How long a company uses factor financing varies. Usually it's for a set period of time but some companies, particularly those with uneven cash flow or limited staff, actually prefer to have a long-term factoring arrangement. They'd rather spend a little more and forego acting as bill collector. In the case of Sun Nurse, Johnson doesn't see a future without his factor. We don't plan on stopping using Oxford.
Factoring is a big business.
In fact, the current market is fairly competitive, factor expert Mace Edwards says, which means it can be an ideal time to use a factor. To get the best deal, of course, means you must do your homework. Talk to several factors and negotiate with them to get the best terms. Finally, once you've sign on with a factor, remember to renegotiate as your company's status changes. Michael Johnson's traveling nurse business is growing exponentially.