Reply With Quotei handle my depts. recievables and its a mother chasing 60-90 day money. thats what has kept me from jumping into my own gig is seeing how even big companys dont pay 30day money.
as for your deal i really dont have an answer for ya sorry
Any biz owners have experience factoring their receivables? My A/R are growing but its taking up all or working cash.
We have an equity line, but not much room left on it, Wells won't consider an increase for a couple more months.
A/P is only about half of A/R. 60 days is about our typical turnaround time by the time the brokers get the reports and requests off to the banks and the check finally arrives.
I may need to switch banks altogether??
i handle my depts. recievables and its a mother chasing 60-90 day money. thats what has kept me from jumping into my own gig is seeing how even big companys dont pay 30day money.
as for your deal i really dont have an answer for ya sorry
Mandelon:
You might try some of the specialized, smaller business banks.
Alliance Bank (www.allbank.com) in Culver City has loan products similar to factoring, sans the baseball bats and gold chains. They even write loans to pay off judgments. I used to do a lot of work for them, my contact was Will Rogers.
switching banks won't solve your problems and "factoring" is just more fingers in your wallet... we have several "world leader" customers well known and giants in their industries and they pulled that 60-90 pay with us and our little "fly on the elephant's ass company" threatened to cut them off and bam we got our money on time every time.
build the relationship so that you're "needed" by your customer and get somebody at your outfit to play the "bad guy" and get you money or get clients that will pay on time. No pay no play! You have leverage in this situation and you must use it to survive.
Get that bank out of your pocket...take you time and don't rush yourself. plan your work and work your plan..
I always seem to have the same problem. The longer the big companies leave"YOUR" money in the bank the more interest they make. I have had them write a check on the 10th of amonth and not send it out for 90 days and then tell me look at the date on the check.
I find it helpfull to get friendly with their A/P people.
i handle my depts. recievables and its a mother chasing 60-90 day money. thats what has kept me from jumping into my own gig is seeing how even big companys dont pay 30day money.
as for your deal i really dont have an answer for ya sorry
From what I see the bigger the company the slower they are at paying.
Get the hell out of Wells Fargo and dont use B of A. That should be your first step. I would need more info on the rest to assist further..... :boxed:
Not that I have a clue what I'm even doing....
Get the hell out of Wells Fargo and dont use B of A. That should be your first step.
I was in the banking industry for 10 years & I agree 100% w/ NB!!
Mandelon,
I wish I had something positive to say, but we are in the same boat! Companies who want discount terms, get them, write checks on those days taking the discount, then sending them 2-8 weeks later! Our AR person goes nuts trying to collect sometimes. Our line is maxed and the bank won't budge on additional funds. It seems that in todays business climate that our customers think we should be chasing 60-90 day monies!
100% of my clients are attorneys, banks and cities/municipal agencies (thank god no insurance companies).
60 days is nice, consider yourself lucky.
90-120 seems to be the norm.
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