Wednesday, October 22, 2008

How to Choose the Right Freight Bill Factoring Company

In order to lay your hands on ready cash, you can avail of the services offered by the right freight bill factoring company otherwise not only will you be in financial trouble but your reputation and relation with your clients could also be marred forever.

Here are a few things that should be taken up by you before you decide on a particular factoring company. This financial arrangement looks very tempting but a proper research is needed so that you do not land up with an inefficient factoring company. This can improve your cash flow immediately and help you to pay off drivers' salaries and other expenses such as fuel, servicing and repair charges on your truck fleet. So, instead of waiting for 30 to 60 days for your credit payments, you could now have access to that amount almost immediately after issuing the invoice.

They then transfer the invoice amount minus their invoice factoring charges into your bank account within 1 or 2 days. In freight bill factoring, your credit invoices, which you would have issued to your credit clients, are bought by these companies.

Cross-Check the Factoring Company. Take details of some of their existing and past clients and speak to them regarding the quality of services availed by the clients. You should also make a personal visit to the factoring company 's office and check out his setup. If he is operating from a trailer or a small, shady, rented office then avoid dealing with such a company.

The Factoring Company 's Charges Should Be Reasonable. The factoring company should charge a reasonable fee for its services. Try to zero in on a company where you do not have to sign a term contract so that you can exit the setup if you are not comfortable with them.

The Factoring Company Should Have Proper Experience. The freight bill factoring company should have prior experience in dealing with companies of your size and turnover and should also have handled clients similar to yours. They should pay you the amount promised and always on time. They should know how to handle difficult situations without aggravating them and your clients too should be comfortable handing over your payments to them.

The Factoring Company Should Be Efficient. The staff of the factoring company should be polite, tactful and efficient since they will collect your invoice amounts from your clients. They should ensure that your hard work of building up a relationship with your clients is not compromised by their rude behavior or their incompetence. They should have all the data required in their hands before they contact your clients for collection of payments.

That way, any queries or problems can be nipped in the bud before it assumes dangerous proportions. This staff should be well aware of the clients credit history or any other specific points related to that client. They should have specific staff to handle certain clients. The factoring company should be accessible to you and your clients if not on a 24/7 basis, then at least during normal working hours.

The Factoring Company Should Be Accessible.

Compromise a little on their charges but not on the quality of service, which is expected from them. So, check out the above factors before hiring the services of any freight bill factoring company.


Jhon June 9, 2010 at 11:13 PM  

I have see some Freight Bill Factoring community some are good response to be given but They should have specific staff to handle certain clients. The factoring company should be accessible to you and your clients if not on a 24/7 basis, then at least during normal working hours.

rico May 30, 2012 at 11:33 PM  

I absolutely fulfilled with the details and thoughts you've distributed. Very useful among the visitors such as me. Thumbs Up for the job well done. Keep up the excellent work!

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