I came across an article in a UK publication by the Federation of Small Businesses that does an excellent job of walking a prospective candidate for factoring invoices through the process. The author takes a step-by-step approach and cautions the readers to make a case to the factoring agents that positions their company as viable in the long term. Any indication that the use of factoring invoices is a desperation move to keep the company afloat will put the client in a poor negotiating position.
The article goes on to explain that a business owner should definitely negotiate a rate that is acceptable and never to take the first offer. It is advice that recommends a level-headed approach and is definitely worth reading even though the target audience is in the UK. The basic principles of invoice factoring still apply.
