One question we often hear from contractors researching invoice factoring is “how will working with an invoice factoring company impact my clients?” The answer is simple; your relationship with your clients will be positively impacted by your partnership with an invoice factoring company. Here are a few of the benefits for your clients:
A construction factoring company provides reliable constant cash flow so you can make payroll and complete the contract.
When a contractor partners with a factoring company the contractor’s clients know they will have the cash flow needed to get the job done. Employees will not walk off the job because they are not getting paid and all the supplies will be there when they are needed.
A factoring company pays suppliers and subcontractors and obtains lien releases from their client’s subcontractors and suppliers.
An extra level of protection is provided for both the contractor and their client’s when the factoring company provides these services.
A factoring company implements checks and balances to make sure the projects are being completed as planned.
Factoring companies help to ensure that everyone is on the same page, the work has been completed and is satisfactory on a regular basis.
An emphasis on exceptional customer service.
The factoring company’s success is directly related to your success. The last thing they want is for you to lose a valuable customer. A factoring company is not a collection agency. They will make routine courtesy collection calls, but will not harass your customers for money. Maintaining your customers’ goodwill and confidence are extremely important to most factoring companies.