Any tips on factoring my accounts receivable?
I would like information on factoring my accounts receivable. I have a law firm with receivables in the high six fiqures because clients pay in instalments due to the nature of my immigration practice.
Get the working capital your business needs from Entrepreneur Lending, powered by CAN Capital. Learn More »Things to consider when looking at factoring receivables include the fees you are going to be paying your factoring company. Factoring companies normally charge higher rates when the receivables are from individuals and "high risk" clients. So make sure to shop around as the fees can vary greatly. You will also want to understand the fees you'll be assessed if your clients do not pay within the agreed upon terms and become "past due".
Have you considered other options for minimizing your receivables such as accepting credit cards so you get paid now? Or partnering with a finance company that can finance your fees and then it is the finance company's responsibility to collect?