ChosnFriends adds factoring services
Thomas Russell -- Furniture Today, November 24, 2003
High Point — Furniture industry consultant ChosnFriends has begun offering factoring services, mainly to importers and small manufacturers, through a subsidiary, Port Capital Partners.
Port Capital, based here, has been in existence for about two years, providing logistics and administrative support for furniture importers. It didn't fully launch into factoring until October, after it secured financing and completed a nine-month "proof of concept" phase.
"We wanted to crawl before we ran," said Port Capital President Jim Hardwick. "We were concerned there were things we didn't know about the industry. The best way to learn is by doing."
"The concept has proved itself," said Roy Briggs, chairman of ChosnFriends, "but we didn't begin to solicit business until just before the October market."
Briggs said ChosnFriends had handled paperwork for larger factoring operations for about five years before deciding to offer factoring to smaller clients the larger factoring firms don't serve.
The larger organizations typically work with companies with more than $1.2 million in annual sales. Port Capital has a threshold of $400,000 to $500,000 in annual sales.
Hardwick described Port Capital's clients as entrepreneurs who are working hard to attract retail customers. The company purchases clients' accounts receivables, and handles credit checks for prospective retail customers. It also provides claims handling.
"If we can build up our factoring business, it will be very worthwhile," Briggs said. "It's a good, steady business. As conservatively as we are doing it, it's also a very safe business."
