Choosing the Best Factoring Companies
You’ve decided your business can benefit from invoice factoring. Okay, so now what? There are so many factoring companies out there, how do you decide who to work with?
Choosing a factoring company should be done carefully. You want a factor that can provide more than just funding. There are companies out there that claim they are the fastest, easiest to use, and most technologically advanced. However, be careful – in the rush to get cash, look out for high fees and a lack of personal touch. These factoring companies charge higher fees to cover losses they experience exposing themselves to poorer quality clients because they underwrite so quickly. There’s also a lack of personal touch that we believe should come standard with any financing relationship. Without it, you can be left wondering why certain invoices were rejected for funding or your credit facility was suddenly reduced. Often it’s better to be able to speak to a knowledgeable relationship manager than to have a flashy dashboard.
Why Harper Partners?
We named ourselves Harper Partners (not Harper Capital, Funding, Financial, etc) because we see ourselves as just that, a partner to your business. We’ve helped our clients with many business-building items outside of providing capital.
We asked ourselves: “If there are angel investors, why can’t there be angel lenders?”
Below are just some of the pro bono, value-add services we’ve provided to our clients:
- Prepared model templates and general fundraising materials to help our client raise equity
- Introduced clients to leads in our network that led to immediate revenue opportunities
- Walked client’s CFO through our custom cash flow model template that helped him project business cash flow
- Introduced client CEO to equity investors (venture, growth and private equity) in our network
- Referred clients to banks offering the best terms when they became eligible for bank financing
In addition to partnership benefits, we’re efficient and fast. We can approve credit facilities up to $5 million within 5 business days. For a line amount below $500,000, we approve even faster. You will have your money within 24 hours once the facility is set up, with same day wiring available upon request. We offer a seamless user experience. Uploading invoices for funding, monitoring your funds outstanding, and getting notifications are all a breeze.
Monitor your outstanding advances, submit invoices for funding, and receive notifications all from our easy-to-use dashboard.
Your Harper Partners credit facility will grow as your business grows. In addition to increases in size, the factoring fee rate quoted at the start of our relationship will decrease over time as you do more volume, your business grows, and you develop a track record with us. We’re backed by an FDIC insured bank. Once you’ve reached a point where factoring may not be the right fit anymore, it’s a seamless transition to ABLs and other types of bank financing. All your documents are already on hand so the transition is seamless.
Another benefit of factoring with Harper Partners is flexibility. You can pick the invoices you want to advance money on. Only request advances when you need it. For instance, if you need cash to cover next week’s payroll, you can pick a smaller invoice to factor. If you need a larger amount to take on a big order, factor a larger invoice or several invoices. The control is in your hands. Advance requests become cash in your bank account within 24 hours (same day wires also available).