If your company is a business-to-business (B2B) company that factors your invoices, you already know the benefits invoice factoring provides for your business. But while numerous companies offer invoice factoring, not all factoring companies are the same. With each company offering different levels of industry expertise, service and costs, choosing the best factoring partner for your business can be challenging – especially when you’re already locked into a contract.
Your factoring partner should be an integral part of your business, and you should feel confident and empowered in your decision to work with them. Whether your current contract is approaching the termination date, you feel your current provider isn’t a good fit, or you are simply curious about what other options may be available, there are a few key things you should know when you consider switching factoring companies.
When is the right time to switch factoring companies?
As with any contractual agreement, the short answer is… at the end of your current contract. However, the time to start thinking about switching is TODAY. Once you consider a change, take the time to review your current contract. Many factoring companies auto-renew their contracts and often require written notice of cancellation anywhere from 30 days to 120 days before the renewal date. It may be a good idea to give even more notice to ensure a smooth and seamless transition. The switch may take time and a smooth transition will depend on a variety of unique factors, so plan on giving early notice to guarantee a bump-free transition when your contract officially ends.
How do I change factoring companies?
The process will be different for every company; however, in an ideal situation, you would have enough time to make a well thought out decision about your next factoring partner. While you research, assess the services your current factoring company provides and compare them to the service levels of the company (or companies) you are considering. Compare the process for submitting invoices and documentation and the turnaround time to receive your money. Take note of any additional products and services, such as fuel cards or invoice processing. Additionally, thoroughly review all documentation that requires a signature with an attorney to ensure there isn’t any language that could lengthen your contract or impose fees and penalties.
After you have made your decision and given written notice, the process should involve open communication between both your current and new factoring companies to shift over any outstanding invoices and cash received after the transition. At CFI, we do our best to represent you as your new factoring partner to ensure that you have an easy and smooth transition. We will assist in facilitating your exit from your old factor and prepare you for a seamless transition so you can do what you do best, operate your business.
Why should I switch to CFI as my factoring partner?
We understand that switching factoring companies can be time consuming, and that’s why CFI is committed to being your factoring partner for the long haul. Backed by the Commercial Credit, Inc. (CCI) family of companies, we have both the resources and versatility to meet your individual needs and accelerate the growth of your company.
Service is the key to why CFI remains a premier factoring company. We take the time to learn your business and your challenges and provide each of our customers with a dedicated account manager. Our direct-line account managers know you and your business, and they answer the phone when you call, ensuring that you get the responses you need when you need them.
Your relationship with CFI grows with you. Follow your roadmap to financial success through invoice factoring and asset-based lending.