How to Run a Small Factoring Business (The Small Factor Series Book 3)

Ask your attorney about usury laws and licensing requirements in your state (for example, in California you need to obtain a state lender’s license) and be sure your practices are in compliance. If your attorney doesn’t know the answers to these important matters, get a referral to one who does.

This is called a “check conversion penalty” or “misappropriated funds penalty.” Experienced factors do this for a good reason: it works.

I use RightSignature.com and it works well for me. What follows are RightSignature’s two methods of creating and e-signing a contract.

Make certain your address appears prominently on the invoice as the “Remit to” address. This is discussed further in the chapter, “Record

There are several companies that provide this service, such as RightSignature (www.RightSignature.com), EchoSign (www.EchoSign.com), RPost (www.RPost.com), DocuSign (www.DocuSign.com) and others. Search “electronic signature” or “e-signature”

There are many out there and I use Carbonite (www.Carbonite.com), which is priced quite reasonably and works just fine. Once

International Factoring Association (www.factoring.org) is to “assist the factoring community by providing information, training, purchasing power and a resource for the factoring community.” It highlights developments and changes in the industry and provides a forum for educational meetings and seminars. IFA members have group buying power in nego

If you ever have the opportunity to hear Bob Zadek speak you should do so, regardless of the size of your factoring operation. And if you are thinking about graduating to larger clients and receivables at some time in the future, his seminars and legal documents are well worth every penny you pay for them.

Attorney David Jencks has prepared complete legal document templates especially for small factors, which I recommend. They are called Basic Legal Documents, Additional Legal Documents, and Complete Legal Package, and are available for purchase and download from www.DashPointPublishing.com