3 Questions to Ask Before You Factor

Not all factoring companies are equal.

Here are three questions you should ask before you sign up with a factoring company.

How is the customer service?What fees does the factoring company charge?What are you getting for the factoring company’s rate?
Denise Messang, Divisional Manager

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3 Questions to Ask Before You Factor

Not all factoring companies are equal.

Here are three questions you should ask before you sign up with a factoring company.

How is the customer service?What fees does the factoring company charge?What are you getting for the factoring company’s rate?
Factoring companies employees

How is the customer service?

We believe in long term relationships with our clients. That means we go the extra mile to provide the professional service and expertise that you deserve as our client.

When looking for a factoring company, ask these questions when you compare UC Factors to other companies.

  • When calling, do you reach a live person immediately, or do you have to work your way though an automated voice-response system?
  • What are its customer testimonials and online reviews?
  • Does it have long-term relationships with many of its clients?
  • Will the company assume responsibility for credit checking and qualifying your new and regular customers?
  • Have any of the factoring company’s clients’ businesses expand double, triple and more after taking on the service?
  • How much do the people there know about your industry?
 

How is the customer service?

We believe in long term relationships with our clients. That means we go the extra mile to provide the professional service and expertise that you deserve as our client.

When looking for a factoring company, ask these questions when you compare UC Factors to other companies.

  • When calling, do you reach a live person immediately, or do you have to work your way though an automated voice-response system?
  • What are its customer testimonials and online reviews?
  • Does it have long-term relationships with many of its clients?
  • Will the company assume responsibility for credit checking and qualifying your new and regular customers?
  • Have any of the factoring company’s clients’ businesses expand double, triple and more after taking on the service?
  • How much do the people there know about your industry?

What fees does the factoring company charge?

Many factoring companies offer an extremely low factoring rate that it makes you wonder if it is too good to be true. It should come as no surprise that there are other hidden costs that they charge for services that we consider standard.

Here are some of the hidden extra costs of factoring for services that UC Factors does not charge.

  • Setup Fee
  • Scheduling Processing Fee
  • Per Invoice Fee
  • Same Day Processing Fee
  • Due Diligence Fees
  • Non-Factoring Fee
  • Credit Check Fee
  • Termination Fee
 

What fees does the factoring company charge?

Many factoring companies offer an extremely low factoring rate that it makes you wonder if it is too good to be true. It should come as no surprise that there are other hidden costs that they charge for services that we consider standard.

Here are some of the hidden extra costs of factoring for services that UC Factors does not charge.

  • Setup Fee
  • Scheduling Processing Fee
  • Per Invoice Fee
  • Same Day Processing Fee
  • Due Diligence Fees
  • Non-Factoring Fee
  • Credit Check Fee
  • Termination Fee

What are you getting for the factoring company’s rate?

Your factoring company represents you because it is essentially an extension of your accounting and collections department. Very low factoring fees means that companies cannot provide the high level of customer service to you and your clients.

As a business owner, your time is your most valuable asset. When you interview a factoring company, check and see:

  • Do they answer the phone?
  • Are they friendly?
  • Are they understanding and helpful or are they just trying to sell you?

This will give you great insight into how it will be working with that company as well as how they will represent you to your clients.

 

What are you getting for the factoring company’s rate?

Your factoring company represents you because it is essentially an extension of your accounting and collections department. Very low factoring fees means that companies cannot provide the high level of customer service to you and your clients.

As a business owner, your time is your most valuable asset. When you interview a factoring company, check and see:


Do they answer the phone?
Are they friendly?
Are they understanding and helpful or are they just trying to sell you?

This will give you great insight into how it will be working with that company as well as how they will represent you to your clients.