Payost vs. Shamrock Trading Corp

In the wake of a natural disaster, storm restoration companies can face an uncertain future. That’s because they often expend all their working capital getting their crews to the location and keeping them on the job 16 hours a day for days at a time.

When the job is done, they’ve got nothing left in the bank to meet payroll, perform equipment maintenance, pay off the subcontractors or get ready for the next storm. And it’s going to be 90 to 120 days before the utility pays off their work invoice. For this reason, they sometimes find themselves seeking help from the likes of Shamrock Trading Corporation. But is Shamrock their best option?

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What is Shamrock Trading Corporation and what do they offer?

The company that is today called Shamrock Trading got started back in 1986. At that time, they only offered freight brokerage services. In the years since, they’ve expanded into other areas and now offer a wide range of products including invoice factoring, international trade finance, computer software, Shamrock fuel, and Shamrock logistics, to name just a few.

For the purpose of this piece, we’re concerned with their invoice factoring which is the product most often driving storm restoration companies to seek their help. Shamrock claims that their invoice factoring services provide:

  • Up to 97% advance funding on your invoices
  • No invoice uploading fees
  • Fixed factoring rates
  • Non-recourse factoring for some customers
  • Fast and responsive customer service

That’s their side of it. It’s not hard to find customer reviews, however, that paint quite a different picture. So we thought we’d check them out ourselves and see where the truth lies.

Source: https://www.shamrocktradingcorp.com/

How Does Shamrock Trading Corporation Work?

Shamrock Trading Corporation works by purchasing invoices form companies with cash flow issues. The money is intended to provide these companies with the working capital they need to meet their immediate needs and stay in the game—whether that game be trucking or storm restoration.

Shamrock Trading Corporation Qualification Requirements

Since Shamrock Trading deals with so many different types of companies these days, it’s hard to pin down what their exact requirements are. Those requirements also vary depending on the size and type of your business. For the most part however they tend to look for companies that:

  • Have been in business for a minimum of 1 year
  • Have at least $50,000 in annual revenue
  • Can prove a genuine business address (no home addresses please)
  • Are willing to sign a 1 year contract

In addition, they also require that...

  • The owner of the company must have a personal credit score of at least 600
  • The owner or the business must not be in active bankruptcy
  • The invoices submitted must not have any liens against them

Beyond that, things get a bit murky because as we mentioned, they have different criteria they apply to different types and sizes of companies.

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Source: https://www.shamrocktradingcorp.com

Application Process

Before you can apply for Shamrock invoice factoring, you’ll need to open an account, which usually takes just a few minutes. Provide them your name, your company name, and address, a phone number and (preferably) a business email address. Submit the information and then wait. Someone will typically get back to you the same day.

The sales rep will ask you more detailed questions about you, your company, and your finances. If they deem you worthy, they’ll approve you for factoring. Keep in mind the advance rate you get along with interest rates and the number and size of the various fees involved will depend on various things. Including your credit score and the size and number of invoices involved.

Shamrock Trading Corporation Pros and Cons

Shamrock Trading is a big corporation that has provided assistance to a lot of different companies over the years. But that alone isn’t enough reason to use the service. Here are the pros and cons as we’ve been able to discern them:

Pros

  • They’ve been in business for a long time
  • They offer their favorite customers up to 97% advance funding of invoices
  • They typically offer pretty quick payouts once approved
  • There’s no minimum volume

Cons

  • The application process is lengthy
  • Actual advances on invoices are more like 80%
  • They perform a hard pull credit check
  • You must buy back non-performing invoices
  • The penalty for non-performing invoices is severe
  • The early exit fee is even more severe

Shamrock Trading Corporation Review

A review of the Shamrock Trading Corporation pros and cons suggests their invoice factoring is likely not a good match for small to mid-sized companies.

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Source: https://www.shamrocktradingcorp.com

Shamrock Trading Corporation vs Payost Comparison

“Risk more than others think is safe.” — Howard Schultz

If you’re a big company with outstanding credit and tons of invoices to factor, Shamrock Trading invoice factoring may be something you want to consider from time to time.

However, if you’re a company that has unpaid invoices being held by a AAA credit rated company then you should be talking to the people at Payost about invoice financing and leave factoring to others. At Payost:

  • We never conduct a credit check on you
  • We don’t care if you are a relatively new company
  • We don’t care how many employees you have
  • And we never force you to buy back invoices

Instead, our model is based entirely on the creditworthiness of the company holding your invoice. As long as they are a utility or other AAA credit rated company, we can help you. And that’s true whether you’re a storm restoration company or a caterer or any other type of business.

Bottom Line: Should you try Shamrock Trading Corporation?

It depends since Shamrock Trading invoice factoring is best for big companies with outstanding credit and tons of invoices to factor.

But if you have a different type of company and if you have outstanding invoices being held by a utility or other AAA credit rated company, then it’s better to try Payost. Selling such invoices to factoring companies is selling yourself and your future short. Payost is the smart alternative to:

  • Invoice factoring
  • SBA or bank loans
  • Short or long-term lines of credit
  • Merchant cash advances
  • Or any other type of advance funding

Contact Payost and find out what we can do for you!

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