A New Way to Invoice- FACTORING - Get paid immediatley and signing companies pay The Factor

I think for me, since I signed a contract with an understanding of when I’ll be paid, I’m not understanding the theory of paying a fee to get paid earlier. I keep busy enough to ensure that I’m paid every week, although I certainly understand this may not apply to others.

I wish you well and hope this company works out for you and others who may be interested in using them.

You’re right. You want respect. You understand business. The company has the money and they need to disperse it to you. If others are having payment issues, send them to their personal collection agency in 90 days. Done. Move on.

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When you already factor your Notary fees by 50% & accept low ball fees, the invocie is factored.

Why would one accept to factor their already discounted fees, Unless you are a worker who thinks that any pay better than minimum wage of wal-mart or a fast food worker is great. Just adds more middle men into what is supposed to be simple open/shut transaction.

  1. Why is not one thinking of approaching your state lawmakers to sponsor law to ensure notary is directly & immediately paid by the person who signs ?

                             NOTARIES UNITED FOR FAST PAY & FAIR PAY 
    

I am in process of attempting to change the state level notary law to ensure that the NOTARY who does the signing is paid for the signings immediately, whether the deal is cancelled in 3 days or not. Document print fee, travel fee, convenience fee, notary fee, etc all that of which comprises the closing / signing fees, Also raise the minimum notary fees in my state of NJ which is abysmally low at $2.5 per signature.

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I just started doing signings and while reading through the Forum it appears that we don’t get paid very fast. It seems to me that we should address this at the National Level or to your State Level that the fees are paid by the Title companies when it closes. Why should we have to wait to get paid by the Signing Co’s that may or may not be using our money to keep their doors open.
Everyone else gets paid at closing the Lender, Inspection, liens/judgements, etc. so why not the Notaries it should not be that difficult to add this to the HUD settlement statement.
Thanks for reading I just wanted to share my opinion and to help each other as a group.

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There was a chance for notaries to make this influence. Consume Finance Protection Bureau is the place you complaint and make this noise.

They were proposing changes to CD and there was a period of public comments open and I put in exactly what you say.
Notary fees PAID TO NOTARY MUST BE separately identified. Notary Search fee such as signing service fee must be separately identified.

But the new incoming governments agenda is to deregulate as much as possible and including shutting down CFPB.
They want to do away with CFPB and kill Frank-Dodd act which makes these kind of protection possible.

Sigh !!! Some win, Many lose.

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I am a 30 year retired commercial banker who has managed a factoring division. Do not use a factor unless u have serious cash flow problem. Its just too expensive with discounts unless u have a cash flow problem. Best advice–if you can wait for the money then do not factor.

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I think the best way is for all experienced and proven notaries to unite and all insist on pay up front on The Square or Pay Pal -as we are NOT in the business of granting credit. Do you buy a pair of shoes on Amazon then tell them that you will pay them in 2 months ?? Same with us. Payable upon booking, NOW or nothing.

I have worked independently for 12 years with learning the ropes and how to avoid the dead beat companies.
I work for several known companies that pay weekly, bi weekly or once a month. I prefer the weekly who do direct deposit and I do not except new companies at month-end nor do I go on signings for no one with out checking them out first.

Some I have taken on and then checked them out to find that they were dead beats and I kindly call or email them and tell them they have to find another notary because I found unfavorable information regarding their company. It is just that simple, I will not pay another service for retrieving my funds. Always check here on the forums, Notary Rotary and BBB to see what other Notaries are saying before taking on new customers.

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I do the same, I will not do a second signing unless I have been paid for the first. I will tell them that when they call.

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Forget FACTOR unless you want to throw your money away. No one can pin down the exact date you will be paid. There are many factors to a loan and notary signing is just one of them. A lender still has to close the loan and escrow has to disburse the funds. Anything can delay a loan and a notary/signing company has NO control over the situation. With the new three day waiting period for funding and more QC regulations, I find lenders may take longer to close than originally planned. What I’m trying to say is that you may not have the “larger picture” of the situation. Then ask yourself, if you cause grief for the signing companies, are they really going to be willing to hire you? Take a deep breath, you’ll get paid.

Agree there are many factors but files do close within three business day, however we contract with ss, therefore should pay on time. There’s no reason it should take thirty to sixty days unless the ss has a cash flow issue. I close for companies that pay on the 15th and 30th and somtimes I will accept 30 days. No notary should wait 45 to 60 days for payment.

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Once again, just another way to grab part of notary fees that are already too low.

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I recently have successfully have lobbied for with title and signing agencies to cut their payment times to 1 week and 15 days max respectively. NO REASON they need to sit on my MONEY , which has already settled as part of deal closed right away. I told them that this is a TRID violation and if need escalate. It definitely lit a fuse under their seats and got them cracking.

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As for companies who pay late, I used to love telling them that they are not capitalized well enough to work with me. I need to be paid upon closing.

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AWESOME !! I wish more notaries have the guts to be like you

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To be honest, there are a lot of companies that can provide you factoring services. The thing is that you need to work with the best guys to get some excellent and exciting offers. Also, you should be lucky with the available free offers. Last year I started to work with some factoring companies in NYC. I choose NYC because there are the best conditions for factoring, and also there are fewer taxes to pay, so for me, that means more profit. The market is massive, and you have from what to choose.

I am looking for information for best option to collect an old invoice. The balance is $95 from June. I don’t know if there is a minimum but I would love to forward this invoice along for settlement of some sort.

Any advice is appreciated.

I think Factoring can work for companies who are undercapitalized. I used to do factoring as a side business back in the early 90s before NAFTA destroyed my business.

It’s not throwing money away. It’s a form of help for cash flow that can allow companies who have enough work to get most of their money in weeks instead of months. The key to making it work is to balance your invoices. Some companies will do a 70-30 split where only 30% of their invoices go to factoring while 70% are not. Others may do more or less of their invoices depending upon the minimum amount required by the factoring company. Either way, it all comes down to the amount of volume your individual business does. To that point, if you’re closing only 10 loans per week, then factoring may not be a good idea because the general rule is that the fewer invoices you have, then you will pay a higher percentage for the factoring. The more invoices you have, the lower your percentage will be. On the other hand, if you’re closing 30-50 loans per week, then factoring may be a good idea, which could get you down into the 1%-5% range.

However, the MAJOR consideration is your contract with the SS you signed up with. You signed their contract(s) that say you will accept their payment 30 days after closing and some may say up to 60 days after closing. These are the terms you agreed to so they are going to pay YOU, NOT A THIRD PARTY, which means you will have to pay the third-party yourself who is the Factoring Company. This can be a pain in the butt for accounting. Additionally, some of the SSs may have a clause that triggers a breach of contract should you use a Third-Party collection service. For the SSs who ‘stiff’ us, they have already breached, I understand that. However, for the ones who haven’t, they may not want to work with you anymore.

In closing, many issues must be considered when thinking about Factoring. First, your volume and capacity for more volume. Secondly, price means the minimum amount required by the factoring companies to get the lowest percentage costs. Lastly, individual relationship(s) with your clients (SSs, Title Companies, Banks) who hire you could suffer. Depending upon the terms you initially agreed to, Factoring may not work for them and you could lose future business with them. However, on the other hand, it may work for new clients if they know upfront that your company uses a Third-Party collection company so they know up front who they will be making payment to.

I am also looking for a factoring company. I don’t have time or the patience to do my own collections. But 25% is very high. When I factor my Appraisal Invoices I am only charged 5%. This is with Sekady Capital.

Love this answer. Lots of great replies. This group never disappoints.