Having been providing factoring services for 2 decades, funding hundreds of clients and interacting with thousands of account debtors it’s easy to see when someone gets out of line. Because the process of factoring invoices is rather mundane, for instance the acknowledgements and notifications – when it isn’t going smoothly the problem stands out like a sore thumb.
The entire factoring transaction is so simple it’s hard to mess it up – but people do once in a while. A good sign that things have taken a left turn is the person who is not following directions starts to blame the factoring company. But because this is so predictable, it becomes very easy to spot.
Whether it is an account debtor (your customer) who is late paying the outstanding invoice or a client who isn’t working with us to make sure the account is paid on time. Whenever something seems abnormal it is important for the factoring company to act quickly and deliberately. The offending party must be put on notice in accordance with the factoring agreement to insure that the situation does not spiral out of control.
Unlike some other forms of commercial financing, invoice factoring requires regular interaction between all parties. The greater majority of the time these activities happen with no conflicts. We appreciate that situations arise when payments are outstanding or being collected, which is why we rely on our client to support the process or risk not continuing as a factoring client.
But silly excuses and chronic delay tactics will only forestall the inevitable.