Every day, business owners juggle the cashflow demands of their companies. More than ever, they are turning to invoice factoring as a trusted solution, even when banks decline loans and overdrafts.
If you are considering invoice finance it pays to be prepared. Save time and money by understanding these five tips before making application to factor your invoices:
The Application Form
The first step in the process is helps us get to know your company. This might start with a phone conversation but will eventually be formalised in a factoring application. Complete the application form carefully and accurately as this could make or break your application. You might be asked for:
- Company name
- Director and shareholder full names (including middle names)
- Type of Business
- Information on Your Customers
The aging report provides the detail that goes along with the initial application. This report reflects the amounts owed by your customers and the length of time it takes them to pay on the invoices. A customer that pays within 30 days is more attractive than a customer that takes 45-60 days.
Keep good documentation
It is essential to have business documents such as signed customer contracts, purchase orders, and customer information at the ready to back up your invoices and expedite the application process .
Moreover, ensure your contracts and paperwork aren’t missing important details. Make sure your documents are accurate and include both first and last names of all contacts, along with other relevant contact information.
Be on the same page as your customers
You need to make sure your customers are in agreement about the services or products on the invoices you submit for factoring.
If customers do not verify an invoice you submit for factoring, the factoring company can reject it. Invoice finance companies pay attention to your customer relations. They want to see that the company is on good terms with its customer base.
Following these tips before you submit your application can help you get the answers you need from the factoring company you have applied to. Factoring companies are looking for are looking for potential clients with a low investment risk. Prove your company is a good fit by doing everything in your power to look good on your application form.
To discuss the funding options available to your business. Please do not hesitate to contact us on 0161 280 4220 or firstname.lastname@example.org
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