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April 2003

Vol. 1 No. 4
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ABF Journal, April 2003
April 2003

The World Of Factoring

The Evolution of Factoring
By Howard Brod Brownstein, Contributing Editor

From its humble beginnings as the mainstay of rag trade and lender of last resort, factoring has reinvented itself to remain an important financing alternative for manufacturers and service providers alike. In the following article, Howard Brod Brownstein speaks with several industry professionals and traces the evolution of factoring. (Ref # FAC015)

Now You See It… Has Non-Recourse Factoring Performed Its Final Disappearing Act?
By Thomas G. Siska

As many factoring firms scramble to differentiate themselves, the service side of factoring provides the best route to accomplishing this goal and has some factors taking another look at non-recourse factoring. While the pendulum may never fully swing back to pre-1990 levels, a company can still find full credit protection from its factor. (Ref # FAC016)

Factoring: Helping Small Service Companies Grow
By Barry D. Yelton

Service companies in an early stage mode often find themselves in the frustrating position of turning away sales opportunities due to a lack of financing. Factoring offers such companies a way to facilitate ongoing financing through a hands-on approach and a close working relationship. (Ref # FAC017)

International Factoring: A Modern Solution for Cross-Border Financing
By Tom Otte

In weighing alternative financing solutions for a challenging environment, CFOs need to consider the dynamics of their international position and how custom-tailored financing arrangements can benefit their operations abroad. (Ref # FAC018)

Community Factors… A Bit Saltier Than Most
By Patricia J. Burns

Community factors tend to be a little bit saltier than most, but that allows us to figure out how to tailor a service to meet the needs of the small business customer. If the truth be known, most of us rely more on our sixth sense than on all of our academic training. (Ref # FAC019)

PACA Claims & Security Interests: Good Guys Sometimes Finish Second
By Bruce H. White and William L. Medford

Congress enacted the Perishable Agricultural Commodities Act (PACA) in an effort to protect agricultural suppliers. However, its benevolent efforts caused another effect – the impairment of otherwise first priority liens of commercial lenders. (Ref # LGL011)

Credit Insurance & Factoring: A Winning Combination
By David Clark and Joe Ketzner

Both large and small factors have successfully utilized credit insurance to mitigate risk, improve cash flow and enhance profitability. David Clark and Joe Ketzner of EULER ACI discuss the credit insurance product and the benefits of adding this important tool to the factor’s arsenal. (Ref # INS001, FAC020)

Factoring in Economic Uncertainty
By Kevin Sullivan

Companies faced with the challenges of uncertain economic times seek ways to both minimize risk and find stable financial partners to provide creative solutions to see them through the tough times. (Ref # FAC021)

A True Factoring Industry Veteran
A Profile of John Daly, President of CIT Commercial Services

If anyone knows factoring, it’s John Daly, one of the true veterans of the industry. Just as factoring traces its roots to the textile and apparel industries, so does Daly. He began his career with Milliken & Company, a large textile company. In 1973, he left the textile business and accepted a position with Manufacturers Hanover Commercial Corporation. This marked the beginning of his career in factoring. (Ref # EXEC005)

Factoring With Finesse: The Finer Points of Negotiating Contracts
By Harvey S. Gross

Factoring relationships are principally governed by the factoring contract that ideally reflects the rights and remedies of the parties, along with procedures, systems and reporting requirements. The following article highlights key elements required in factoring contracts which help to avoid unnecessary costs and difficulties down the road. (Ref # FAC022)

It’s Not Just About Article 9 — It’s What You Don’t Know About Article 3
By Michael W. Ullman

You’ve read countless articles that painstakingly describe every nuance of the revised Article 9 and you’re confident that your security interest has been perfected. But be warned – what you don’t know about Article 3 and its interplay with Article 9 can cost you. (Ref # LGL012)

The Crisis Cure: A Checklist of C’s
By William J. Hass, CTP

Let’s face it — bad things can happen to good organizations, especially to those that resist change. When crisis hits, it is useful to organize the factors impacting the overall business strategy into an environmentally oriented framework such as EARS (Environment, Action, Results and System). (Ref # TM011)


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