Finding the Right Invoice Factoring Company to Grow Your Sales….

1. Finding the Right Invoice Factoring Company to Grow Your Sales…. Many companies have to invoice their clients with terms, but what is the solution if your company cannot afford to wait for payment for 30 to 120 days? This is more the norm to have to wait to be paid on your invoices in our current business environment. However, your company does not have to wait until your customer(s) actually pay their invoice (s). You can always approach an invoice factoring company to provide cash flow, but how do select the right company? By selecting the right invoice factoring company, your management team will not have to worry about stopping their business activities due to delay in invoice payment(s). The operations will still go on, irrespective of the fact that the invoice(s) are more than a month late. Factoring accounts receivable financing firms can take care of your financial needs through the purchase of your invoice(s) at a discounted price. If you have carefully selected an experienced firm, then once the factoring company has purchased your invoice(s), you won’t have to worry about contacting your clients or reminding them about your invoice payment as the factor will know how to handle most of the billing issues. Factoring invoices is quite an easy service to use for companies that are focused on increasing profit and reducing the expenditures. With funds in their hands, the management doesn’t have to spend their precious time wondering what and how to get the required money for their business. Instead they can use this money to increase sales by buying more inventory while also reducing costs by paying suppliers early. There are quite a few invoice factoring companies in the US market, but many are new and without experience, or not the right match for your company…only a few of them provide reliable, quick, and professional service. Experience is not something easily found in this industry, or any other for that matter (any seasoned executive knows this). One can easily see the difference in factoring companies through the subtleties of their reporting systems, staffs’ general knowledge, the management of your customers’ receivable collection, as well as many other ways. It is also important to be practical in selecting a invoice factoring company that fits your firm…. It is important to select a factoring firm that is not too big or too small as you will find large firms only give the time of day and favors to their larger clients. Also, starting with a factoring firm that is too small will show quickly in their inability to properly fund your firm’s growth (very dangerous). Also, selecting an invoice factoring company that has special knowledge and experience in your field helps as well. Many factoring companies will state they are generalist and can handle any industry, but it is always better to go with commercial factors that have experience in your business area. For example, you would not want to use a transportation factoring company for your import, export business. Taking some time to

2. investigate will definitely provide your company long term benefits and the ability to grow much more smoothly. Stephen Perl, MS, MBA CEO of 1st PMF Bancorp Providing Working Capital to Growing Businesses since 1985 www.PMFBancorp.com