Business owners that want the best deal when Factoring their open accounts receivable invoices use Factor.bid
Because when Factors compete to buy your open invoices, you get the best deal when factoring!
A Factor finance company will go as high as 95% of the face value of an invoice. For example, if your invoice is worth $5,000.00 dollars, and the facility reflects a 90% advance, the client will receive $4,500.00 dollars from the Factor finance company upon agreeing to sell the receivable invoice.
Upon receipt of the 90% advance, the remaining 10% will remain in escrow pending the payment of the receivable by the debtor (your client/customer). The balance remains unused until the invoice is closed.
The fee charged on any particular invoice depends on a few key factors. For example, your industry, the payers credit (your client), level of security, risk, A/R turnover, time to pay, etc. Each fee structure is individually established to maximize specific customer benefits and needs. The fee is deducted from the funds held in escrow, once your client pays the invoice in full.
Once a receivable has been paid the the fee is deducted by the Factor finance company from the escrow account, the remaining balance is placed into a rebate account called a Reserve. The reserve should be released to you at your request or as agreed per your agreement with the Factor finance company.
Why use Factor Bid to find the right Factor for Invoice Financing?
Every Factor has a different fee structure. Depending on which industry they specialize in and how cheap they’ve secured their money; in order to provide you a loan for your invoice financing.
Some Factors offer flat fees and others offer daily rates, so knowing how your customers pay and having the option to choose which type of fee structure is right for you is going to save you money.
Factor.bid is going to shop your invoice to the best factors in the industry that can finance your industry invoice type and are looking to finance invoices today. You’ll then get a few calls from the top factors with competitive offers to buy your invoices.
Let’s start with billing procedures. All invoices can be submitted electronically at your computer, or by using Factor App on your smartphones. Most Factors can ACH your money the same day, but how they verify your invoices, pick-up orders and/or Bill Of Lading can all be different. The benefits of receiving a few quotes and competitive offers to buy your open invoices is you get to decide which Factor has the most flexibility and is willing to go the extra mile to earn your business.
You’re going to be working with customer relationship managers, collection agents and maybe even the owner at some point. Finding a Factor that treats you how you want your customers to be treated is the most important thing. Not all factors are the same. Some will be more patient with you and will understand what you’re looking for and others may not. So getting a few solid offers when you’re going into business with someone, is a good thing and may save you a ton of headaches down the line.
The highest levels of transparency and accountability are important in building a long lasting partnership with your new lending arm (Factor). Some Factors provide 24-hour access to all your pertinent account information, collection notes, and reserve statements that outline the details of each and every transaction taking place on your account.
Some Factors offer a dedicated account manager that can be reached during normal office hours and will help with back office support. For example, sending Fax, emails and/or even calling customers to remind them about an agreed upon payment and the date payment is due.
Finding the right Factor for your business should not be hard. Factor bid makes it easy for you to get the conversation started by submitting an invoice. From there, all you need to do is relax and select one of the Factors that best fits your business needs and goals. Make the Factors work to earn your business and get the best deal when factoring your open accounts receivable invoices.
If you’re searching for a Factor to help finance your business and keep you competitive in your industry, how do you know which one is good? Just because someone shows up at the top of a search on your favorite search engine, doesn’t necessarily mean they’re the right finance partner for you. Wouldn’t you much rather have a few of the TOP Factors, that have been pre-vetted by our Customer Service Team and recommended by other hard working business owners like yourself? If you said yes, then you’re on the right track to getting the best deal when factoring your open receivable invoices for immediate cash flow.
Putting in less or the same amount of effort and getting multiple offers for your open accounts receivable invoices is the smart way to choose the Factor finance company that is right for you. Choose the Factor that best fits your needs today, and doesn’t simply offer a one size fits all approach to financing.
Download Factor App or visit www.factor.bid to start getting competitive offers on your open invoices today!
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