Without naming any names, some invoice factoring companies use accounts receivable financing terms as if they were favorable to the client – but they are not. For example, some companies talk about how they offer a “flat rate” factoring program, implying that a simpler “flat rate” factoring program will help clients. In fact, a flat rate factoring program often times costs the client more than a variable rate. Thus the cost of the perceived “simplicity” of a flat rate factoring program far outweighs the benefits to the client.
Another trap that some factors set for clients are the “super low rates” designed to attract unsuspecting clients and tie them up into long-term contracts with countless hidden fees that drive up the cost. In the end, these “super low rates” end up costing more time, money and headaches than standard rates with no hidden fees.
Above all else, you want to deal with a straightforward, honest accounts receivable factoring company that operates with the highest of business funding ethical standards.
MP Star Financial is committed to providing you with quality business funding according to the honorable principles of the International Factoring Association.
This means that in all of our accounts receivable factoring transactions, we:
- treat everyone fairly,
- have no hidden fees,
- keep your private information confidential,
- follow best practices in accounts receivable factoring, and recommend the best possible options for your company,
- promise to provide you with prompt and honest account information and
- follow all truth in advertising standards.
Discover more about the ethical standards of the International Factoring Association followed by our accounts receivable financing company, MP Star Financial. And if you have questions about the structure of an invoice factoring proposal or your current provider’s contracts or practices call me, Gage Price, at (800) 833-3765 Ext. #150.