Insights
Insights for factors and ABL lenders
What account executives and field examiners look for, and how to find it in the paperwork.
Pre-billing: what the bill of lading gives away
An invoice dated before the goods shipped, or for more than was delivered, is a purchased receivable with nothing behind it. The shipping documents usually show it, if you put them beside the invoice.
Misdirected payments: finding them on the bank statement
When a customer pays your client instead of you, the invoice still looks open on the aging and the cash is somewhere else. The bank statement is where it shows.
Reading an AR aging like an examiner
An accounts receivable aging is the report a factor funds against every week. Read it for what has moved, what doesn't belong, and whether it ties to anything else, not just for how much sits over 90 days.
Running examinations in-house: the paperwork problem
Most of an examiner's time doesn't go on examining. It goes on requesting documents, chasing the missing ones, renaming files and rebuilding last year's report. That's the part software should take away.
On-site, remote or desk review: choosing the right exam
Not every client needs an examiner on site every time. Matching the kind of exam to the client's risk lets a small team cover a larger portfolio without missing what matters.
NOA acknowledgments: why verification starts there
A notice of assignment tells a customer to pay the factor. An acknowledgment shows the customer got the message. Without one, every other verification step rests on an assumption.