Staying Competitive in Today’s Factoring MarketOnline UCC System, Due Diligence
We welcome Asonia Credit Data to our blog today to discuss ways to stay competitive in today’s factoring market.
The factoring market is expanding rapidly, with an almost daily addition of new players. This steady influx of entrants has created a more competitive factoring market, with lower rates and tighter margins. Today, you have to do more with less income just to stay in the game.
Lowering Costs Is Key in a Competitive Factoring Market
Finding ways to save is a necessity to remain competitive in an era of shrinking profit margins. One way to do so is taking a thorough look at your current service providers to ensure your hard-earned dollars are being spent in the most effective way possible. When you do, consider all of the following:
- Weigh cost vs. value – If you’re paying for services you don’t need or don’t really use, you’re not getting good value. For example, paying for 15-page credit reports when only one or two pages contain relevant information that’s usable for making credit decisions doesn’t represent a fair return on your money.
- Comparison shop – If you don’t take the time to compare service providers on a routine basis, you may be missing out on the latest advances in technology that can significantly reduce your overhead costs. Although it’s a time-consuming hassle to vet new providers, making those inquiries could pay off in big savings.
- Escape your comfort zone – It’s easy to fall into a familiar, comfortable routine with your service provider, especially when they’re deeply rooted in your day-to-day processes. When you’re stuck in that mindset you may be missing out on myriad opportunities to increase efficiency. If another vendor can help you streamline essential processes, you’ll cut costs and increase your profitability by making a switch.
- Consider industry insight – Think about whether your current service provider really understands the industry. If you’re dealing with a vendor who’s entrenched in the industry, you can access invaluable intelligence that would be otherwise unattainable. An industry-smart vendor can provide alerts that give you a heads up on the latest scams, fraud schemes, and pitfalls, and those timely warnings can reduce losses and protect your bottom line.
- Factor in customer service – If no one returns your phone calls, or you can’t get timely answers to questions or adequate training for your staff with your present service provider, you’re wasting both time and money. Cutting costs doesn’t mean settling for mediocre service. Look for an affordable vendor who’s willing to go the extra mile, such as making a phone call to a data contributor on your behalf, answering questions so you don’t keep customers waiting, or offering critical insight when you need to make a credit decision.
- Demand accuracy – Access to transparent, dependable intelligence and high quality data is an absolute necessity for your critical day-to-day decision making, so make sure what you’re paying for is reliable, fresh and accurate. Factors should look for services that provide for a complement of the most advanced algorithms, technologies and manual updates to scrub and verify data not weekly, not once a day, but all of the time.
At Ansonia Credit Data, we’ve developed business credit reports and credit management tools that meld cutting-edge technology with current and accurate data.
To learn how our innovative offerings can boost your productivity in today’s competitive factoring market, please contact Tinamarie Sulpizio at email@example.com and take advantage of a free 10 day trial of our innovative business credit reports by clicking here.