Read the Fine Print on Factoring Contracts

Most factoring companies are ethical and honest. But there are some out there that will take advantage of you. Therefore, you or your attorney should read the contract very carefully before signing on the dotted line. In looking for working capital, you might fill out more than one application in order to get the best "deal". In one scenario, a customer inadvertently pledged his companies receivables by simply signing the application. Then, when he chose another factor to work with, due diligence disclosed that there was a lien on the A/R from the other factoring company. Although it was cleared up, it caused a delay in funding.

My funding sources are all above board and do not add ridiculous clauses like that to their contracts. If you are wanting to establish a factoring relationship with a trustworthy and reputable factoring company, click here for a free quote.

Kent Harlan, CPA
Ozarks Capital Funding, LLC
www.ocflink.com
kenth@ocflink.com
417.849.7394