This is the fourth part of a video series Gibraltar Business Capital has produced and launched to educate small and mid-market businesses about factoring – a valuable invoice-financing solution that helps business owners navigate the sometimes rough waters they face in growing their companies.
Gibraltar President Scott Winicour gives tips on what companies should be thinking about and looking for when searching for the best factoring company to meet their needs.
Many times, businesses look mostly at costs and liquidity when searching for a factor. Winicour agrees those are important issues, but stresses that someone you trust is going to be the best partner you can hope to find.
“Businesses never go exactly according to plan,” Winicour points out. “You want to work with a factor who is going to be your capital partner, who is going to adjust with the seasonality, peaks and valleys, and the surprises that happen in your business.
Spend time interviewing the decision makers of the businesses and getting comfortable with their history and their equity partners, he says. And then spend more time finding out how factors have dealt with both big changes and negative changes in other people’s businesses.
For more in-depth information on factoring, click here to watch the 13-part video series and get answers to the top questions related to factoring including how factoring works, how Gibraltar evaluates risk, and Gibraltar’s unique approach to factoring.
When you’re ready to find a partner who will stick with you through challenging situations, click here to contact us today and request a factoring quote.