Risk Management. Every factoring company in our industry knows the importance of properly evaluating their portfolios. Whether it’s factoring, insurance, mortgages or any other type of lending, mitigating losses is vital for every company’s survival. Just a few years ago we saw firsthand how the mortgage meltdown crippled the entire global economy due to lack of controls and poor risk management. In the factoring community the same holds true. Every factor conducts their due diligence using a specific set of guidelines that allows them to protect their security interest in the receivables of their clients while allowing enough room to generate new sales. In many ways it is a balancing act between sales and underwriting. The sales … [Read more...]
Factoring: Is It Always About the Account Debtor?
By 6 Comments
We all know that factoring has been around for ages and due to the recent changes in the economy its popularity has increased dramatically. With financial institutions constricting credit to businesses, the increased demand for cash flow has created an opportunity for the asset based lending industry especially for … [Read more...]