The factoring industry has intensive competitive characteristics. The competition are among large major national factors, banks, financial servicing companies as well as small local factors. The industries compete on all levels of elements including price, basis of services, terms, structures and innovation of services. There is no doubt that lower pricing can attract new business. But what can make the clients stay are the quality and promptness of the services.
Information technology can help factoring companies in achieving outstanding services.
Using leading information technologies is one way to gain competitive advantage. Another critical success factor is the effectiveness and promptness of collecting from past due receivables. Like all other business, the major critical success factor is fast, high quality client and customer services. The factoring company has to respond promptly to the inquires and needs of the clients and customers. The desire of attracting new business, improving production efficiency and most importantly continuously improving clients and customer services initiates and drives the advancement of information technology in the factoring industry.