and schedules.
* Ask what type of online reporting is available to you.
* How do they handle collections.
* Ask for some references
* How familiar are they with your industry

Here at Diversified Funding Services, we have aligned ourselves with some awesome Factoring Companies. I must because that is how I am paid. We have reputable, solid trustworthy funding sources and are proud to do business with all of them. They have outstanding customer service and come highly recommended.

If you would like for us to have them give you a free quote, just go to our website at http://www.divfunding.com and fill out our short form to get your quotes. If you decide to find a Factoring company yourself, good luck. Take these few suggestions to heart and you should do fine.

Thanks for reading and please:

E-mail me at mailto:mlittle@divfunding.com and share your thoughts and questions, if it may help others I will consider blogging about it!


Want to speak to me personally, please call toll free 888-603-0055