Freight Factoring: Managing Relationship with Your Customers
Will the Factoring Company respect your most valued Partnerships
A professional factoring company knows the importance of your customers and places great effort in maintaining healthy, positive relationships.
Understandably, one of the most common concerns about using factoring is how it will affect a client’s customer relationships. Most successful businesses grow by carefully serving their customers well and carefully managing their customer relationships. A professional factoring company knows the importance of this and places great effort in maintaining healthy, positive relationships. A professional and reputable factoring company could even improve the working relationship with their client’s customers’ accounts payable departments. Professional, well-mannered communication is one of the hallmarks of a good factoring company. It is in the best interest of the factoring company to deliver the highest levels of expertise and service, not only to their client’s company but also to their client’s customers.
As part of the invoice factoring process, all parties subject to the transaction must be notified. Notification occurs when the lender notifies their client’s customers that their payments for the services provided by the client should be paid to a third party lender (the factor).
A good factoring company will handle this process without complicating client-customer relations
How smoothly notification goes with a client’s customers depends mainly upon the experience, methodology and professionalism of the factoring company that has been chosen. A good factoring company will handle this process in a straight forward professional manner without unnecessary complications to the client – customer relationship. A client’s customers are likely familiar with factoring companies already. Most customers actually appreciate the professionalism and experience of working with a factor’s accounts receivable department.
All factoring companies will have a verification process in which invoices, bills of lading and rate confirmations are validated prior to advancing funds. This involves a direct relationship between the factoring company and the client’s customers. It is highly critical that the client is able to trust the factoring company to manage a healthy relationship with their customers. A professional approach based on respect and cooperation must be taken by a factor to develop non-disruptive interaction with a client’s customers.
Copyright 2019, Accutrac Capital Solutions Inc.