Factoring Stops Bad Debts
We stop you from selling to customer s who don’t live up to their responsibilities. We restrain you from selling huge Dollar amounts to customers that do not have the resources to pay those amounts. We diligently follow up on payment status just a few days after the payment is due. No grass grows under our feet! We continually monitor and review the credit status of each of your customers. Last month’s star could be this month’s falling star! We have the personnel and the procedures in place to make this easy and routine. And lastly, we have access to inexpensive Credit Insurance if the risk is simply more than you or we together want to bear. So will we stop all bad debts? Not always possible, but they will be lower than if you attend to this function without the diligence and efficiency that we bring to bear.
Of course, many customers, knowing that your company factors its receivables, will tend to pay your invoices sooner than those of other vendors, as they realize that we report payments and transactions with customers to the various credit agencies. Anyone wanting to maintain a good credit rating will tend to pay those invoices first.