Have any non recourse factoring companys to suggest? Not sure what JD Powers does.
I know with our current vendor, it's 10% off the get go, and if uncollected in the 90 days alloted, it becomes our invoice once again - less that 10% cut! And these are with pre-approved payers. So, a 5% without recourse would be pretty nice.
We deal with Riviera Finance in Mississauga.
https://www.rivierafinance.com/
A good person to speak to regarding their services and how it all works, is Wayne Holder (866-899-0070).
We've been using them for a few months now, and there have been no surprises, everything has been as stated, which is rare these days it seems.
The people there are excellent and helpful. They charge 5% if you give them a minimum of $10K in invoices in a given month, otherwise it's 10%, but it is non recourse.. of course, as long as the co is approved by Riviera. So no matter if the payer goes bankrupt or is just slow paying, you can relax about those loads you just did.
We don't pay the extra hundred bucks to Link for the credit info, and instead, we can see from the client screen at Riviera, who they'll take, or what someone's credit is like. Can also call them quickly to get the scoop. Their info is current, and also based on their own experiences with payers, as well as the usual methods.
I find it pretty interesting to watch the Link sometimes.. I'll see loads come up from really
bad payers, and yet the load will be gone within seconds or minutes. I'm left wondering who is taking these cheap paying loads from these bad paying brokers.
You are still free to do biz with whoever you want, but if unapproved, you'll just have to wait for payment and not factor them, make your own arrangements based on your comfort level.
We are a fairly new, small carrier, and for us, it is just a cost of doing business right now, and we look at it like insurance. We'd rather pay them than get stiffed due to a bankruptcy or whatever, or wait 4 months for a slow payer. If we already know someone pays really quick, we can just choose not to factor them if we wish.
They have a dropbox at the back of their building on Timberlea, and when we get our paperwork dropped off at any time before they open on a given morning, the money is in our bank account by 4pm same day. They have different ways of getting paid, can be mailed, couriered, or deposited direct, depending on where you bank, how fast you want your money, etc.
I really can't say enough about Mr. Holder, and Riviera as a whole. As a newer carrier, he has been immensely helpful to us in areas I wouldn't have expected. (And no, I'm not getting a commission here!!!!!)
I can imagine one could get into really deep trouble if using a 'recourse' factorer. I would imagine they would be more likely to approve a bad payer, knowing they can just get their money from you in the end regardless, and still get their fees.
I hadn't heard of 'EDC', but thanks for that info too.
