Carnival Tricks and Factoring Proposals....

I recently took my family to a carnival that is quite well known in the area. They have lots of rides and games - basically lots of opportunities to separate parents from their hard earned cash. However, there are some experiences that I had at the carnival that related to certain dubious factoring proposals that I have seen through the years. So with a bit of levity, here is one sotry:

The Spider Woman with Eight Legs - She's Alive
The sign advertised that for $1, you could see the spider-woman. A lady with the body of a spider - alive - and you could talk to her! You could see her legs. Oh! but no flash photography, because the flash may reveal the mirrors hidden in plain sight.....and you may be able to see that it's just a person with a spider custom and makeup. How does this relate to the factoring industry? Some times prospect will get factoring proposals with seemingly incredible terms - really cheap money - no fees. The terms are unbelievable - amazing! And much like the spider woman, there is a whole bunch of mirrors hidden in the proposal that are unveiled in the legal language of  the factoring contract. But those who are careless and sign without reading it get sucked into the illusion.

Lesson: If your factoring proposal looks too good to be true - it probably is. Read the contract before singing and be sure to understand it. If you don't understand it - get a lawyer.