[Sachip24]

have few high end clients that are afraid their clients will leave them if they go the A/R route for financing

[TedFundy]

I literally just typed this in another thread. PLEASE (EVERYBODY) LISTEN VERY CAREFULLY:

Tell your merchant to take a look at their subcontract agreement (if he has one). If there is an anti-assignment clause that explicitly states the client cannot to remit payment to another party, then he actually can't factor. However, I would be willing to bet my life there isn't said clause. He is legally able to use a factor and it is fully within his rights as a contractor. If he changes bank accounts or moves locations, can he not notify the customer to remit payment elsewhere? The check will still come in his name. It just goes to a lockbox. There is a difference between not wanting a customer to know you have a factor and taking on MCA debt or doing nothing. That difference is saving tens of thousand dollars OR possibly the financial downfall or end of his business. Anyways, having a factor isn't a crutch AT ALL. It's quite the opposite. Any client we fund, we ask them to make a press release stating that due to your growing success- you just received a line of credit for however many 100 thousand dollars we approve them for. We can speed up his payments from 2-3%.


Their clients will not leave them. If they don't factor, they will have to leave their clients.

[omegafund]

have few high end clients that are afraid their clients will leave them if they go the A/R route for financing

I agree with TedFundy. you need to educate your client

[TedFundy]

Just to add, if they really do not want to notify their customers we can do it. But we will ask for a PG secured by his house.

[Sachip24]

I literally just typed this in another thread. PLEASE (EVERYBODY) LISTEN VERY CAREFULLY:

Tell your merchant to take a look at their subcontract agreement (if he has one). If there is an anti-assignment clause that explicitly states the client cannot to remit payment to another party, then he actually can't factor. However, I would be willing to bet my life there isn't said clause. He is legally able to use a factor and it is fully within his rights as a contractor. If he changes bank accounts or moves locations, can he not notify the customer to remit payment elsewhere? The check will still come in his name. It just goes to a lockbox. There is a difference between not wanting a customer to know you have a factor and taking on MCA debt or doing nothing. That difference is saving tens of thousand dollars OR possibly the financial downfall or end of his business. Anyways, having a factor isn't a crutch AT ALL. It's quite the opposite. Any client we fund, we ask them to make a press release stating that due to your growing success- you just received a line of credit for however many 100 thousand dollars we approve them for. We can speed up his payments from 2-3%.


Their clients will not leave them. If they don't factor, they will have to leave their clients.

Thanks for the advice will do

[brokerCompany]

I actually got a couple of non notification LOC done with dealstruck when they were lending. 100 and 300k deals. Not sure if there is another lender like them around now

[Chambo]

I literally just typed this in another thread. PLEASE (EVERYBODY) LISTEN VERY CAREFULLY:

Tell your merchant to take a look at their subcontract agreement (if he has one). If there is an anti-assignment clause that explicitly states the client cannot to remit payment to another party, then he actually can't factor. However, I would be willing to bet my life there isn't said clause. He is legally able to use a factor and it is fully within his rights as a contractor. If he changes bank accounts or moves locations, can he not notify the customer to remit payment elsewhere? The check will still come in his name. It just goes to a lockbox. There is a difference between not wanting a customer to know you have a factor and taking on MCA debt or doing nothing. That difference is saving tens of thousand dollars OR possibly the financial downfall or end of his business. Anyways, having a factor isn't a crutch AT ALL. It's quite the opposite. Any client we fund, we ask them to make a press release stating that due to your growing success- you just received a line of credit for however many 100 thousand dollars we approve them for. We can speed up his payments from 2-3%.


Their clients will not leave them. If they don't factor, they will have to leave their clients.

the issue here is, this actually takes a lil knowledge and some work on behalf of the rep. Many reps out there either cannot, or aren't willing, to put in said work (heck, sometimes getting back basic stips is a major chore!). Maybe NY State will change all that with their proposed legislation in 2017, but only time will tell

[Sachip24]

the issue here is, this actually takes a lil knowledge and some work on behalf of the rep. Many reps out there either cannot, or aren't willing, to put in said work (heck, sometimes getting back basic stips is a major chore!). Maybe NY State will change all that with their proposed legislation in 2017, but only time will tell

I have no problem doing the hard work but I am fairly new to factoring being we do mostly mca here where I work. I am still learning the factoring ropes sort of speak. So far I have only found fundbox can do it with no debtor notification.

[bdshaw]

Sachips24.....I know a few factors that will do non-notification deals for clients in a strong finacial position.
Give me a call and I'll point you to them. We will not do non-notification factoring at Iron Horse. We just ran into exactly the same situation with a supplier to Toys R Us. I called in TRU and was able to tell the client who came how to get hold of the person in the A/P department who handles factored accounts .
Bob Shaw
Iron Horse Credit
rshaw@ironhorsecredit.com
734-929-3800

[RichardGerard]

There are several non notification Receivable LOC Lenders out there..

[VFG]

We have a non-notification factoring program where we can setup a sub-account with the client's name, controlled by us (the factor). This way the debtors can make payment to their same supplier without knowing there is a factoring relationship in place.

This works ONLY when we have drained our full notification resources to each account debtor, realized they do not accept notification or pay third parties, and made sense that the account is worth our time to setup this type of operation.

Their fear of their debtors feeling the company as weak when factoring is a myth. If the client sells to large creditworthy account debtors they either understand factoring and welcome it or they do not and will not accept notification from a factor, but the client's desire to factor should not alter their relationship with its account debtors.

Happy to discuss in more detail to see if we can be of help.

Feel free to DM me. Good luck!

[brokerCompany]

Who above can factor Canadian construction companies?