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Nothing at all.. just want to sock him in the jaw.. is that ok?
Scout Logistics and Grand Financial and Factbanc partners
- Thread starter Blondie
- Start date
Nothing at all.. just want to sock him in the jaw.. is that ok?
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It is always nice to have a reason if you are going to sock Alex in the jaw.
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I was inboxed by another member last night. Grand Financial is definitely involved in a lot of litigation, and client interference. They lose many cases i was told. I was told that a few ex clients are going to start a class action type claim against Grand , its owners, Alex and some other collectors. Google them, there are many cases and they lose often.
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Brother, I like your style ... ROFLMAONo.. but I know the type. Beating on one is as good as beating on any of them. ..
It's usually difficult to factor AND have a line of credit because both lenders will want to take receivables as security for their advances/loan. Bank financing is always cheaper, but will not provide adequate funding for growing companies because bank financing is based on historical results. Factors look primarily at your creditworthy receivables, so you could access additional funding much sooner, if you are growing, which allows you to accept more orders and make more money even after considering the additional financing costs. Your focus seems to be more on the cost of financing, but you should consider that the factoring itself only takes a few percentage points off margins on sales that you would never have made in the first place. Sit down with a factor and run the numbers...it might be worthwhile for you.
I think you have to do some due diligence on the factoring company. Some are more professional/ethical than others.
The best possible reason is that it's unethical to divulge anything of a confidential nature that is not relevant to the transaction in question.
A factoring company may not approve you for a certain credit limit if there is insufficient information available on you that justifies the limit. It doesn't mean you're not good for it, only that they have no objective way to prove it. The simple answer is for the factoring company to send you a commercial credit application in which you provide them trade and bank references. If, for example, you have an existing credit relationshipfor a similar amount and was always kept in good standing, the factor might say, yeah, he's good for it.
I agree that if the factoring itself doesn't permit you to grow more quickly, the cost is difficult to justify. If, on the other hand, it DOES allow you to accept way more loads than you otherwise could on your own or with a bank, one could make a strong argument for factoring.
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It happens rarely but when it does it's always because I'm from Canada; the usually little factoring company in question is afraid of all things foreign. The big factoring companies like D&S, Apex, Triumph, etc. will all work with me. My bigger concern is accurate reporting of information.. If I pay my bills in 5 to 15 days it shouldn't be reported as 30. And that 5 to 15 is the time from invoice date to the time monies are withdrawn from my account.
I own a factoring company, so I can't really answer your question. There is a section elsewhere in this forum and lots of carriers have reported their experiences - good and bad. I really think factoring is just a tool that like any other can benefit your company in the right circumstances, if used properly. If your business has low gross margins (for me that's anything below 15%) and no growth prospects, it may be hard to justify the cost. If, on the other hand, you are turning away orders due to your cash constraints, it might be worth considering. One of our carrier clients started with us 5 years ago factoring $30K per month...now they do $750K per month. No bank could have supported that growth.
Accurate reporting can indeed be a challenge. From the factor's perspective, they should be sending invoices out with no delay (electronically is preferable) and they should post customer payments to the associated invoice with minimal delay. Sometimes there are additional delays due to the mail (yeah, yeah, we've all heard that one) and from the use of certain banking instruments, like lockboxes. All this may contribute to their reporting of payment delay being different from yours. Not saying it's right or wrong, just making a comment.
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I see a lot of negative comments about Grand financial and a handful of others. Why is Grand and these others causing issues for their customers?
Maybe they think they're doing their customers a service by being aggressive (not my words)? This approach seems short-sighted to me...I always feel I never have the full story unless I have strong evidence to the contrary.