Comments for The Factor Guru

Comment on Big Sanctions in Bankruptcy Court a guest blog by Scot Pierce by Brian Center

Brian Center — Wed, 24 Feb 2010 01:00:32 +0000

Gen and Scot:

Thanks for this info. We all tend to know the rules but clearly you can see how something can spiral out of control. Always good to see real examples of same to offer more encouragement to batten down the hatches of our procedures.

All the best.

Comment on Factoring and Gambling: Part II by Brian Center

Brian Center — Tue, 21 Jul 2009 22:21:33 +0000

Dear Guru:

Excellent Points and well presented. Learning from mistakes is perhaps the hardest to do – we generally don’t want to see our errors.

Thanks,

Comment on Understanding the Story… “What If” a guest blog by Darla Auchinachie by Cole Harmonson

Cole Harmonson — Fri, 10 Jul 2009 15:18:21 +0000

We have had a couple of similar instances, we recently turned one down because the financials, agings, backup, etc. were too good to be true. Just for kicks and to verify that my “gut feel” was correct, we kept going through the process to the verification stage, where the client offered to “help” us with the verifications, so I obliged, again just to see what kind of [bull] he would bring to the table. What do you know, faxes that looked very similar to one another verified the entire balance. Once we told he we would be calling these august institutions ourselves, he ran off like a whooped goat. Oh and by the way, he was in a huge hurry, which makes us want to slow down even more. I love this business and it is fun, but if you bought into that deal you would be “hurtin’ for certain”. Thanks Cole.

Comment on What Trends May Signal by Cole Harmonson

Cole Harmonson — Sun, 31 May 2009 16:05:40 +0000

Gen- Great stuff – I know it is a pain, but we routinely collect financial information from our clients, not so much to analyze, although we do review, we find that those under stress cannot produce financial information, thus giving us another sign we should pay greater attention to that client. We also try and develop a relationship with their banker, so we can find out if and when overdrafts are occuring. Thanks for sending, keep it coming.

Comment on Early Warning Signs… by Stewart Chesters

Stewart Chesters — Tue, 19 May 2009 04:12:45 +0000

This is a great tip. We have seen this quite a few times. We have also seen it when the client resubmits old bills and they just add a number or letter, quite often by putting them on account debtors with lots of invoices.
Definitely a type of fraud that escalates if the client sees its not caught early on.
Nice Blog btw Gen.