Just as you would with any other financial product, you’ll want to choose a factoring company with as few unnecessary fees as possible and that has low fees overall.
Unlike other financial products, you have a few additional elements to consider. The first is whether you plan to use invoice factoring only occasionally or if you plan to use it to smooth out your cash flow regularly. Some factoring companies are better for the first scenario, while others are better for the second.
Finally, you’ll also want to consider who is responsible if your customer doesn’t pay an invoice. See the previous section for more info on recourse vs. non-recourse factoring.