Home Add to Favorite Contact Submit  
             05 March, 2024

Category:  Articles » Finances » Leases-Leasing


Factoring Companies - Ask About Hiddens Fees

         Views: 1852
2007-09-20 10:19:38     
Article by Troy Degarnham

There are literally hundreds of factoring companies to choose from in the modern economy. Each of these companies presents its own set of benefits and advantages to using their company. However, there are a few tips and tricks that can be learned before setting out to find financing companies that will best suit individual needs.

The first aspect to consider when choosing appropriate factoring companies is that there are no hidden fees. Many companies promise great return only to discover that there are invoice fees, charge back fees and other fees that the financing companies are not upfront about. Ask and inquire about hidden fees such as phone calls or any other fees that may not have been mentioned in the company literature. Most reputable factoring companies incorporate the fees for invoices, and other expenses in the percentage that they offer to buy invoices.

That effectively introduces the percentage of which many highly regarded financing companies offer. Be cautious of factoring companies that offer a very high advance rate on the factoring invoices. These are the companies that typically have hidden fees so that when it comes time to get the actual finances, the rate becomes much lower. Generally, a good solid rate for financing companies is around 80%. It may seem unattractive compared to a similar company offering 90% but after hidden fees the percentage usually falls much below 80%. Factoring companies that offer around 80% advance for factoring invoices usually don't have hidden fees. If they offer 80%, that translates to an actual 80% advance on all factoring invoices that are presented.

Keep in mind that financing companies are essentially taking over the business's accounts receivables. With that said, factoring companies that offer a professional collections department would be an essential asset. The benefits to finding financing companies that offer this service characteristically speed up the process inherently. The manpower is available to collect the debts from the factored invoices in a professional and timely manner. It also avoids the much dreaded charge back fees when the invoices are not paid after a certain period of time allotted in the initial factoring contract.

Many factoring companies do not assume risk against those debtors that may or may not pay their invoice. A solid company with a reputable factoring history will assume the credit risk associated with invoice factoring. That means that if the client doesn't pay, the financing companies take that risk instead of the individual business, which is a huge relief for any prospering business.

Factoring companies should be selected following basic ground rules to ensure a successful factoring experience. Select the financing companies according to the history that they have. Any good company will have a proven track record to accompany their claims and should be easily accessible. Factoring companies that understand the needs of any growing business is key to factoring success.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Accounts Receivable Factoring.

Extensive help and tips on factoring companies, assets, small business, medical factoring, non recourse and other factoring financial services.

Specialized in: Invoice Factoring
URL: http://www.accounts-receivable-financing.info
Print article      Bookmark this page
Related Articles 
Car Lease Calculator - Do's and Don'ts (Popularity: ): Most people who are interested in leasing a car end up searching the Internet for help. What they find varies from sites trying to sell your name to sites that will calculate your lease payment for you. While they all look good on the surface, you need to watch out to make sure that you are not being given bad or misleading information.The first thing to look for is a ...
Why Rentals Rates Are What They Are (Popularity: ): One of the most popular responses we hear from a customer who needs to rent a storage space is the ever so popular statement that they are just shopping for self storage rental rates. They want to find a self storage facility with the best self storage rental rates that can possibly be offered.That statement in itself tells you that most likely this sort of prospective customer does not have ...
What To Do When Tenants Won't Leave Your Investment Property (Popularity: ): You have decided not to renew a particular tenant's lease for any number of reasons (late rent, noise complaints). Immediately after notifying them that they must be out by the 31st, they stop returning your calls and are very cold when you do see them.You never hear from them again, but you stop by at 5pm on the 31st to check if they clean up the apartment only to find ...
Vendor Equipment Financing Tips (Popularity: ): Many equipment vendors have now realised that by positioning a finance option to their clients, they are not only making the product easier to sell, but more importantly, it becomes easier to buy.Here are some further tips that will assist in the process of increasing equipment sales:-* Include a monthly payment option with every proposal sent out to clients. Don't wait until the client has turned down the capital expenditure.* ...
When Does Leasing Beat Auto Loan Financing? (Popularity: ): Whether leasing is advantageous or not will depend on your particular financial situation, on your needs as a driver, as a tax payer and eventually as an owner. By leasing a car you agree to a series of terms that you should be well aware of before even considering undertaking a leasing contract. This is due to the fact that leasing is only advisable under the right circumstances. Otherwise, compared ...

Related Business 
Factoring Quotes (Popularity: ): Provides discounted factoring offers from a network of banks and factoring companies.
Invoice Discounting Factoring (Popularity: ): Invoice Factoring or Accounts Receivables Factoring generates debt-free financing to growing companies and keeps cash flowing smoothly. No more waiting to collect on unpaid invoices. When your business needs immediate cash FactorInvoices.net works fast.
First Capital (Popularity: ): Specializes in providing Traditional Factoring, Asset-Based Lending and Discount Factoring for growing and emerging private and public companies.
Invoice Finance and Factoring (Popularity: ): EZ Invoice Factoring provides invoice factoring solutions and other invoice financing services. Invoice factoring benefits a wide range of industries and the combination of high advance rates and support services of EZ Invoice Factoring cannot be matched by competitors. At EZ Invoice Factoring we offer great rates, no long term contracts, and excellent personal service specific to your industries' needs.
Factoring Receivables Companies - Accutrac Capital (Popularity: ): Accutrac is a well respected factoring company serving USA and Canada that offers AR Factoring, Invoice Factoring, PO Financing, asset backed lending, letters of credit & accounts receivable management. When cash flow problems give you sleepless nights, Accutrac Capital Solutions offers you an alternative to mainstream lenders. We’re all about helping business owners with cash flow solutions that don’t readily exist through traditional lending.
Invoice Factoring Company (Popularity: ): Invoice factoring done right can give your business tremendous financial advantages over your competitors. We can help you get a factoring line of credit so you can collect on unpaid invoices, extend credit to customers and immediately increase your working capital. We work with the nation's top financial institutions to get you the best rates and service when it comes factoring your invoices.
The UK Factoring & Invoice Discounting Helpline (Popularity: ): Factoring and Cashflow Solutions - the purpose of this site is to describe an introduction into the world of Factoring, Invoice Discounting and other forms of Asset Based finance.
Factoring Services (Popularity: ): Provides factoring and cash flow financing. Offices in California and Nevada
Key Capital Factoring (Popularity: ): providing factoring for small and medium sized businesses.
Trancentral Factoring (Popularity: ): -specialist for factoring the transportation industry (i.e. trucking).