Finding Invoice Factoring Companies
If you’re trying to find the best invoice factoring companies, you’ll quickly notice that there are a plethora of choices in the market today. They range from small organizations specializing in one industry to large corporations generalizing across a multitude of niches. The good news is that there are many options and one of them is sure to possess what you’re looking for. The bad news is that finding the right one can be a lot of work. As a result, many people start at the most popular place to find things…GOOGLE.
Performing a google search for invoice factoring companies returns 4 primary result types.
Reviews & Rankings
The first result type consists of ranking/review information. These results are often articles written by third parties that attempt to rank or review a number of financial organizations. The Business News Daily’s Brittney Helmrich’s 15 Factoring Service Companies to Consider article is a perfect example. While these types of articles can be helpful in obtaining a quick lay of the land, they are often very cursory. It only takes comparing a few of them to see that there is no obvious winner. That being said, they can be worthwhile in identifying prospective companies, but beware not to believe everything you read.
Lists
The second result type is the good old list. There are usually a number of these results and they simply list the names of invoice discounting companies with a brief paragraph about the financial organization. These sites can be helpful as they often organize companies by region and/or industry that can be quickly utilized in order to identify prospects that are clearly unsuitable. These sites typically have a link to the factor’s website which is a welcome addition as these lists don’t provide much useful information from which an intelligent decision can be made.
Brokers & Consultants
The third result type includes factoring brokers and consultants. These are individuals/companies that will help aid you in your search by connecting you with an invoice factoring company. A good factoring broker can be very helpful as they should have vast experience with a multitude of funding companies. As a result, if they listen to your situation and business needs, they are often able to help place you with the “right” funding source extremely quickly and can help you to avoid the “bad apples”. While this definitely sounds great, not all brokers are created equal. Therefore, be sure to do your own due diligence on any companies that a broker may recommend.
Invoice Factoring Companies
The fourth result type involves the accounts receivable factoring companies themselves. The placement of these factors in the search results is due mainly to how well they handle SEO, and is not necessarily a gauge of whether they are the “right” funding source for you and your business. That being said, grabbing the top spots in google search is no easy task and at least indicates that the company is able to execute a plan. While all of the other 3 result types are good places to start, at some point you’ll need to end up at the organization’s website to begin your due diligence and fact gathering.
Other Advice
As you can see, all of the google search result types have their place and can be utilized to help you find the perfect match for your business. While google can be a useful tool in your search, we recommend obtaining referrals from trusted sources as the best starting point. For example, another business owner in your industry may be able to recommend a quality funding source from their personal experience. Additionally, your CPA, banker, or attorney may be a wealth of untapped information. In any event, you’ll need to talk directly with the invoice factoring companies at some point and this is where you’ll need to be sure to ask the questions that will enable you to screen the “right” factors from the “wrong” ones.
At Orion Business Capital, we are committed to listening to our clients so that we can fully meet their unique needs. If you’d like to learn more about our programs, please call us now at (888) 515-7501 for more information about how we can help.