The market of factoring services develops all the time. There are more and more Factors offering attractive forms of financing within various types of factoring. How not to get lost in the tangle of offers and to select the service that is the most proper for our company?
The analysis of the questions determined above will help to make a proper choice:
- What is the specialisation of the Factor? Does the Factor that you want to choose know your industry? We know from our experience that almost every branch of economy has its specificity, so familiarity with it significantly improves selection of a proper variant for a given company. Apart from that, it is good if the Factor first of all knows the Polish market and the needs of the SME sector.
- Does your advisor speak in a comprehensible way? Some specialists abuse the corporate slang and unfortunately use it in contacts with the clients on an everyday basis. Sometimes it is a well-thought practice, so that not all is precisely specified and clear for the client. Therefore, it is worth finding such advisors who communicate by means of the same language, comprehensible for the entrepreneur, and every element of the presented offer is accurately explained by them.
- What does your service include? So what in fact do you pay for? The scope of the service may differ very much depending on the Factor. Apart from that, are you able to calculate the total cost of the factoring service annually by yourself on the basis of the offer proposed to your company? The cost of a service that is friendly for the SME sector should be legible and clear as well as should not include hidden fees. Moreover, purchase of the factoring service should not force your company to use other services, e.g. opening of the account in a specific bank.
- How many pages does your agreement have? It is a trivial aspect that may tell you a lot about professionalism of your future Factor. Do you get the assignment agreement, the loan agreement as well as the ‘Table of additional fees’ and the ‘General agreement terms & conditions’? Such number of documents is completely redundant. Make sure that everything is clear for you. A couple of pages really enough to write one good factoring agreement containing all principles of cooperation.
Finding a good partner in business is not an easy thing. And it is the same when it comes to finding of a professional and reliable service provider. The great number of various offers available on the market allows for optimum selection of the Factor that will provide your company with the service that it needs. Therefore, it is worth spending some time on looking at the potential partner carefully.
Published on: 28 April 2014