Invoice factoring can be an effective means of improving your business’ cash flow when you need it most. Under this arrangement, unpaid invoices from your customers are given to a factoring company, which pays you a large portion of each invoice’s value up front. The factoring company then assumes responsibility for securing payment from your customers. It can help you immediately gain access to liquid capital, rather than being forced to wait for your customers to pay you. Factoring companies charge for their services by retaining a small percentage of the invoices’ value and may also include some flat administrative fees.
Getting the most out of accounts receivable factoring means selecting a provider that will offer the most favorable terms for you. However, it isn’t always feasible for a company like yours to perform all the due diligence needed to compare factoring companies, so you have all the details you need. This is why many companies choose to work with a factoring broker to help them sift through their options. But what is a factoring broker?
A factoring broker is a professional who serves as an intermediary between a business and factoring companies. These brokers work to match a client’s needs with the solutions provided by various factoring service providers. Although this may seem like a reasonable step to take to ensure the best possible outcome, the truth is that working with a factoring broker can get in the way of achieving your financial goals. In addition to the added fees you will need to pay, you also lose some control over the process because you aren’t working directly with the factoring company.
Read on to learn more about why factoring brokers may be an unnecessary middleman for your business and why working directly with Porter Capital for your financing needs offers the best solution.
Factoring Broker vs. Factoring Company: Key Differences
Many businesses don’t know where to begin when they decide to take advantage of invoice factoring to fund their operations. They might believe that working with a factoring broker represents the logical first step of the process, but that’s often based on a misunderstanding of how the process works.
Factoring brokers don’t perform any recourse or non-recourse factoring services on their own. Rather, they serve as a go-between for the business and any factoring companies that may be vying for their attention. Brokers typically work with the client to determine their needs, and shop around on their behalf for a factoring company that may be capable of meeting those needs. Once one is found, the broker also works to negotiate terms for the factoring agreement. The broker, naturally, charges for these services. When added to the fees and percentage required by the factoring company for the actual services, this cuts into the funds immediately available for the business in need.
Businesses that choose factoring typically do so because they need immediate access to working capital to maintain their momentum and meet their financial goals. This process gives them a means to obtain the funds they are owed without needing to wait for customers to make payments. Anything that adds an extra layer of cost to this process means factoring becomes less effective as a strategy and prevents companies from unlocking its full potential. Brokers introduce added cost into the procedure, reducing the advantage factoring provides for many businesses.
Rather than go through the added trouble of negotiating through a broker, businesses who choose to work directly with Porter Capital for factoring streamline the process and achieve better results. We have the expertise as well as the ability to tailor our solutions to meet your precise needs, meaning there’s no reason to work through a middleman to get what you want. Without the added cost of a broker, you can gain the full benefits of invoice factoring and keep more of the hard-earned money you need to fuel your growth.
The Factoring Process With Porter Capital
Working with Porter Capital means you can benefit from our client-centric approach and proven processes. The experience begins with our seamless application process, which emphasizes speed and simplicity to make it as easy and painless as possible for you. Throughout the process, you’ll be in direct communication with our team of experts. This means you’ll have immediate access to support and expertise to help guide you, and you won’t have to worry about delays caused by working through a third party.
Our customer-centered philosophy means we tailor our services to meet each client’s unique needs. We have the industry-specific knowledge to customize what we do to fit your particular circumstances and requirements so you can maximize the benefits of what we do. There’s no need to seek outside help to find the best possible terms and services, because that’s what we already offer.
Benefits of Choosing Porter Capital Over a Factoring Broker
When you choose to work directly with us instead of through a factoring broker, you put yourself in a better position to benefit from everything AR factoring has to offer you. Our direct funding model is built to save you as much time and money as possible while still unlocking the as-yet-untapped potential of your accounts receivable. Without the added layer of complexity a broker adds, Porter Capital enables you to receive:
- Cost Savings: Without having to pay sizable brokerage fees, you have access to more of your invoices’ value. This means you have more breathing room for making large-scale purchases, meeting your payroll obligations, expanding your operations and more.
- Faster Funding: By taking a direct approach through our services, you can speed up the factoring process to a significant degree and eliminate red tape. In some cases, you may be able to secure the funding you need in as little as 24 hours.
- Customer Support: We offer personalized service that is tailored to your specific needs and available whenever you need it. Compare that with working through a broker, where it may take you a few days to get the answers you need. We pride ourselves on offering services that exceed what brokers can do, without the additional costs to you.
When taken all together, it’s clear to see why reaching out to Porter Capital directly makes more sense than trying to work through a third-party broker. However, there may be some situations in which a broker may seem like the better choice, but the risks outweigh the supposed benefits.
Understanding When a Broker Might Be Useful
The main reasons why a business decides to approach a factoring broker include a lack of knowledge about how the process works and the perception that its needs are too complex. However, what these businesses may not realize until it’s too late is that they don’t need to take the extra step of working with a broker.
Porter Capital offers an easier alternative. With our expertise and industry connections, we can help ease you into the factoring process so it’s easier for you to understand. We also have the skill and know-how to deal with even the most complex factoring requirements, so you can rest easy no matter how complicated your situation may be. We’re also committed to being transparent and honest with our clients.
Why Porter Capital is the Right Choice
If you’re interested in exploring the benefits invoice factoring can bring to your business’ cash flow situation, don’t waste your time trying to make arrangements through a third-party broker. We’re here to help guide you through the process and provide you with expert factoring services that fulfill all your needs.
We bring decades of experience and deep industry knowledge, meaning we have the problem-solving expertise to help you overcome your challenges in the most effective and efficient manner. We specialize in serving industries with complex and difficult invoicing needs, including the manufacturing, staffing and logistics sectors. Our professionals strive to provide the highest levels of customer service with complete and total transparency every step of the way. You’ll never have to worry that we will lead you astray or try to force you into situations that don’t make sense for your specific needs.
Porter Capital makes getting the funds your business needs through invoice factoring fast, easy and effective. If you’re interested in discovering everything a factoring service can do for you, skip the middleman and reach out to us today. Our representatives are ready and willing to do everything it takes to help you reach your financing goals.
