We have all heard it said before that it is in the fine print, read the details.

While seeking a factoring company you fill out several forms and have numerous conversations with so many different companies you forget who is who. The conversations start sounding the same and you know a decision needs to be made.

A common question that you should have been asked is about any liens against your receivables and of course you said no. You then pick the factoring company you want to use and they begin due diligence. You are eagerly waiting for this process to get over so you can receive your 1st funding only to receive a call from your factor that a lien has already been applied against your receivables. Not only that but another factoring company has a 2nd position because they filed a lien also.

Trust me, I am not making this up....it happens every day. As a matter of fact this exact situation happened just last week to one of the clients that decided to go with one of my recommended funding sources. They had filled out some applications with several other sources they contacted and did not realize that in the signature release the factoring companies had language that gave them the right to go ahead and file a lien against their receivables.

So instead of getting funding on the day the due diligence process was over, two liens were returned and funding had to be put off until the lien was cleared up!

I do not understand this tactic and I personally think it is very underhanded. Would you want to do business with a factoring company that does this?

So if you are looking for a relationship with trustworthy funding sources just Click this Link for a free factoring quote.

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Thanks for reading!