How do you go about finding the perfect trucking factoring company with which to work? The right trucking factoring company can breathe new life into your business, so you want to make sure that you’ve found the perfect team with which you can partner. A factor is a third-party company to whom you can sell your clients’ invoices in exchange for an upfront payment on any of the projects you’ve completed. It’s ideal in that it allows you to receive payment for work already done, so you can keep your business afloat, pay your employees, and take on more significant projects.
Here are five hassle-free steps that’ll guide you on how to find a suitable trucking factoring company to go into business with:
Ask For Referrals from Business Associates
Asking for referrals from business associates is an excellent way of finding companies with whom others are doing business. This way is effective to collect a couple of names to look into because people are likely to recommend companies with which they have worked and have had personal experience. In this way, you’ll be able to tell whether these people are happy with the service they are receiving from the factoring company or if you should stay away from the companies they are mentioning.
Read Reviews Online About What People Say
Once you’ve collected a few names of factoring companies to look up, it’s time to do your homework. Go online and read reviews of what people have said about the company. Do as much background checking of the companies as you can. How long has the company been in business? Are they forthcoming with people’s money? How is their customer service?
Ask For References from the Factoring Company
When you’re ready to approach the trucking factoring companies face-to-face, you should have your series of questions to ask the person with whom you’re going to sit down. They will probably make a great case about why you should work with them. Ask them for references with which you can follow up. Be wary of companies that are reluctant to share references, as this can be a red light. If their service is as excellent as they are saying it is, surely there should be clients willing to testify to their awesome service. So giving you references should not be a problem.
Assess Your Company’s Needs
If you’re happy with the information you received during your sit down with the factoring company, the reviews you’ve read, and what the referees have said, it’s time to assess whether to move on with a particular company or not. Take time to go through your company’s needs and weigh them against the different things stated in the contracts. Will you opt for spot factoring or contract factoring? Will you settle for recourse or nonrecourse agreements?
Apply, Sign the Contract, and Wait to Get Paid
When you’re ready to proceed, get in touch with your lawyer and have him look over the contract a final time to ensure that everything is in order. If there is something you don’t understand or that’s not clear in the contract, ask your lawyer and the trucking factoring company to clarify ahead of time before signing. Otherwise, proceed with your application, sign the contract, and wait to get paid.
That’s it. The above are five easy steps to finding the perfect trucking factoring company with which you can work.