5 Key Traits of a Top Factoring Company (And How Viva Stacks Up)

Tens of thousands of small businesses across the U.S. say they regularly turn to invoice factoring for their business funding needs, according to the latest Small Business Credit Survey. And, the market is on track to nearly double in the next five years, per Grand View Research. Rapid growth in industries like transportation, construction, and manufacturing is fueling the surge.

If you’re exploring factoring for the first time, it’s easy to assume that all providers operate the same way. After all, factoring is known for delivering fast, debt-free funding without the red tape of traditional loans. However, not all providers deliver the same experience. Choosing a top factoring company makes a big difference.

In the guide below, we’ll walk you through what to look for in a great factoring partner and how Viva Capital measures up.

1. Reliable and Fast Business Funding

One of the main things that sets factoring apart from other common business funding solutions is its ability to inject cash into your business right away. In most cases, factoring approvals come through within a couple of days, and advances hit your bank account within a day or two of invoice approval.

Quick Invoice Factoring Services with Same-Day Payments

Occasionally, factors will go above and beyond in terms of speed. Approvals may only take a day, and payments can be made faster.

Viva Capital takes it a step further and can provide approvals in as little as eight hours. It also ensures that you get cash on the day your invoice is approved. This works especially well for businesses when there’s an emergency or a sudden, unexpected cash flow shortfall. It helps ensure you can cover essential expenses on demand, such as emergency repairs and payroll.

Flexible Factoring Options to Fit Your Needs

Some factoring companies expect you to factor all your invoices or tie you into lengthy contracts, while others limit you to just invoice factoring. At Viva, we take supporting your growth seriously. You’re in control of which invoices you factor and when you factor.

2. Transparent Factoring Rates with No Hidden Fees

In a typical factoring agreement, you receive your advance shortly after the invoice is approved. Your factor then waits for payment from your customer and follows up as needed. When your customer pays, you receive the remaining balance, minus a small fee for the service.

While it sounds straightforward, some factors complicate the process by using complex formulas to calculate or add fees. When you work with a factor that puts you first, things stay simple.

Simple Fee Structure for Predictable Costs

At Viva, we make sure it’s easy to calculate the cost of factoring before you factor and invoice. That way, you can make informed decisions and use it as a vehicle for business growth.

No Hidden Fees Factoring

Sometimes, additional fees aren’t clarified in advance. For instance, you might discover after the fact that there’s a charge for customer credit checks, or you’re tied down to a single payment method, and there’s a fee for it. At Viva, we believe clarity is essential for building lasting relationships, so you always know exactly what you’ll pay.

3. Personalized Customer Support and Expert Guidance

A good factoring company has strong customer service and people to walk you through things as needed. The Best factoring company for small businesses goes beyond this with white-glove service.

Dedicated Factoring Support with Account Managers for Every Client

Being able to reach out to customer service as needed is one thing. Having a dedicated account manager who gets to know your business and your customers and can identify the right solutions for your unique needs is another. That’s the level of service you get with Viva. You’re actually managed by an account manager at the start, so you have a name and a direct contact to reach out to whether you have a question about factoring or something happening with one of your invoices.

4. Factoring Solutions for Multiple Industries

Being able to work with a factoring generalist has its perks, especially if you’re in a niche industry. However, it’s genuinely transformative when you find someone who truly understands your industry and how you operate and provides tailored solutions.

Industry-Specific Factoring Solutions for Trucking, Staffing, Manufacturing, and More

One thing people often overlook about receivables is that there’s always some risk of non-payment. Moreover, payment terms are different for individual industries. For instance, many industries operate on net 30 payment terms. That means you give your customers 30 days from the time of invoicing to pay their bill. This might be the case if you operate a manufacturing company. However, depending on your niche and the customers you serve, you might offer net 60 or even net 90 terms. On the other hand, if you operate a professional services company, such as a staffing firm, net 60 or even net 75 might be normal. Working with a trusted factoring provider like Viva, who understands these nuances, ensures risk is assessed with greater accuracy, so you receive better terms.

But, let’s say you’re in the transportation industry. Getting paid quickly is essential, but you have unique concerns that other businesses don’t, like keeping fuel costs low or even ensuring your drivers can get fuel as needed while on the road. At Viva, we pair our factoring services for trucking companies with fuel advances and fuel cards, so you can keep your wheels turning and more money in your pocket.

Custom Financing Options for Different Business Models

Invoice factoring is often the best choice for businesses that need cash quickly, want to avoid debt, or don’t qualify for traditional financing. But, it’s not right for every business or situation, and your needs may change as your business grows. A good factoring company will grow with you. At Viva, we also offer a variety of other funding solutions, such as asset-based lending, short-term loans, and equipment financing, so you can always find the right fit for your needs.

5. Trusted by Businesses Nationwide

The rapid growth in the factoring industry today has led to a surge in new factoring companies. Unfortunately, you won’t likely find the factoring company with the best customer reviews there, as they don’t all offer the same level of service, and many do not stand the test of time.

Proven Track Record of Helping Companies Grow

A strong factoring company that’s dedicated to its clients will have years of dependable service and a track record to prove it. Established in 1999, Viva Capital is a member of the International Factoring Association, which demonstrates our commitment to providing the highest level of service and treating our clients right. We also have an A+ BBB rating, countless testimonials, and success stories that help demonstrate the level of expertise and care we bring to the table.

Partner with a Top Factoring Company for Your Business Funding Needs

If you’re ready to accelerate your cash flow and take your business to where it needs to go, Viva Capital can help. To kickstart the process, request a no-obligation quote.