Let’s face it, any relationship is tough. So when you enter into a finance relationship with a factor, you better know who you are dealing with. Selecting the right factor is almost like picking a partner or picking a spouse. Smart business owners will do their due diligence, ask the hard questions and read any agreements before signing.
Make sure the factor has the backing and the financing. Don’t be afraid to ask where they are getting their money from; how long they have been in business and most important ask for referrals. The good factors will give them to you, the bad ones won’t.