Endorsed by International Factoring Association, RPost® Provides Cost-EffectiveMethod for Sending Electronic Notices toClients and Debtors with Delivery Proof
LOS ANGELES—December 19, 2007—RPost®,the leader in managed outbound messaging, today announced that the factoring industry is widely adopting RPost as the service platform for business-critical communications with clients and debtors. Today, more than 20 factoring companies rely on RPost, including AeroFund Financial Inc., Jhanira Capital and United Capital Funding Corp.
The International Factoring Association has endorsed RPost’s Registered Email® messages as a viable method for factors to send important communications such as notices. RPost saves time and money overtraditional paper-based communication methods factors typically used, including fax and certifiedmail, resulting in great efficiency. Using RPost’s Registered Email services, all notices can now besent, tracked and proven with the click of a button.
“RPost’s Registered Email service receipts provide admissible evidence of Registered Email message delivery, official time sent and received, and authenticity of message content. By utilizing RPost services, we would also argue, not only is the email admissible, but the authentication of its content and context may lend it greater credence than traditional receipted mail, courier, and fax alternatives,” states Jon Neiditz, head of the information management practice of Locke Lord Bissell & Liddell. “This is significant not only inadding to the weight of the evidence in general, butbecause in addition to proving delivery of notices,factors must exercise ‘control’ over documents suchas electronic chattel paper to ensure theirenforceability under Article 9 of the UniformCommercial Code. RPost’s authentication techniquesare likely to meet these ‘control’ requirements.”
A specialized type of financing, factoring is thebusiness of purchasing and collecting accounts receivables or of advancing cash on the basis ofaccounts receivables. One legal document for theindustry is chattel paper, which shows both a debtand a security interest in specific goods, andparties secured under it must make sure any changesto the authoritative copy are readily identifiableas an authorized or unauthorized revision. Factorsare required to send official transaction noticesand maintain detailed delivery records to provenotices were sent and received. Most factors rely onfax, courier, and certified mail to send importantcommunications, and they retain all relevant faxconfirmation slips and mail receipts to provedelivery in case of dispute. The process is oftenfrustrating, expensive, time-consuming and fraughtwith inefficiency.
“We needed a solution that could speed-up theprocess of transferring critical documents and moreimportantly protect us from debtors and clients whoclaim they didn’t receive a notification requestingor receiving a payment,” said J.W. Reed Jr.,president and CEO of Jhanira Capital Funding. “RPostgives us legal proof of delivery of allnotifications we send, so now we can spend less timeon administrative tasks such as follow-up calls toensure receipt and more time on mission criticalbusiness tasks.”
RPost enables factors to leverage the efficienciesand cost-savings of email for managing their business communications. Registered Email messages can be used when needed for an average cost of $0.59 permessage, far less than overnight delivery or certified/registered snail mail, and works with anyemail address.
Service Benefits—Factoring the Time- and Cost-Savings of Registered Email services:
• Ensures that notices are enforceable by meetinglegal requirements for delivery
• Minimizes cost to a fraction of delivery serviceslike courier/certified mail
• Reduces sending time to the speed of email
• Eliminates the hassle of follow-up calls toconfirm notice delivery
• Gives factor the upper hand in any dispute involving notice content or delivery status
• Increases responsiveness since the recipient isaware that factor has official proof of delivery
• Simplifies record-keeping, as all delivery receipts are sorted automatically, stored electronically
“Factoring is an information-intensive industry thatrequires painstaking delivery and management oftransaction notices associated with assignment andchattel paper, and until now hasn’t been able tofully realize the efficiencies of email,” said Zafar Khan, CEO of RPost. “RPost provides a simple,inexpensive solution to the shortcomings inherent instandard email because it proves the content ofmessages and their delivery to every Internet maildestination and provides verifiable evidence of thetransaction in case of a dispute. A major convenience for factors is the pure simplicity of the service which does not require the emailrecipient to sign up for the service or maintain additional user names and passwords.”