Credit Check Services from a Factoring Company

Invoice factoring is predicated on client customer credit checks. Credit checks are done on all customers whose invoices are offered for factoring. Credit checks are essential for factoring companies to avoid financial risk from their client’s customers defaulting on payment. The following are five key benefits to businesses by factoring company credit checks.

Credit Risk Management

Credit checks done by factoring companies help businesses manage customer credit risk. This is particularly useful in the case of new customers. The credit check service provided by factoring companies helps businesses to quickly assess the creditworthiness of new customers, lessening their overall financial risk.

Improved Cash Flow

The immediate access to cash and factoring line of credit offered by factoring company credit checks offers businesses secure cash flow management. If the factoring company has assessed a business’s customer as low risk, the percentage of the invoice that can be immediately paid out may be greater – up to 90%. A low-risk customer base can provide a growing business with improved cash flow when it’s most needed.

Credit Check

Professional Credit Analysis

The Professional credit analysis provided by factoring companies amounts to a cost-effective and valuable third-party financial management service. Risky customers can be immediately identified, helping businesses avoid debt on accounts receivables. This factoring service can also help a business build a risk-free or low-risk customer base over time.

Time Savings

Credit risk management from factoring companies also takes that responsibility off the business itself. This can be very useful for small businesses with less capacity to conduct timely credit checks themselves. Credit checks by factoring companies free up time for businesses to concentrate on doing business and can streamline the process of taking on new customers.

Customized Credit Limits

Customized credit limits on factoring lines of credit are based on the credit history of that business’s customers. This can help businesses manage their factoring strategy and enjoy the benefits of improved cash flow with confidence.

Not all factoring companies offer the same services, be sure to compare industry-specific factors in your area using our Factoring Guide

If you’re looking for credit check services from a factoring company, contact us for a factoring rate quote today.

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PREFER TO TALK? You can reach us at 1-844-988-5016


PREFER TO TALK? You can reach us at 1-844-988-5016