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Recently someone asked if I accept contributions from others for the main article in FactorTips. The answer is a resounding Yes!
If you have something to say that relates to the subject of factoring and will benefit our readers, please submit it with your name and email address to: info@factor-tips.com. This can include a lesson from a client, a service you
find helpful, a procedure or product you use, an issue you feel strongly about...just about anything. As some of you know, writing articles for publication can be not only very helpful for the readers, but provide you with
excellent (and free) advertising. I’ll be happy to include your name, company, and contact information in the article.
With this “open mike” policy in mind, recently the International Factoring Association’s quarterly
newsletter, The Commercial Factor, printed some very insightful articles for the community of larger factors which speaks to us smaller factors as well. I encourage you to open this issue at
http://www.factoring.org/documents/commercial_factor07-03.pdf (you’ll need Acrobat Reader) and read, in particular, the complete articles described below.
First, Ron Winicour of Gibraltar Financial wrote an
article in his “Stop the Bleeding” column about the issue of usury.
Ron’s words are exactly what those of us factoring with recourse need to hear. In essence he says recourse factors are providing small loans (whether we acknowledge this or not) and need to be keenly aware of usury issues and laws in our state. He provides good suggestions as to how to work within these issues, and what to do if your state’s laws are very restrictive with regard to usury. Don’t skip this one.
Later in the same issue, Ken Walsleben of The Hamilton Group wrote of his experiences with fraud
involving three different clients. These reminded me of a couple stories in Factoring Case Studies, though Ken’s involved
larger dollar amounts. (Yet another reason to stay with small receivables!) The gall of clients actually doing things like this are appalling; but every factor, large and small, needs to be aware that such people are out there.
Factoring (especially factoring large amounts) for a long period of time can leave one with a jaded attitude, as clearly demonstrated in his closing comment: “When they’re prospects, you love them. When they become your client,
they become the enemy! Caveat Factor!” While healthy caution is always needed, I hope as a small factor I won’t consider clients as my “enemy.” That just doesn’t set well with me. However, one can never understate the need for
caution.
Ken also wrote an article entitled “Ethically Challenged?” which again strikes a resonate note for factors large and small. Here he described the lack of ethics
within our ranks, citing examples of factors trying to unload a problem client on an unsuspecting colleague. What can one say other than “Hey, treat others like you want to be treated”? Pretty simple to understand and follow; less easy when there’s a dollar sign with a lot of zeros after it. This article is well worth reading and keeping in mind when a client outgrows your service, and/or you’re considering taking over an account from someone else.
Again, you can read these articles with Acrobat Reader at http://www.factoring.org/documents/commercial_factor07-03.pdf. The Commercial Factor newsletters are sent to all members of the International Factoring Association ($200 annual membership, and well worth belonging if you’re serious about factoring, particularly larger amounts). Also, you can receive a free subscription to The Commercial Factor by sending an email to info@factoring.org and stating Subscribe in the subject line.
Jeff Callender
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Each issue we give away a free item from our catalog! Last issue Bill Jaffin
of Jaffin Financial Group in San Ramon, CA was the third person to respond and won a free copy of the 
This time, be the fifth person to email me at 
