How to Be Sure Your Business is Paid!

I just received a large order from a local company – should I take it?

This is what I call the ‘ship and hope” syndrome. In other words, fulfill an order; ship the product and ‘HOPE” to get paid.

In today’s economy, not knowing the credit (payment history) of your clients is a recipe for disaster.  Unfortunately, I would estimate that over 90% of the businesses  we work with failed to have the proper credit review procedures in place before funding invoices with us.  

As a factor, we are constantly monitoring the credit strength of what we call the debtor (the entity making payments on the invoices). Due to the large volume of invoice payments received, we use a number of credit reporting agencies as well as credit insurance companies to help us in making funding decisions.

By virtue of being a Millennium client, our clients have access to highly sophisticated credit reports, information that would be unattainable on their own.   Whenever a client is in receipt of an order from a ‘new” customer, they simply fax over a copy of the purchase order (or like) to their account executive and within a short period of time, a complete credit history will be provided along with an approved funding limit (or declination) from Millennium.

‘It is better to have never shipped at all than to have shipped and never been paid!”

Please be sure to inform your prospects that factoring is not only a solution to their working capital and cash flow needs, but also a way to make solid credit decisions in the future.

Timothy J. Sardinia  – Mr. Sardinia is currently a Partner with Canfield Capital Management, LLC, a Member of Steelkilt, LLC, a Member of Millennium Automotive Group, a Member of Millennium Legal Funding.  Tim can be reached at  tim@millenniumfunding.com or by calling  716-204-4800.