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| Buyer’s Tips |  - Do not accept the first rate a factor offers: think over. Get to know if they can save your money with a lower discount rate or reduction of other fees. If no, clear up if they can provide you with a large advance so you are able to put more money to work for you.
- In spite of the fact that price can greatly influence your decision, try not to emphasize on price over skill and service. It may be not worth to put your money in the long run if you deal with long payment periods or insecure client service.
- You do not have to transmit all your invoices over to factoring company. That’s why choose which invoices you want funded. If you have a large invoices from a customer you know will withdraw payment right away, accumulate the funds yourself and skip the factor’s fees.
- Although factoring companies inform your clients that payments should go to them, you have all rights to let your customers know ahead of time. This will help to avoid rising skepticism or concerns.
- You should clear if the factoring company belongs to a national organization as the International Factoring Association (IFA). Non-profit groups as the IFA provide with professionals in the industry by sharing information, training, and resources to better serve their customers.
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