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Here are
some of the misconceptions that we hear:
Myth: If you use a factor, their
interaction will offend and alienate your customer.
Fact:
Again, this myth is not an accurate depiction of our accounts
receivable factoring service. The goal of any professional
funding source is to assist you in growing your business, with
current and new clients. As a result, it is in their best
interest to help you succeed, but providing not only working
capital, but other services such as credit qualifying, credit
insurance, online reporting, lockbox payment processing and
others. It is illogical to assume that a professional
factoring company would ever “offend” or aggravate your client
with calls that would be considered hostile or unprofessional.
The fact of the matter is that a professional factor should be
able to over time improve your cash flow cycle without any
direct “pressure” on your client. This is because the payment
process becomes much more organized, streamlined and
automated. In addition, the ability to qualify a prospective
client before you sell your product or service allows you to
screen out the chronically tardy client or bad debt risk. Over
the course of the financial relationship you will have with a
professional factor, this reduction in your average days
outstanding [on your Accounts Receivable] will reduce your
funding costs and results in higher profits to you.
Finally, due to the confirmation of an invoice at the point
where the product has been sold or the service has been
rendered by the professional factor, the numbers of disputes
that occur [and often avalanche into a late payment] are
minimized. An accounts receivable management company as your
partner is much more like to successfully resolve payment
and receivables issues in ways that are acceptable to your client. Often
times, clients find it difficult to remain unemotional about a
late payment from a specific client; our job is to remain
calm, professional and diligent in every communication with
the client. Our factoring client surveys confirm that this is
the approach we consistently use with all client interactions.
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