Yes... They are on my DNU list because they use a factoring company...
Other than them using a factory company you never had any issues with them. I have no issues paying factoring companies.
Why not deal with them as they use a factoring company?
Let's see... where should I start...
Just my opinion and my experiences here but...
- Companies that factor are often in financial trouble and this is their last step before bankruptcy... This is not always the case, but in my experience it is often the case...
- Factoring companies hound for payment status more than carriers who don't factor... even when the brokering party pays according to a schedule...
- Factoring companies report on your credit... and do so inaccurately... In my experience, they get the invoice from the carrier, put their stamp on it, and then mail it to the broker... The broker gets the invoice about 2 or 3 weeks after delivery, by which time the factoring company has already reported that you are late paying them... Sometimes it's worse, I had a really bad experience with Riveria Finance in a matter like this... They lied about reporting to equifax and had to eat crow when I proved it was them, and when I proved their report to be grossly inaccurate...
Generally speaking, they just 'thicken up' the whole process of invoicing and paying...
They are a hassle that I choose not to deal with...
Rant over!.... thank you for listening... haahahaaa...
Well those are decent reasons. Not all the factoring companies are like that. As for Riviera Factors, i have not had that type of experience with them. Most of the factoring companies we deal with are ok, at least with us!
A lot of these carriers di need the cash right away due to financial constraints.
JC, the problem of "stale dating" invoices is not confined to just factoring companies. There are still some carriers who will date their invoices with the pick up date, after waiting for the driver to hand in his paperwork, and then throw the invoice into Canada Post. Needless to say, by the time the envelope gets ripped open, the invoice is at least 10-14 days old, or worse. On the bright side however, with most people e-mailing invoices, this problem is becoming less common. Like most people, I can't pay an invoice until I have that invoice, and the clock starts ticking once I have it in my hands.
Thank you for your help.Yes sir... no issues that I'm aware of...
... If a company is selling it's receivables I'm guessing they have already exhausted other more conventional methods of funding a business like bank loans, lines of credit, etc... Why else would someone borrow at such high rates? If they need money this bad, is their equipment well maintained? ...
JC, the rates are clearly higher than those of traditional financing, but should be in line with QuickPay. The key concept you're missing here is GROWTH enabled by factoring. If the costs are reasonable within the context of the enabled growth, why wouldn't it be a good strategy?
As for collection calls, if invoice terms are net 30 days and carrier confirmation doesn't indicate otherwise, we do not think it's reasonable to pay in, say 60 days (not saying you take this long to pay - just using an example). Would you find this reasonable?
There is no excuse for reporting false info to Equifax. I know this belongs on another thread, but I strongly disagree with your comments and can't leave them alone.