Looking for a Factoring Company

T

Tera

Guest
I am looking for a good factoring company. My customers NEVER pay in 30 days and it's getting to be a pain in the ass. I want to maintain good credit with my carriers. Any referrals? Thanks in advance.
 

doxilica

New Member
1
Z 7 Z Financial Group

Z & Z Financial Group is a really good factoring company.
 
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Derek's Diva

Member
10
I second the IPS, great bunch of people.
They have a new drop box that at the end of the day we put all our invoices and POD's in them and are picked up nightly and processed the next day. They also do direct deposit int our account and all paperwork scanned in there system, which is easy to retrieve and print.
 

Ken

New Member
1
I don't understand why these companies will not pay their bills on time. When they go to the store they don't say to the cashier that they will pay for their purchase in 90 days. They don't tell hydro that they will pay in 90 days. Why is this? It's because they are not permitted to dictate the terms of payment. Hydro will just kill the power until payment is made in full. What would happen if we said to the customer "We've picked up your load but we don't deliver until 90 days." The fact that the trucking industry allows this sort of practice to carry on proves one thing, that the trucking industry is run by fools. If everyone took a stand and said to customers that this practice will not be tolerated by any trucking company then it would come to a stop. Unfortunately these people can't see the big picture and the ultimate goal and will put up with the customers crap just to keep they're customers. At what point does it get so bad that you finally say to the customer "Your business is not worth the aggravation!"
 

Activet

Moderator
10
At what point

I don't understand why these companies will not pay their bills on time. ................
If everyone took a stand and said to customers that this practice will not be tolerated by any trucking company then it would come to a stop. Unfortunately these people can't see the big picture and the ultimate goal and will put up with the customers crap just to keep they're customers. At what point does it get so bad that you finally say to the customer "Your business is not worth the aggravation!"
HI Ken,
For me, and probably for me alone, the point at which I say "Your business is not worth the aggravation!", is at any time the facts indicate this to me. I never make decisions based on how I feel or what I think. Both are unreliable to use for guidance, as how I feel emotionally is the worst basis for decision making, and what I may happen to think may be wrong - facts and reality never are.
I rely on what I know are the facts and reality to make decisions.

The reason some businesses don't pay on reasonable terms, is that there's usually some vendors who tolerate it. The lowest common denominator comes into play. Those that accept late payments and continue to service the customer, find it profitable and therefore tolerable, or don't have any confidence in their ability to survive without continuing under the same terms. If I have to rely on late paying customers and all that that entails to make a living, then I would be emasculating myself. I have no fear of making a living in any other vocation or endeavor. Those that tolerate a poor accounts receivable position not only put their creditors at risk unnecessarily, usually also lack confidence in their own abilities or potential.
 

LADY JANET

Member
5
I am looking for a good factoring company. My customers NEVER pay in 30 days and it's getting to be a pain in the ass. I want to maintain good credit with my carriers. Any referrals? Thanks in advance.
Z & Z I work with them and They are very good !
Give them a call !
 
factoring

I use Riviera.They advertise on the link.I think you will find as I have, that Factoring companies will only factor the companies with the best credit results on Equifax or the D&B.And you don't really need those clients factored because they pay well.They won't touch the less than best rated companies.
 

KeyFactor

Active Member
10
Factoring services

I have had good experiences with IPS in Mississauga.
I recently started a factoring business in Montreal (Liquid Capital Finnovation: finn.liquidcapitalcorp.com). I'd love to chat with anyone in need of such services. As I am just getting started, I will do my very best to provide the best possible service at competitive rates.
 

alx

Site Supporter
10
Key factor

I see that you have posted elsewhere as well.

I have a few questions for you, that I am sure are bouncing around in the minds of other members as well.

Feel free to answer them or not, if you feel some questions are too invasive.

Why target the trucking industry?

Since you mention that you are starting up, why should we approach you as opposed to others with years of experience?

What differentiates a good factor from another?

Why is factoring still viewed as a measure of last resort?

What will the bank say when they find out that factoring is being carried out?

Any input will probably help others that are as financially challenged as I.
 

KeyFactor

Active Member
10
I see that you have posted elsewhere as well.

I have a few questions for you, that I am sure are bouncing around in the minds of other members as well.

Feel free to answer them or not, if you feel some questions are too invasive.

Why target the trucking industry?

Since you mention that you are starting up, why should we approach you as opposed to others with years of experience?

What differentiates a good factor from another?

Why is factoring still viewed as a measure of last resort?

What will the bank say when they find out that factoring is being carried out?

Any input will probably help others that are as financially challenged as I.
Great questions.
Why target trucking? Because the need is there, but I by no means am only focusing on trucking. Point of clarification: I mostly do recourse factoring, but the flip side is that rates are lower than non-recourse.

Why approach me? I am a franchisee of Liquid Capital, which has been around for many years, so you would get the benefit of all that experience in factoring. You also get my finance experience and training (10+ yrs in corporate finance, CFA designation, MBA from McGill University). I most recently worked for a large company with $6B+ in sales that filed for bankruptcy protection, restructured, emerged from protection and then was bought by another company. I learned a great deal from that process that is transferable to factoring.

Difference between a good factor and a bad one from my perspective comes down to fit, quality of advice, accessibility, etc. Tough question to answer concisely, but to use an analogy, we've all been to doctors that never look at you, don't answer your questions and keep you waiting. We've also seen the other guy who spends time to figure out which approach is best for you and then explains why it is best. This is all very easy for me to say, but the only way you'll know it's true is by doing business with me. One thing is for sure...I'm new, so I'm eager to build my client base and prove my value.

For sure factoring has a negative perception, because people tend to look at the rates alone and say it's too expensive...only desperate companies would pay such high rates. This is short-sighted and ignores the services we provide such as receivables mgmt, collection calls, credit analysis. Probably amounts to far less than the equivalent salaries needed to do the work in-house. We have many examples of companies that effectively use factoring to grow and have had tremendous success as a result. If you outgrow the need for my services, I will be happy to have helped get you to the point where you can get cheaper funding. But before you go, please consider that my value is not only in the funds I provide, but in the other points described above.

Banks should not be at all concerned about the presence of a factor, but truthfully, the two rarely co-exist because the banks like to have a claim on all your assets and the factor needs to have first position claim on your receivables. Other than that, there is no issue between banks and factors.

It also helps that I am located near you, so you can have funding within a day.

Hope that helps.
 
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factoring

Accutrac

We have dealt with them and they are great. The staff are super helpful and work with you. Any issues with invoices they call and let you know right away so that it can be cleaned up in time to make it into that days batch. If you have a crunch they can wire in for same day.
 

KeyFactor

Active Member
10
Financing options

All,
Maybe some of you can help me confirm my understanding of a few things. Reading the different threads on this board, I gather the following:

  • some don't like factoring because they find it way too expensive
  • some have had good experience with certain factors
  • some prefer non-recourse factoring to recourse factoring
  • some prefer Quick Pay
My questions/comments are as follows:
  • I've said before that factoring is not expensive when you consider the added service of managing your receivables
  • like anything, there are good factors and bad factors and I'd like to think most of us are honest and try hard to properly service our clients. Your favourable comments about Z&Z, Accutrac, Riviera, etc. reinforce my optimism.
  • I offer both recourse and non-recourse factoring, so it doesn't matter to me...I can get you whatever you want. Since the non-recourse guys seem to charge about 7% per month and will refuse to buy poor credit anyways, why not go for recourse factoring, sell me the same low credit risk invoices and pay half the cost? If industry margins are under so much pressure, I would think you'd want to reduce unnecessary costs.
  • If you're a carrier that does business with many brokers, it is quite possible that not all of them offer Quick Pay. It seems expensive compared to recourse factoring, but it definitely has certain advantages so I see why people like it.
I'd love to hear your thoughts on these points.
 
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