Regular cash flow maintenance is essential for any business. Late payments from clients can significantly impact your cash flow and productivity. Invoice factoring can be an effective solution to infuse the cash injection you need to improve your bottom line, pay your staff and take care of your daily needs. Here are three tips to consider and follow before signing an invoice factoring contract.
Review Carefully Before Signing an Invoice Factoring Contract
Before you sign, it is vital to review and understand all the terms and conditions before signing an invoice factoring contract. Make sure the contract discloses all fees, the length of the agreement and any collateral requirements. You may also want to look for details regarding early termination charges. If you desire credit protection for your receivables if the client refuses to pay, ensure the factoring is done on a non-recourse basis.
Select the Right Invoice Factoring Company
The invoice factoring company you select should fit your business needs before you agree to sign an invoice factoring contract. Look for a company that offers month-to-month contracts to allow you to test the waters. This will give you the flexibility to continue with the company if you find the service satisfactory, or switch to another if you have any problems. Research companies online and ask for recommendations. Ensure the company is financially sound and understands the current laws related to invoice factoring.
Consult with an Independent Broker
An independent broker can help you discover any potential issues before signing an invoice factoring contract. The broker can help you tailor a deal for your specific business circumstances. You can receive expert advice on the various aspects of an invoice factoring contract such as transaction fees, installments and credit.
Invoice Factoring Contract Services You Can Trust
Signing an invoice factoring contract can provide you with all the necessary resources to keep your business healthy and strong. That is why it is critical to find an invoice factoring company you can trust. JOBE Services, Inc. has served small and medium-sized businesses for over 25 years with daily cash flow needs. Call to get cash flow help for your business today.