Factoring Invoices

GaryBrad

I have just found out about this service called Factoring and was looking for someone that has had a good experience with a reputable Factoring Co. I appreciate any suggestions. If you like you can email me at Gt4615@aol.com.
Thanks Gary

Grumpy

WTF is Factoring?

Is this cleverly disguised spam... Spam 101, first post a thread asking a QUESTION to see if there is any interest in the subject. Then if there are any replies another poster comes in and answers the questions giving as much referral to a company or link as they can get away with.

GaryBrad

Factoring sounds like it could be a great bsuiness tool. I have a small glass restoration business and I work primarlily for local builders polishing scracthes from glass and mirrors. The builders I work for can't seem to get accounts payable running smoothly so I sit and wait for my money for between 40-60 days. They all eventually pay but we all know that our personal bills are not so flexible. I want to try a factoring company and thats why I asked If anyone has used one. So don't get your undies in a wad over thinking that I have some kind of allterior motive to my question, easy boy.

Mike Finley

Ugh... I can't imagine anybody really needs such a service. Why in the world would you need to do something like this? Have you figured out how much this actually costs you? Think about the costs involved 3% of the gross invoice could easily amount to 10% of the net profit, all for the sake of getting you money quicker??????

Wouldn't you be better off just managing your cash flow better, or better yet managing your builder clients better? How about getting a deposit up front? Are you charging them interest for not paying you on time?

Bob Kovacs

How about just adding on 3-5% upfront to the slackers who take 30-45 days to pay? You get the higher rate, you just have to wait for it. Why take money out of your pocket just because they're slow payers?

Bob

nadonailer

Like Bob K said.......

__________________
"History does not long entrust the care of freedom to the weak or the timid”.
Dwight D. Eisenhower

Grumpy

Getting my panties in a wad is what I do child. Why do you wait for your money for 60 days? Add late fees at 30 days and File a lien at 45, that gets them off their asses.

If you are going to pay someone 3% to what give you a loan, or buy your recieveables... It doesn't matter what the goal is to be paid quicker right. Why not just give the customer a 3% discount to pay before the due date. That's something I'd never do but I'd also not sell my recieveables unless I had an account in complete arrears.

i_plant_art

i used factoring quit a bit in my business and it works d@mned well. I had a couple of companies that would take forever to pay i ran into this guy at a referal group i was a member of and got to talking to him... enedup using them..... heres how it works.....

Total job amount..... $10,000 factor the invoice for 80% up front ($8000) they hold 20% until we get payment. Once we get payment we take the check to them sign it over to them and we then get another payment of 15% of the total invoice(15% of 10000+ $1500they get the other 5% ( so they get $500 as their "fee" of paying you up front). when doing this there is some paper work to fill out nothing major copy of business license etc etc. Signing a waiver of rights that they can sue and collect debts on yourhalf and in your name if accounts are seriously deliquent etc etc. Over all it works out great i got paid up front and no longer had to worry about collecting any money they would handle all of it at no additional costs. all invoices were payable 30 days from the invoice date if late they would keep an additional 1% of the "holding fee"( the original 15%) so it was costly if companies didnt pay on time or were a few days overdue. Made life a whole lot easier for me....... Think of it like this say u did a $20000 job and you had $12000 in expenses from that job (payroll, gas equip.. supplies materials etc etc. why wait 30+ days for it to get back your 12k investment on someone else property plus your 8k profit when u can get it up front get your initial $$ back you paid out all for only $1000. To me it was well worth it. I dont recomend doing it on every job just select contractors or job/invoice total amounts above a certain limit. Any questions or if you want the company name and number email me bwhite@groundeffectsmemphis.com

MinConst

Is that a BINGO I hear in the back room?

__________________
Paul
Minichillo's Construction
Website
I will never leave you hanging!

JustaFramer

Just type invoice factoring into google. There are plenty of factoring lenders out there. This could be a good solution to quick cash at start-up but a continual use of these service is is just bad business.

hauoli63

Costs you more in the end like those "payday advance" companies ....



When we have someone who is slow paying, we have our attorney go after them ... keep him on retainer ....

__________________
~~ Lisa ~~

www.chantillyplumbing.com

JustaFramer

No a payday advanve is like 300-400% a year.

Factoring a invoice for 30 days is cheap at 3-4%. Unless you can get a 10g loan with no fee's.

Peladu

It's amazing how fast you will get paid when you walk into the office carrying a baseball bat and wearing a baseball cap backwards.

No need for Factoring at $1000 a job when a Louisville slugger costs $30, and is reusable.

rudy

SPAM

gutrman

Grammar?! Very easy to read post.

dadkins0005

obviously half, sorry more than half, dont work for big gc's. deposit up front? where dey do dat at? If you have to factor invoices just besure to include that in your bid.