Factoring or lending company
- Thread starter accounter
- Start date
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D & S Factors and Apex Capital seem to be most popular among my carrier base.
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Accounted. I don't think it matters where the factoring companies are located. Most of the paperwork is done by email these days.
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I deal with a few of the larger lenders in Toronto. Recently i have heard 2 complaints about J D Factors. The rates are sometimes higher than the big guys. Riviera In Mississauga could also be an option for you. You can see Key Factor is also a member and he might be located in Montreal if that is your preference. IPS is good also. I hope this helps you.
@accounter, I understand your preference to deal with someone locally and would also mention a few things to keep in mind when you shop around:
rates: larger factors offer lower rates but many will have minimum volumes that a company of your size may not yet meet, so don't be fooled by a rate you saw on the Internet. Flat-rate and "non-recourse" pricing may not apply to all of your customers, if they pay in 60 days or more.
monthly volumes: even smaller factors might have minimum monthly volumes, so watch out for those
hidden fees: termination fees, wire fees, same-day funding fees...the list goes on. They post an attractive rate, but then get you with the add-ons.
A final word on factoring: factoring can be good to support strong growth, so if that's your intention, you should definitely consider it. Some companies only factor to improve liquidity (access to immediate cash), but I don't believe the costs are easily justifiable on that basis.
Happy shopping!
rates: larger factors offer lower rates but many will have minimum volumes that a company of your size may not yet meet, so don't be fooled by a rate you saw on the Internet. Flat-rate and "non-recourse" pricing may not apply to all of your customers, if they pay in 60 days or more.
monthly volumes: even smaller factors might have minimum monthly volumes, so watch out for those
hidden fees: termination fees, wire fees, same-day funding fees...the list goes on. They post an attractive rate, but then get you with the add-ons.
A final word on factoring: factoring can be good to support strong growth, so if that's your intention, you should definitely consider it. Some companies only factor to improve liquidity (access to immediate cash), but I don't believe the costs are easily justifiable on that basis.
Happy shopping!
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When meeting with potential factoring companies for your business, I might suggest asking them a few questions including:
- Will you be hounding my customers/brokers for payment status, or will you use only as much contact as necessary and be respectful of the companies I do business with?
- Will you be late in sending out my invoices after adding your factoring stamp, and then report that my customers/brokers are slow payers to Equifax/Transunion? Or are you able to efficiently deal with the paperwork and ensure that all credit reporting is done accurately?
Factoring has it's place for those who need it... But when putting something like this in place, be mindful of how they may treat your customers/brokers and that some prefer to deal only with carriers who do not factor.
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No, they're American companies, but they have clients up here too. I know this becuase some of my carrier partners use them. I refer them only becuase they seem to be popular among my carrier base. I'm sure there are local factoring companies in Montreal too..
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I think Key Factor is in Montreal. If that is where you are located. he is a member here.
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Super. This website very assisting. I will make some contact next week. Thank you all very much!
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Some timing on this thread... I just got an emailed invoice today from Grand Financial Management ( factoring company ) ...
All that was included was the factor-stamped carrier invoice and a copy of their 'notice of assignment'...
That's all they (the factoring company) cares about... their contract and their invoice...
Who cares if the invoice has NO POD... NO confirmation... NO load paperwork...
NO Thanks!
All that was included was the factor-stamped carrier invoice and a copy of their 'notice of assignment'...
That's all they (the factoring company) cares about... their contract and their invoice...
Who cares if the invoice has NO POD... NO confirmation... NO load paperwork...
NO Thanks!
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Likely just some employee who overlooked sending you the POD.. I've had factoring co. send me the wrong POD.. I used it as a "sales lead".. got one of my accounts that way.
I would never pay without a POD since my customer doesn't pay me without one....
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My clients typically invoice their customers via email with me in "cc". They include their invoice (bearing my stamp), a clear copy of the POD and a copy of the carrier confirmation. If any of the three parties is not satisfied with any of the documentation, we know right away. For example, if the copy of the POD is not clear enough, the customer (broker) says so right away and carrier sends a clearer copy within a matter of minutes. This approach also avoids the issue of invoices not sent out in a timely manner. I think it all works quite well.