Though it has a history of use going back hundreds of years, factoring accounts receivables remains a puzzling activity to many in part because of confusion and misinformation. After all it makes sense that if a person doesn’t know a lot about a particular subject matter, they are more likely to view it as difficult or too complicated. Despite its reliability and dependability, some bad apple companies did a disservice to the industry at large by adopting bad practices that resulted in giving invoice factoring a bad reputation.
No More Hidden Fees with Factoring Receivables
Some of these shady practices may have involved faking a late client payment to bump up percentages and penalties. Other mistrust issues may have developed from the invoice factoring company not being forthcoming or clear about the fees they charge for various services, such as charging for the processing of each factoring receivables transaction. Lack of transparency can lead to suspicion, doubt, and accusations (both real and imaginary). As a result of a few bad apples, invoice factoring gets an unsavory reputation become one of those kinds of businesses best to be avoided.
Online Account Management Systems Bolster Trust in Invoice Factoring
Thanks in part to new technologies, new attitudes about finance and a new breed of small businesses, factoring accounts receivables has found new life and is today a popular, fast-growing financing option to many businesses. Part of this is due to the adoption online tools such as account management systems that place an absolute premium on transparency.
Monitor Every Penny with Today’s Factoring Services
By using these various Online Account Management Systems, businesses can readily see the fees they have to pay and how much, when a client pays its bill, how much credit a client has, and much more. As a client, you can log in and view the details of each and every transaction so there is no hiding of fees or wondering about what happened to the money from that client. Though not all invoice factoring companies use such a system, most do and are not become the norm.