I am looking to start a new business and had a question about credit
risk. Any assistance would be highly appreciated.
I understand there are companies that will check a (potential)
customer for credit worthiness and will take the risk of non-payment
upon themselves, for a fee of course, (eg.for a %age fee of the
transaction.)
Would anyone know of such finance companies?

I am looking for such a list for my start-up.

Thanks,

SH

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Clarification of Question by silent_hissing-ga on 17 Jan 2005 18:51 PST

This is in San Francisco, USA.

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Clarification of Question by silent_hissing-ga on 18 Jan 2005 10:04 PST

Hello,

The "factoring" finance companies that I have corresponded with, do
not take upon themselves the risk of non-payment. They only help you
get cash immediately for your invoices. If it turns into a bad debt,
you still have lost an amount equal to the invoice.
I am guessing this is a natural problem all start-ups face. Is there a
way out? We are open to refraining from selling our products to a
particular company if our finance-partner does not consider the
company worth of credit.

> I understand there are companies that will check a (potential)
> customer for credit worthiness and will take the risk of non-payment

Silent_hissing --

Indeed there are such firms, generally referred to as "factors" or
"factoring companies."  Try a Google search using:
"factoring"

or

"factory" receivables

Best regards,

Omnivorous-GA