Factoring Operations Manual FAQs

Frequently Asked Questions

I have been in the factoring business for 30 years. How can your operations manual help me now? This manual was not designed for someone with zero knowledge of the factoring industry. In fact, it was written for the purpose of helping factors streamline their existing operations and minimize their risks. It’s the first Factoring Operations Manual that uses the “best practices” developed by industry practitioners with over 60 years of collective experience. More importantly, many banks are now requiring written policies and procedures before they will lend money to a factoring operation.

We have created our Factoring Operations Manual with two goals in mind:

  1. Protect our clients by using proven policies and procedures that we KNOW are effective. From the beginning, our goal has been to make it as easy as possible for factors to incorporate these policies and procedures into their business.
  2. Create a useful tool — not just an obligatory manual that sits on the shelf and gathers dust. We know that most factors just don’t have the discretionary personnel and/or the legal expertise necessary to handle time-consuming special projects such as the development of an Operations Manual. Our experience has been that our Operations Manual can be one of the most powerful management tools available to company supervisors and administrative staff if it is developed with that goal in mind.

Are there some new special “secrets to factoring” in your Operations Manual?

It depends on how you define “secrets to factoring.” Simply put — our manual is just full of good, solid policies and procedures developed by experts in the industry who have, through their own experience, already blazed the trails; already taken the hits; already experienced the good, the bad, and the ugly! They have taken this knowledge-base and reduced it to a written policies and procedures manual for the factoring industry. Using their proven operating methodologies, this manual gives you a system for operating your factoring business on a daily business. It is NOT about learning new things or secret techniques. Instead, it’s about taking advantage of 60 years of collective experience to save you time and money — NOW!

My company specializes in tracking and staffing. Does this manual cover those particular industries?

Our Factoring Operations Manual was written for the purpose of introducing the factoring industry to the “best practices” in factoring. We recognize, however, that some changes might be needed for specific industries. Because of that, and for an additional charge, we will work with your company to customize any procedures that are essential for your operation to ensure that our manual is consistent with the trade practices in your specific niche market. But, regardless of industry, there are certain credit policies and due diligence procedures that are necessary and prudent to use in operating any factoring business.

Is this a training manual for my staff?

Our Operations Manual was not written with the specific goal of training your staff. However, it will enable you to have very specific policies and procedures in place so that questions from new employees can be kept to a minimum. It also allows you the freedom of referring your staff to written policies and procedures so that you can concentrate on your duties and responsibilities — rather than answering the same questions over and over again.

How can I trust the information in this manual?

Please look at the bios of the industry experts that participated in writing this manual. Collectively, they have over 60 years experience in the factoring and secured commercial credit industries, including the legal issues associated with factoring, the ownership of their own companies, the day-to-day operations of several factoring businesses, and consulting to factoring companies. Trusting this information is the easy part of this manual. Following the procedures in NOT always easy, but essential, to minimize your risks.

I already have legal forms that I use in my factoring business. Can I just get the Operations Manual without the legal forms?

No, the legal forms are an integral part of the manual. While you might not need every legal form, the manual incorporates legal and traditional forms to ensure that all policies and procedures mesh together. Additionally, laws change from time to time, and so do legal forms. These are the latest forms available to the industry.

I already have an Operations Manual for my factoring business. But, I would like to purchase your legal forms. Can I do that separately?

Yes, we realize that some factors already have a written operations manual in place.

How can I justify spending this much money for an Operations Manual?

It’s simple. You can’t afford NOT to have this manual. One hit, on one bad account, will more than pay for this manual.

To sum up our offering, the factoring business is all about credit risks. And, making money is all about how you manage those risks by utilizing policies and procedures that are designed to protect your assets. It has been said many times, “it is not will you take a hit, but when.”

You need a system for managing the important aspects of your business. That’s what our Operations Manual gives you. To our knowledge, it’s the only commercially available manual in existence that gives in-depth, step-by-step policies and procedures for operating a factoring business.

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