As it is a financial service that is not known to all companies, there are some myths that are sometimes referred to.
To help you decide, we’ve made this page to clarify some of the most common ones.
Factoring is just for companies in financial hardships
In truth, all kinds of companies use Factoring, from micro-companies to SME’s and major companies.
Factoring will be bothersome for my clients
Your client is also a client of the Factoring company. That said, if any action hurts the business relationship between your company and the customer, the Factoring company will lose business aswell, as such, it is in the best intrest of the Factor to maintain posive relationships.
To get good service there’s nothing better than resorting to a company that specializes in management of Factoring.
Factoring is too complex
At first glance, getting a cash loan may seem simpler.
But in truth, understanding how Factoring works is very simple. In addition, the advantages you get make purchasing this service worthwhile.
Factoring is expensive
It is a common mistake to compare “apples with oranges”. This a very common occurance when analysing factoring costs.
Factoring includes the collection service of your Invoices and may also include the insurance coverage in the event of late payment or non-payment by your Buyer.
Factoring is exclusive for big companies
Factoring companies tend to focus on large companies because it brings more revenue with less work.
Factoring benefits are for companies of all sizes. Therefore, a company specializing in Factoring Management may be the right solution for your business.
Factoring is too rigid
At first glance Factoring may seem rigid.
In fact, nothing could be further from the truth. With Factoring your company unlocks financing the moment it makes a sale.
The more you sell the more financing you have. So you only pay for what you use.
Factoring is too hard to manage
Some say that Factoring is difficult to manage, as they say, has a large bureaucratic burden.
See various solutions and choose the Partner who specializes in this service. Fortunately, there are those who will manage your Factoring services for you and do it very well.
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