anyone using a factoring company

Struck a nerve, did I? LOL

Seriously, I very deliberately tried not to phrase those things in a way that vilifies factoring companies. IMO most of the problems carriers have with the best factoring companies (excluding many more that are truly payday loan operators, if you know what I mean) is that they have improper expectations set by some really slick marketing, compounded by not really understanding their ongoing role and responsibility in the factoring transaction. Those differences usually come up as a result of either a service failure on the carrier, or a difficult customer, or both. A good factoring company has a structure that partners with the carrier to support a good outcome, others will build insurmountable walls to protect themselves.

My cautions about certain contract terms are really based on what level of trust exists at the beginning. Both parties are certainly expected to protect themselves. How far that goes is an indicator to me of what to expect going forward. At the end of the day, the factor assumes only the risk of an account's receivable total. It's just a loan. The terms should be appropriate to the balance on account and not waive due process.

Here's a (not so) funny story from when I was shopping for a factoring company. I had gone back and forth with the sales guy over a few days and was hearing everything I liked. It was looking good. However, I got stuck on the contract where it had an unlimited POA baked in. It was outside the sales guy's scope, so he had me speak to his manager.

My question was something like: "If we have a dispute, you can file paper and take everything I own, am I right? No lawsuit, no hearing, just take title."

Manager: "Yes."

Me: "Tell you what. I'll sign up today if you just strike that and replace it with normal recourse through collections and the courts."

Manager: "Sounds like you're planning to rip us off."

Me: "So you're calling me a criminal?"

At that point the manager's volume went up to 11 and much swearing and filth ensued for about 15 seconds, the time it took me to recover from the blindside tirade and reach for the disconnect button.

Obviously I did not pursue the services of that company any further.

Moral of the story: Deal with a lender that behaves like a pawn shop and you can probably expect to be treated like a pawn shop customer.

 

ALL FACTORING COMPANIES ARE SHARKS!!! In my opinion and my gruesome experience STAY FAR FAR AWAY FROM FINANCIAL CARRIER SERVICES!!! FULL STOP POINT BLANK. Trust me they are bad news.

 

To cut a long story short I had a bad experience with FINANCIAL CARRIER SERVICES ... they are all the same and worse best to do bills yourself or use quick pay if the broker offers it!

 

Seriously dude stay way from factoring it will be much much better to deal straight with the brokers ur self as some brokers offer quick pay and some don't but for those who don't make sure they rating its A and u just have to wait for the pay day good luck

 

Nope...it's all good, Red. I think you were pretty accurate in what you said, but it sounded like you were implying that factors had no right to recover amounts advanced since we do not own the customer relationship. I merely pointed out that while it's true that we don't own the relationship, we are fully entitled to recover all amounts due to us and we will not discharge the customers obligation to pay us until we're fully paid back. I'd actually be willing to bet that you'd do the same.

 

That's a scary story. I understand why some on this board hate dealing with factors. I don't think we're all like that and stand by my earlier comment to shop around and get lots of references.

 

Totally agree! Guys hear the good stuff and get super excited and do not read the fine print. Saves lots of headaches if you be sure you know exactly what you are getting into. I still think its a great service to those who need it.

 

I use Match Factors. No hidden fees, or POA. Been with them for 2-1/2 years and haven't had a charge back yet. (using their broker credit reports). Factoring may not be for everyone, but it works for me. The service I get is well worth the fee I pay.

But take this tip from experience: Avoid Foley Carrier Services (factoring division),

 

I have heard Foley is really bad. I think National Bankers Trust out of Memphis best.