Billing direct / account receivables

I think you may be on to something there. Utilizing both in certain situations might just be what I'm looking for.

 

I think the main thing is to find a system that works for you and you are happy with.You can always change later if you want too.

 

I don't know, it depends on your needs.

Here is how I use them. Maybe this will help you see what my point is.

My needs are such where I don't unless I have a really really bad previous month and can't wait the 60 day billing cycle to come to an end.

I use a recourse factoring company for that and if it gets kicked back, I can deal with it because it usually happens after the 60 are up.

I have only used the service twice in the last 10 years.

Why do I write long paragraphs?

I know it is a bad habit not to be concise but it really has to do with how I was educated in university, all of my studies had assignments that required long explanations and I got into this bad habit of over explaining things.

ALSO got to tell you my kids hate it to the point that they will tell me to shut up after they got their answer

 

Why not non-recourse?

 

my factoring co has both,non recourse and recourse
now a word from my experience,when I send in the invoices to my factoring co,I also send in a copy to the brokers ap dept.It speeds things up and saves me money.I call that keeping the factoring co honest.
The longer it takes a broker to pay,the more a lot of those factoring companies charge.Some factoring co has tricks of the trade to get more money from ya

 

Another person in our pockets?! Say it ain't so...never would have guessed it. I saw a post of yours a while back where you shared your strategy. It's been duly noted and appreciated.

 

My guess would be cost. By the time a customer hasn't paid there is money in the bank again to repay the loan from the factoring company. Then normal business applies and file on the bond or whatever to get the money from the delinquent broker.

 

Makes sense but with non-recourse he would be off the hook anyway, right? Seems like a moot point.