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.