Collecting fees - Factoring

[Russell Sands]

Anyone out there using these companies? How is it working? is it as easy as it sounds? work well with the non-paying AMCs?

Any recommendations from people using these services?

Any difference than a collection agency?

Thanks for the info

 

[Tim The Enchanter]

It's not the same as a collection agency. You are selling the right to collect on your invoices to them for a discount. Paying them to get your money faster essentially. If there's a bad debt that doesn't get paid, they might have recourse to charge the loss back to you.

It makes no sense to a small appraisal operation, imho. Maybe not to a large one either. Probably more suited to a company that manufactures stuff and sells it on 90 day or more terms. Get the cash now minus the factors fee, and buy more materials. :new_llying:

 

[J Grant]

If you have a client that is such a bad payer you need factoring, drop the client. Either drop them, or wait for the money, if you feel they are reliable. Factoring companies pays you in advance, but they take a good percent of the fee in return, not sure what it is, could range from 10-30%. So now you are getting less of a fee in order to be paid on time? Like I said, if you have to resort to factoring to get cash flow, drop the client that is putting you in that position. There are plenty of clients, including AMC's, that pay on time .

 

[tvfactors]

Our company charges 5% on any invoice you submit, non-recourse (we take on 100% of loss), and you can pick and choose which invoices to submit.

 

[VolcanoLvr]

I've seen Treasure Valley Factors at various appraiser conferences. Straight up folks. Worthy of consideration.

 

[tvfactors]

Thank you VolcanoLvr for the kind words! Which conference did we see each other?

 

[Mile High Trout]

If you have a scenario which requires additional business cost:

Pass the costs on to the consumer.

 

[Mountain Man]

Not that I'm trying to give anyone ideas of how to unload a stack of invoices they know are about to be worthless, but... if it's non-recourse, how do you handle the appraisal management companies who typically pay 90 days or more out, then up and close their doors are on the verge of closing? JVI who WAS a good AMC at one time, I'd not extend them 1 days worth of credit now.

 

[tvfactors]

Once we purchase the invoice all risk transfers to us. We of course try to collect on the invoice from the company that closed but we will never ask for the funds back from our clients.

 

[victorbreuer]

JVI in Trouble

Anyone out there using these companies? How is it working? is it as easy as it sounds? work well with the non-paying AMCs?

Any recommendations from people using these services?

Any difference than a collection agency?

Thanks for the info

Dear Victor,

We want to keep you fully informed of our progress regarding the anticipated payment of all past due invoices.

JVI is being acquired by a Fortune 500 company. Final approval has just been granted and we are now in the final stages of the transaction. The new company is fully aware of the outstanding debt and the urgency attached to paying all of our field partners immediately.

We plan on making a formal announcement within the next two weeks. We cannot discuss the details of the acquisition at this time, but can assure you that our Field Partners will be paid for all services performed for JVI.

The benefits of this acquisition to you are:

· All outstanding invoices made current.

· All future assignments for the new company will be paid within 30 days.

· The strength of this Fortune 500 Company will attract new clients, meaning more work and more security in these turbulent times.


I am very sorry for this delay and hope you can continue to work with us. If I can be of further assistance on this matter please feel free to contact me.
***Email is currently the best method to reach me as I am inundated with calls, please hit “Reply to All’’ to be assured that I will receive your response.

Respectfully,
Hank Pruett
JVI Appraiser Services
hpruett@jvisolutions.com
701 International Parkway
Suite 200
Lake Mary, FL 32746