Those of you that have tried to obtain a PO financing line have probably been shocked by the disparity of costs. One of the biggest costs can be the cost of getting approved.
This is known as the due diligence cost. Some firms charge thousands of dollars (from $5,000 to $30,000). Other charge a few hundred dollars.
An interesting detail. I have not seen ANY MAJOR DIFFERENCE in the type of quality or Service based on these costs. Meaning..... Their services are pretty much the same and equally good (at least the ones that I know)
Interesting, huh? So caveat emptor.
Some articles for your reading...
1. Financing For Your Security Guard Agency
2. What Can an Invoice Factoring Company Do for You?
3. Invoice Factoring For Business Growth
4. Factoring Invoices - Financing for Small Businesses
5. Freight Broker Financing Alternatives
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