If your shopping for a factoring company, you need to consider the size of the factoring company. For our purposes, factoring company size refers to the credit size (or credit facility) that a factoring company offers. Factoring companies come in many sizes as we’ll see below. You want to find the right size as if you’re shopping for a snowboard or a set of snow skis.
Different Factoring Credit Sizes
Factoring companies range in size – determined by the size of credit they offer businesses. Very small factoring companies or micro-factoring companies specialize in credit facilities below $15,000. Normal or medium-size factoring companies offer credit facilities up to $1 million to $5 million. Large factoring companies provide credit facilities up to $10 million or more.
Why Factoring Credit Size Matters
If you’re looking for $10 million financing to grow your business, then you need to shop for a large factoring company. Since fewer factoring companies offer credit facilities for $10 million, you’ll need to conduct a nationwide search (unless you’re fortunate to have a large factoring company nearby). Large factoring companies will be very interested in your business because you’ll bring them the large fees on which they depend.
Let’s say that your business needs $1 million of accounts receivable financing. Most factoring companies fall into this credit size. The majority of factoring companies provide credit facilities up to $1 million to $5 million, so you’re not going to have a difficult time finding a factoring company that offers a $1 million credit facility. In fact, there’s a good chance you’ll find a factoring company in your state or area that will factor your business.
When it comes to financing needs of $15,000 or less, then you need to look for a micro-factoring company. Micro-factoring companies specialize in meeting the needs of small financing. They pride themselves on providing personal service and attention to small businesses. Larger factoring companies are usually more interested in their larger accounts, so you’ll quickly get pushed aside. Because micro-factoring companies are few in number, you’ll need to conduct a nationwide search for the right micro-factoring company.
Shopping for Factoring Companies
There are several ways to find a good factoring company. You can rely on personal referrals from colleagues and friends. You can search Google results in an attempt to find the right factoring company. The easiest and surest way to find the right factoring company is to search the factoring companies at FactoringClub.com. Factoring Club has all the information you need to quickly find a good factoring company to fit your business’s financial needs. FactoringClub provides factoring company locations, credit sizes, terms and conditions, contact information and much more.
Other Invoice Factoring Considerations
When shopping for a factoring company, credit size is only one factor. There are other factors you’ll want to consider such as location, industry, contract length, cancellation fees, monthly minimums, and factoring fees. After you narrow your selection of factoring companies based on your credit needs, then you can focus on the other factors such as location.
With the help of FactoringClub, you can find a factoring company in your home state or city. FactoringClub makes the process very simple and quick. For example, if your business is in California, you can quickly view the following searches to find a factoring company in your state or city:
FactoringClub.com is the premier source of information for invoice factoring companies. With factoring companies in most major cities and states, FactoringClub helps you find the right factoring company. Search our listings or call our factoring experts at (866) 748-7111 for assistance.