Delve into the opinionated and open view of a Mid-20's credit lender. Working with a group of entrepreneurs to help make freeing up capital easier than any traditional bank loan. His objective is simple: observe, report, and find the humor in everyday working life. Whether the topic is talking about customers, prospects, or the headline on an online news site. This blog is bound to captivate and educate.
Showing posts with label factoring agency. Show all posts
Showing posts with label factoring agency. Show all posts
Friday, November 16, 2012
Monday, November 5, 2012
The Factoring "Lock Box"
As the eyes and ears for a Factoring/Financing company, it is interesting to be involved and surrounded by new terminology, as it is in any industry.
My quandary today was, when involved in a conference call, describing a factoring "lock box" through the financing bank.
Here was the dilemma:
This certain company is working on a contract with us involving buying their accounts receivable. The clients were worried that their customers would know they would be going through a secondary finance company, that is fronting them money.
Here is where I would like to interject. Factoring happens to be one of the oldest and most basic forms of getting financing outside of a bank. It has been used for centuries, if it were not for factoring, there would not be clothing on your back, because that is how the garment industries were started. It is a widely known, and widely used option to small and large business owners. Try to find an industry that is retail or sells a good that does not use some sort of commercial financing or factoring. So in summation to my soap box rant, there should not be any worries about someone knowing that you have a factor buying your receivables.
Back to the story...
As we were in the midst of this conference call, my superior was trying to explain this fraud deterring system called a "lock box." If you are in the industry, you would know that one of the 4 most common forms of fraud that is committed is when a client does not submit, or notify the factoring company of an invoice that the creditor had already purchased.
My superior did an excellent job to avoiding the "F" word, (keep your mind out of the gutter, I mean fraud,) and told them how that it is merely a process to show verification to us and the bank that your checks are coming through and that the money you had promised is not being lost in translation.
To put it shortly, a "lock box," is a system that all checks are placed into, a photo is taken, and so that all parties involved can see what and where money is being handled, and sent to, as a safety precaution for the money that is being loaned.
I would advise doing a google search and finding websites such as:
http://www.investopedia.com/
or
http://money.cnn.com/services/glossary/a.html
to learn some new vocabulary, and find a new word of the day.
Factor ya later!
http://www.lenderscf.com
Asset-Based Loans to Grow By
My quandary today was, when involved in a conference call, describing a factoring "lock box" through the financing bank.
Here was the dilemma:
This certain company is working on a contract with us involving buying their accounts receivable. The clients were worried that their customers would know they would be going through a secondary finance company, that is fronting them money.
Here is where I would like to interject. Factoring happens to be one of the oldest and most basic forms of getting financing outside of a bank. It has been used for centuries, if it were not for factoring, there would not be clothing on your back, because that is how the garment industries were started. It is a widely known, and widely used option to small and large business owners. Try to find an industry that is retail or sells a good that does not use some sort of commercial financing or factoring. So in summation to my soap box rant, there should not be any worries about someone knowing that you have a factor buying your receivables.
Back to the story...
As we were in the midst of this conference call, my superior was trying to explain this fraud deterring system called a "lock box." If you are in the industry, you would know that one of the 4 most common forms of fraud that is committed is when a client does not submit, or notify the factoring company of an invoice that the creditor had already purchased.
My superior did an excellent job to avoiding the "F" word, (keep your mind out of the gutter, I mean fraud,) and told them how that it is merely a process to show verification to us and the bank that your checks are coming through and that the money you had promised is not being lost in translation.
To put it shortly, a "lock box," is a system that all checks are placed into, a photo is taken, and so that all parties involved can see what and where money is being handled, and sent to, as a safety precaution for the money that is being loaned.
I would advise doing a google search and finding websites such as:
http://www.investopedia.com/
or
http://money.cnn.com/services/glossary/a.html
to learn some new vocabulary, and find a new word of the day.
Factor ya later!
http://www.lenderscf.com
Asset-Based Loans to Grow By
Talking about, thinking about, and understanding the life of a hybrid Finance/Factoring Company
This blog will let people understand and begin to comprehend the other side of financing and factoring, where you are dealing with real people, and not just a bank.
A little about our company, and the men that started it:
Steve Tarpley and Ken Wilkens have started three successful small businesses over the last 21 years. They founded NEWCAL Industries in 1991, and grew it into one of the top ten office equipment dealers in the nation. In 2008 NEWCAL was acquired by one of the world's largest office equipment manufacturers.
Steve and Ken understand small business - they are intimately familiar with both the joys and challenges of building and managing a successful business. There were many stages along their path to success that required creative ways to fund growth.
Discounting their commercial invoices was one of the tools they utilized while building their businesses. It helped them hit some of their major milestones. They formed Lenders Commercial Finance to help other small and emerging California businesses fund expansions & growth, bringing Cal McGinnis on board to run their day to day operations. Cal has over 30 years of experience working with small businesses; both as a commercial banker and as a trade credit specialist.
You too can take advantage of this important tool to unlock the cash flow tied up in your accounts receivable. Invoice discounting with LCF works much like an accounts receivable “payment-in-kind” bank line of credit. Collections pay down your line and new invoices allow you to draw upon your line. Our goals are to help you obtain the working capital you need, when you need it.
http://www.lenderscf.com
A little about our company, and the men that started it:
Steve Tarpley and Ken Wilkens have started three successful small businesses over the last 21 years. They founded NEWCAL Industries in 1991, and grew it into one of the top ten office equipment dealers in the nation. In 2008 NEWCAL was acquired by one of the world's largest office equipment manufacturers.
Steve and Ken understand small business - they are intimately familiar with both the joys and challenges of building and managing a successful business. There were many stages along their path to success that required creative ways to fund growth.
Discounting their commercial invoices was one of the tools they utilized while building their businesses. It helped them hit some of their major milestones. They formed Lenders Commercial Finance to help other small and emerging California businesses fund expansions & growth, bringing Cal McGinnis on board to run their day to day operations. Cal has over 30 years of experience working with small businesses; both as a commercial banker and as a trade credit specialist.
You too can take advantage of this important tool to unlock the cash flow tied up in your accounts receivable. Invoice discounting with LCF works much like an accounts receivable “payment-in-kind” bank line of credit. Collections pay down your line and new invoices allow you to draw upon your line. Our goals are to help you obtain the working capital you need, when you need it.
http://www.lenderscf.com
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