By the way, I am not suggesting that you should not evaluate a number of invoice factoring companies to find the most competitive ones. I think that you should! However, submitting a whole bunch of applications before doing a proper evaluation can be time consuming for you and the factoring companies. And more importantly, it does not always get the results you want.
In my opinion, a better strategy is to hold initial conversations with a few factoring companies and evaluate them by phone. You can learn a lot just by talking to them on the phone and asking the right questions. Here is a list of 7 questions you should ask your factoring company. This is just a start, of course. You should also come up with your own questions and make sure that all of them are answered.
Then, based on your phone interviews, select the top two or three companies and submit your applications to those. Three is probably the largest number of applications one can probably manage. If you want to use competition to your advantage, there is nothing wrong in telling the sales person that you have interviewed a number of factoring companies but only applied with the top two (or three) to see who gives you the most competitive proposal. This will show that you have carefully evaluated companies and selected the top contenders. This shows that you are a sophisticated buyer and will probably get you better proposals than just sending an application to anyone and everyone you meet.
