Factors rely on the accounts receivable for collateral against their funding activities. That is a non-negotiable item for most of us and will NEVER be compromised. So, what does that mean? Very clearly, the receivables must be free of any lien, levy, or claim by any financial institution, court or individual resulting in the factor’s not being able to … [Read more...]
Archives for July 2012
How to Identify a Fraudulent Factoring Deal
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Discover the 3 red flags a factoring broker or company should watch for that can be early warning signs of a fraudulent deal. Some of the specific due diligence procedures factoring firms perform on new factoring candidates are cumbersome and/or costly. Because of this, it’s very rare that a factoring firm would ask a cash flow professional to conduct a thorough analysis as part of an early pre-qualification process. Furthermore, a factoring company won’t even do an in-depth investigation on a prospect until after … [Read more...]
A Call to Factoring Brokers – What’s Up?
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What makes some factoring brokers successful and others fade away? Get three important steps from Don D'Ambrosio in his Call to Factoring Brokers! In the past I’ve written about the pivotal role a factoring broker can play in the cash flow industry. In my November 2011 piece titled, “A How To Guide For Factoring Brokers”, we received an overwhelming response from interested people from all parts of the globe looking to get involved in the factoring industry. That’s the good news. Unfortunately, I have also found that a large percentage of these “new brokers” had … [Read more...]