There are many aspects to consider when choosing a factor, and one of these is location. Some businesses find that they prefer to work with a local factor and benefit from their proximity for face to face meetings and excellent local knowledge when dealing with debt collection. Indeed, customers will often respond better to a local business. However, you are certainly not tied to a local factor and should always choose the company that offers you the best overall deal, taking into account fees, customer service and other contract terms (especially as the majority of the process takes place by email, post or over the phone). If the majority of your customers are based oversees, you will need to consider a factor that specialises in international factoring and export finance.
- Are there any risks or inconveniences to factoring?
- What criteria should I consider before choosing a factor?
- How do I assess the quality of factoring companies?
- When does it make sense to use invoice discounting rather than factoring?
- Who are the major UK factoring companies?
- Should I use factoring or a bank overdraft?