For businesses exploring invoice factoring as an option, a common concern is how it will impact the relationships with their customers. However, when invoice factoring is implemented correctly through a trusted partner, it can drastically improve those relationships.
Invoice factoring not only provides consistent cash flow, it can also free up resources to focus on what really matters—making sure your customers receive the best service possible. To help make the transition to invoice factoring smooth, consider taking a few simple steps to get you and your customers on the same page before they receive communication from your factoring company.
Communicate Clearly to Customers
The key to easing customer concerns about invoice factoring is to explain the process in advance and as clearly as possible. The transition should not come as a surprise. Here are a few key points that should be communicated:
1. There Will Be No Changes to Products or Services
Ensure customers that they can expect the same level of customer service and attention to detail that has always been provided. Invoice factoring will not affect the products and services being offered will not be affected.
2. The Only Thing That Changes Is Who to Send Payments To
Remind customers that the only impact invoice factoring will have is where to remit payment. They will continue to have the same customer service representatives and overall experience with your company in every other facet.
3. Invoice Factoring Will Allow for Services and Infrastructure to Expand
Assure customers that working with an invoice factoring company will enhance cash flow and provide stability from month to month. This will allow you to make improvements to the business that will benefit them, such as expanding services or growing infrastructure. It also gives your employees more bandwidth to focus on customer needs.
Choose an Invoice Factoring Company You Can Trust
Make sure that the factoring company you choose takes the same care with your customers that you do. Keeping your customers happy is the key to keeping your business running.
Do some simple due diligence on the factoring companies you are considering working with. Ask them for client references, both from existing and past clients. Reach out to businesses in your same industry and find out who they are working with. Lastly, talk with your local community bank and seek recommendations of trusted factoring companies.
Choose TXP Capital
At TXP Capital, we know that maintaining meaningful business relationships through the factoring process can be tricky. The good news? Invoice factoring and customer service are our specialties! We have the experience needed to help you conquer cash flow and keep your customers satisfied. Contact us today to learn more about TXP Capital’s funding solutions.