There are many parts to making a decision of whether to welcome a new company into our portfolio of factoring clients. Are we interested in the particular industry? Is the size of the deal right for us? And will the company be a good fit, easy to work with? But high on the list will always be; who are these people? There’s a good chance we might never meet face to face (although we do visit the majority of our clients because we like them).
So please, don’t take it personally when we start asking some pointed questions about the company, the owners, and anybody that might have control over the finances. When a prospect tells us that they don’t release their financial statements to anyone, it says one thing about them – they’ve never closed on a commercial loan before. Company financial statements are not considered “proprietary information” to someone who is considering giving you their money to use. Either is asking about your personal background. There are two parts to asking for this information. One of course is the information itself, but the other is equally important. We are entering into a relationship where a level of trust has to be established.