There are numerous questions to ask
- How quickly does the factor collect debts?
- What are their procedures in detail and do they suit you?
- Do you have online access to your facility?
- What other charges/disbursements are payable?
- By whom and where is your account to be handled?
- Does the factor have experience of your industry?
- What will happen if a customer goes over the credit limit?
- What period of notice must you give to end an agreement?
- What security does the factor require?
- What restrictions such as concentration limits are there?
- What is the advance rate %?
- What are the set up costs?
- How much will the facility generate in cash terms?
The above only represent a few of the many questions an experienced broker will be able to help you with.