Posted by Paul/MD on 4/4/05 11:20am
Msg #29503

Advantage Funding - Billing answer for Signing Agents ??


I saw an advertisement in a magazine for those who ar "grounded by cash flow problems". Advantage Funding purchases invoices (for a fee of course). Once you bill a client, you forward your invoice to Advantage and within 24 hours they forward to your bank account 70% of the fee and the remainder 30% (less fee) they send to you upon receipt of funds from the client.
It sounds interesting... I don't know how/if it would work for signing agents??

If you have any interest in this, takea look: www.advantagefunding.com

Reply by PAW_Fl on 4/4/05 11:39am
Msg #29510

30% Fee????

That's outlandish. For that fee, I'll set you up on a billing system. For every $100 signing you do, I get $30 just to bill the vendor! Wahoo!!

Reply by MI_Notary on 4/4/05 11:49am
Msg #29514

Re: 30% Fee????

No kidding. I have an accounting background, as well as a legal background. I'll do it for 30% of the fee. Sounds like a collection agency (sort of). You send them your over due accounts and they take 25% to 40% of the balance due when it is collected. However, by what I have read here this company gets an advantage by collecting on all invoices, both new and old, most of which will probably pay and still collects 30%. Why didn't I think of that? Guess I missed the boat on that one. However, I can do my own invoicing, etc. with Quicken. So, I will be saving my 30% for myself.

Reply by Paul/MD on 4/4/05 12:10pm
Msg #29520

NOT 30% FEE !!!!


re-read what I wrote...... they send you the remaining 30% due (less their fee).... I'm not sure what their fee is........

Reply by Cheryl_NV on 4/4/05 11:56am
Msg #29516

This is called factoring. It can be an answer to your cash flow problems but it does cost $$. Most manufacturing firms factor their accounts recivable.

The way it works is as follows:
Invoice $100
Reserve (20%) - 20
Fee (10%) - 10
You will receive $ 70

the 20% & 10% are not acutual percentages as each factoring company has their own rates. The benefit to this is that you get $ no instead of waiting for it but you never recover the fee.

Reply by Shane_IN on 4/4/05 1:23pm
Msg #29531

Probably a factoring company.... The only time I could see them being useful is if you are constantly busy, doing so many closings you can't keep track of your invoices.

I personally will never allow someone to take a fee, just for collecting my money. Better to include late fee penalties on your invoice, and collect higher fees when they are late paying...

If you want to use a factoring company because you have too many closings to handle, I am available all over the state of indiana for a reasonable fee