Often setting up a new factoring relationship for your accounts receivable financing may be a very delicate series of negotiations, diplomacy, and tact. There could be many parties involved, including old past liens that are still in filed, previous or current lenders who are not privy to your transition plans, partners who do not agree to terms, vendors whose processes can’t be disturbed, tax problems that have to be tended to before any financing considerations can be solidified.
Knowing how to keep all these balls in the air without letting any hit the ground is a skill set that is equally important to all other considerations when making a decision to work with a particular factoring company. Understanding all the elements that go into a successful factoring relationship will save you time, headaches, and money. It isn’t always just about the rate.