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

I recently found a company that is interested in doing factoring for me. Factoring is when a company pays you for a proven invoice. Meaning you submit your invoice to them, they review it and confirm it, and they pay you. There is a small fee or this but if it works out then this would be awesome for me. I have $2500 in outstanding invoices from last month and not much to operate on. It’s best to group your invoices weekly as the fees go down for grouped invoices. But for anyone else in the same boat you just have to find a FACTOR who will take a lower fee. Best of all this is not a loan, it doesn’t go on credit, and it looks at your growth potential rather than your past work. For instance, if you are not taking signings because you are waiting on being paid… no gas, no printer ink, no paper. Now you can take more orders and live comfortable because the factor will pay you today (for a small 1% fee on the invoice per 7 days). The way it works is they’ll give you 75% of the money upfront today and when the invoice is paid the remaining 25% once paid less their 1% per week. Let’s say at the end of the month on the 27th you put all your invoices per company in and you still have another 15 days to go. That 1% or 10 per company isn’t much to pay to have the money for the 1st of the month is it?

I just found a company that is for the first time interested in testing this out with me. I’d love to see what the thoughts are are if they work this out who might be interested. I think it’s absolutely awesome idea and really fits our line of work.

Thoughts?

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Why would you do this? I have found that 98% of all SS pay with out even an email reminder. The other 2% require one or more emails but unless they have gone out of business they will pay. I have been doing this for 15 years and have had only one company that never paid me because they closed their doors. Yes they may take up to 60 days in a few cases but who cares. I have checks coming in everyday from signings I performed a week or a month ago. So my response is I think this is a crazy idea but if you want to give your money away then go for it.

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I’m not sure who you are working with but many of the vendors that call me payout 30 to 45 days later. Sometimes 60 days later. And from the forums that seems to be a popular consensus. It may have to do with where you are working or where your orders come from but I’m certain that not everyone has the luxury of checks coming from a week or even a month ago. I wouldn’t say do it for the invoices that do pay within the 30 days but it is an option for those who need operational cash flow for outstanding invoices.

Please post again about how this works out for you. Having never taken a cash advance to pay bills before a paycheck came in, I have no direct experience with such middlemen. I do, however, have a fair amount of caution…

Some additional thoughts on this…While waiting for payment from an agency for whom I’ve only worked once, I am more comfortable declining additional signings until I have my first payment, in full and within a reasonable timeframe, in my account. I realize this is extremely conservative, but it has worked out well for me. I work for known payers until the new agency has paid me. I spend no time chasing invoices since I began doing this. I am very candid with the schedulers about this when they call for a second, third and fourth signing before I’ve been paid for the first. I am not equipped to be in the business of extending credit to signing agencies, and am not inclined to pay a third party any portion of my income to chase it for me.

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Maybe I am just paranoid, but this Factoring sounds like a scam, or some type of payday advance. I believe in managing the financial part of my business to where I don’t have a backlog of unpaid invoices. I know the pay schedules of all the companies I work with, so it’s nice to receive checks in the mail or direct deposits weekly because of the variety of schedules. This Factoring sounds like a way to get caught up in a cycle and ultimately paying for financial mismanagement. Maybe one should re-examine the companies you work with that are causing you to feel the need to Factor in the first place, especially if there are many invoices that you aren’t getting paid on.

May I ask why is it so hard to contact the companies that aren’t paying, or to stop doing business with them?

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I like this. Where do I sign up???

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What’s the name of the company? Nice to have the option to have invoices paid quickly. Thanks

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Have you looked to see if they’re a we’ll know factor (or big bank related), in many cases (not all) you get what you don’t get paid for with lesser known factors. Factors and barter companies as a whole aren’t someone I’d want to do business with.

It doesn’t look good for your overall cash flow as a business owner, because while you are reduced Ng your receivables, you are showing that you aren’t able to effectively manage them (and therefore your cash flow) on your own. Maybe you don’t care for that at the end of the day.

I think just like lowball signing fees, if we as a group stand up by not taking lowball signings and not taking jobs from companies that don’t pay, they will sort themselves out by either stepping up to the plate or going out of business.

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I came across a company doing factoring just yesterday. It sounds like a great idea, especially for companies that are 45-60 net. Especially for newer notaries if cash flow is an issue, and they don’t have other means of caring for their immediate needs. You don’t have to use the factoring company for ALL of your invoicing. I see a great benefit in using it for the bottom barrel signing agencies. Why should a signing agent get the wrong end of the payment stick if they (signing company) files for bankruptcy? Why not have a big company friend do your heavy lifting for you? Why even spend time chasing money after the signing? DELEGATE, and spend that time improving your business, and doing more signings.
The company I came across yesterday was feeguarantee.com by the skysail group. I have not investigated them any further than a quick look at the website. So I am uncertain of their business structure/experience, and I am not recommending them over any other factoring service.

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.