Coming up with a smart business idea is not a problem but rather the lack of funds to bring it to life. Anyone can now go after his or her dreams thanks to factor funding companies which give business enterprises the money they need to do the work. Given the amount of money investors in the oilfield have to cough up, factor funding companies have to engaged. However, you ought to know how to choose a factoring company for maximum benefits. If you are trusting a company to make sure you get your payments on time, it should be a credible one. the factoring companies now have online reviews which you should peruse through before determining your pick. There cannot lack that one person who left a negative review on the website but this should not alarm you if there are many positive reviews. Make sure you have probed more into the issue to know what the company did about the negativity they received. Factoring companies ought to be partners in business who take their responsibilities seriously. There should be back-office support services like collections, treasury management, accounts receivable management, risk and credit analysis.
When talking about the experience the factoring company has, it does not mean just in their own practice but also in the business field you have made your investment in. You need a company that has worked with other oilfield investors before because this means the invoicing requirements will not be a new thing to them not to mention the factor that they will be well acquainted with the key players in the field.
It is important to know the kind of services you are seeking and they can be recourse or non-recourse factoring. A lot of the companies you will find will be specialists in recourse factoring and it simply means the client is liable for all invoices. What this means is that in case of disputed or unpaid invoices, they will be recoursed or sold back to the factoring client. For such a case, there will not be high risks but this is compensated by the high advance rates. When the factoring fee for non-recourse and recourse factoring programs are compared, the former has higher fees. You have to think about the speed in account setup. You will be in a hurry to get the money you want which is why you should not be working with a company that does not see the need to speed up the process. A lot of factoring companies will do this in a few days but this does not mean you should not ask about the waiting period.