When running a small business a factoring company may solve most of your working capital needs. This is because small and medium-sized businesses SMEs do not always find banks and other financial institutions offering them financial solutions as they often require the use a lot of paperwork is time-consuming, require physical securities in form of collateral and are also may not be sure in the long run.
Invoice factoring also becomes an effective method as it relieves the business the burden of following up on its customers on payments allowing the business time to handle other business activities and growth as a whole.
When picking a factoring company, however, one should go above and beyond just reading the business terms of service, to investigating the real reason behind why the business offers invoice factoring. The following are some of the steps you can take to ensure you get the best deal for your business.
- Research about its background
When looking at the factoring options in mind, checking the business in question’s background is key. This is to avoid business that may end up being a fraud. Past transactions also involve looking at how it handles its operations and more importantly its factoring customers. Getting a factoring company that does not respect business ethics in its dealings can do you as a business a big blow. You can imagine your customers running away from you because you have put them under a factoring company that handles them in an unethical manner. Other customers may as well go as far as using your business adding more expenses which is not a good idea altogether.
- Look for testimonials
Viewing other testimonials will not only help you to get an idea of the best factoring option for your business but also get a feel for how the real market rates the business. Customer reviews from other business can help you identify other cheaper and better deals too. Instead of just looking at the written positive benefits, talking to those who have experienced the same can give you a clear picture of what works and what does not. Invoice factoring is a delicate way of financing your business as it touches probably the most important aspect of your business which is revenue and customers. Getting information on people who have done it with the company in mind, therefore, will help your business to avoid crucial mistakes that can leave the profound negative impact that can be costly and difficult to correct.
- Compare and contrast
When looking for an invoice factoring company having many options in mind is always better than a handful. This gives you the option to look and the advantages and the setbacks of each. Details such as the period by which the company allows the customers to pay the invoice, percentage of the cash allowed on the invoice and the requirement for invoice factoring are very vital. At Momentum Credit we offer up to 85% cash for an invoice and allow up to 90 days. There is no account opening and the process is short fast and reliable making it a very advantageous option for many businesses. We also do not require any physical securities in form of collateral making a complete solution to many small and medium-sized businesses SMEs as they ace such difficulties in other financial institutions.
- Consider other financing options
Other viable options include logbook loans and advance payment guarantees. Momentum Credit offers solutions to your business needs and these options might as well serve the financial needs of your business. To find out more about asset financing in Kenya, and all the available working capital solutions to your business click here.
- Keep searching
At Momentum credit we offer working capital solutions to your business, for us, we exist to expand your possibilities. That is why we operate on the virtues of honesty, contingency, and speed. As a business, however, never stop searching. From all the available financing solutions to all the available providers of the solutions, it is always good to keep looking at how many options you have and what is the best one to go ahead with. This provides a solid solution to many needs that you may have as a business.