Running a successful business depends on your ability to make smart decisions. This includes who you partner with, which vendors you order from, and the people you hire.
For small to medium-sized business looking for solutions to their cash flow problems, this also includes the company you choose to provide financing services like receivable factoring.
There are many different companies out there who claim to provide “short-term financing solutions” like factoring and merchant cash advances, but not all of these companies have your best interests at heart. Some are just out to make a buck (imagine that!) and they’ll employ dubious practices to achieve their goal.
That’s why it’s important to understand the role regulations play in the factoring finance industry, and the governing bodies (if any) these companies answer to.
How Receivables Factoring Companies Are Regulated
Because we are considered an alternative to conventional finance solutions, like bank loans, receivable factoring companies like The Commercial Finance Group aren’t regulated by a government body in the formal sense.
Instead, the collective and individual activities of upstanding factoring receivables companies are governed by formally recognized associations that join together to execute best practices. The International Factoring Association and the Commercial Finance Association are two of these member-driven associations, which exist to provide training and tools to their members.
The Commercial Finance Group is proud to be a member of the International Factoring Association, which has been dedicated to assisting the factoring community by “providing information, training, purchasing power and a resource for the Factoring community” since 1999.
Contact the Commercial Finance Group in Atlanta to learn more about how our factoring company operates to create viable lending solutions to your cash flow problems.
