Grand Financial

loaders

loaders

Site Supporter
30
Exactly Henry. I am just asking Key Factor for his confirmation. We recently had a situation (that became real ugly) where a carrier we used had a contract with a factor and we had received the required Notice of Assignment. After a few months went by, we received a second invoice directly from this carrier asking us to pay them directly as he had not factored this particular invoice. The carrier claimed his contract with the factor was over and furnished a letter confirming the cancellation. He was unable however to provide us with a Release from the factor. As a result we refused payment and will make the payment to the factor within their terms.
 
K

KeyFactor

Active Member
10
loaders said:
Would it be safe to say key factor, that a release letter would not be issued if your client still owed you money?
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Yes, that would be a safe assumption. Clients should understand that I do not choose their customers and if invoices are not paid out in the normal course of business, my client must make me whole. In my example, part of the new bank line will be used to purchase the remaining invoices, some of which might not have otherwise been easily recoverable. He will still be left with most of his line available for future use.
 
K

KeyFactor

Active Member
10
loaders said:
Exactly Henry. I am just asking Key Factor for his confirmation. We recently had a situation (that became real ugly) where a carrier we used had a contract with a factor and we had received the required Notice of Assignment. After a few months went by, we received a second invoice directly from this carrier asking us to pay them directly as he had not factored this particular invoice. The carrier claimed his contract with the factor was over and furnished a letter confirming the cancellation. He was unable however to provide us with a Release from the factor. As a result we refused payment and will make the payment to the factor within their terms.
Click to expand...
@loaders, I remember that discussion on this board. You handled it well.
 
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