Using a factoring service for the first time is always the most difficult. It can be challenging to know what to focus on to obtain the best option for short-term funding for your business.
To help those trying to choose between the various commercial factoring companies, United Capital Funding offers the following tips and focus points to compare.
- Fees and Rates – the rate or the percentage of the cost the factor charges on the accounts receivables they purchase is important. Often, lower rates are balanced out by hidden fees and costs. At United Capital Funding, we don’t charge any additional fees, which means no application, due diligence or termination fees.
- Minimum volumes – some commercial factoring companies require that a business contract with them and factor a minimum volume of accounts receivables per month or quarter. This can add significantly to the rate or the penalties should the minimums not be achieved.
- Contracts – always check carefully to determine the duration of the contract. This can lock you into using commercial factoring companies for much longer than you need the service.
At United Capital Funding, we provide a very customer-friendly factoring option. No minimum volumes, no long-term contracts, and no hidden fees. Instead, we create a custom factoring solution that works for your business and for your short-term funding requirements.
To learn more about the differences you will find at United Capital Funding, give us a call today or start your application through our website.