In any business, regardless of the years established or the number of employees, there can be short-term cash flow issues. This is particularly true of business in Florida allowing their customers 30, 60 or 90-day terms for payment of invoices. To cover this gap, and to allow businesses to have the cash flow they need, business factoring offers a simple, effective option.
There are many different industries that take advantage of business factoring across the state. These include companies offering government staffing, security guards, service businesses, information technology services and those involved in manufacturing and processing.
When choosing a company to handle your business factoring needs, there are three important factors or considerations to keep in mind. By comparing different factors in these three areas, you will be able to find the factor best suited to meet your needs.
Speed of Process
When reviewing companies providing business factoring, taking a look at how long the process is from the time of the application to the time the funds are transferred into your business account is important.
The best companies will provide a 24-hour approval time on your application, and typically the funds will be in your account within just a few business days for the very first funding. This process will be quicker if you do business with the same customers on an ongoing basis.
The funds can be provided up to 90% of the total of the accounts receivables, with a residual amount to follow after the invoice is paid and fees of the factoring company subtracted.
Costs and Fees
With some business factoring companies in Florida and around the country, hidden fees and costs can really add up. However, with a top company you will find there are highly competitive rates and no additional fees or hidden costs to the service.
This means that the application is free and so is termination of the factoring agreement. You can work with the company for as long or as short of a period of time as you require the funding and then cancel without a penalty.
When you are working with a top Florida-based business factoring company, you also have the added benefit of their professionals managing your accounts receivables. This allows you staff to expand and grow your business while the factoring company will ensure that invoices are paid and your funding is available when you need it.