There is a tendency for business owners who can’t get invoice factoring from a particular firm, or are already with a factoring company who won’t give them what they feel they need – to start calling around to all the other factoring companies. Unfortunately accounts receivable finance companies rely on the same criteria to evaluate a deal. What doesn’t work for one factoring company will probably not work somewhere else.
Given the current commercial financing climate some account debtors are loosing creditworthiness making it difficult to provide ongoing advances against invoices. Additionally, in the recent past banks have structured deals that will not conform to invoice factoring making the transition more difficult. The impulse to get second, third and forth opinions persists, which is fine and expected, but understand the root issue and bring this up early in the discussion to save everyone time and effort. Most invoice factoring companies can quickly and easily assess the success or failure of a potential transaction.