In today’s market, there is no shortage of factoring companies. Customers looking for working capital have a wide variety of factoring companies to choose from, all of which compete in Allied’s target markets.
Not All Factoring Companies Are Created Equal
Outwardly, many factoring companies may seem the same, offering competitive rates and services. Unless you know the right questions to ask when evaluating a proposal, you might not be comparing “apples to apples.”
To accurately assess a factoring company’s business operations and proposal, ask the following key questions and see how their answers stack up to Allied’s:
Allied Answers
Question
Yes
No
Do you charge an application fee?
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Is there a monthly minimum fee and/or unused line fees?
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Can I choose which customers and invoices to factor?
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Do you offer a lower fee for customers who pay in less than 30 days?
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Do you require check clearance days?
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Do you assess an exit penalty if the client is approved for traditional bank financing or in the event of a merger or sale of the company?
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Do you charge an annual renewal fee?
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Do you charge a minimum invoice fee?
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Do you offer same day funding and posting?
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Do you charge from the purchase date of the invoice versus the issue date?
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Is purchase order financing available?
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Can you offer prime based pricing?
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Can you fund a $5 million facility without having to participate with another financial provider?
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Is a third party Customer Satisfaction Survey available for review?
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Have you been in business more than 18 years under the same ownership?
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Are you privately owned and operated?
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Do I have access to visit with the CEO/Owner?
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Does the CEO have firsthand experience in owning and managing other businesses besides factoring and finance companies?
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Factoring Fact
Allied’s Ideal Client
Our ideal client is a high integrity, owner-managed business with strong gross profit margins, proven products/services, a solid customer base with high customer satisfaction and accurate documentation of receivables.
