How to Select the Right Factor

Ok, you are sold on selling some invoices, you see the benefits, but you are just not sure how to select the right factoring company. Here are 7 essential factors to consider and compare: Read more

Using a Factor’s Credit Risk Expertise

You probably already know about the ability to sell invoices to a Factor. You may also know you don’t have to Factor all your invoices – just the ones you want or need. But did you know a Factor could provide tremendous help on invoices that you don’t even factor? Read more

Factor Marketing – Perfecting the Elevator Speech

Quick! Tell me what you do in two to three sentences. The elevator speech is a cornerstone marketing component for developing accounts receivable factoring clients.

Like with most businesses, the elevator speech is a brief commercial describing your services that can be used when contacting customers in person or by phone.

Here are five key elements of any successful elevator speech:

1. Personal and Business Name
2. Services Offered
3. Who benefits
4. What’s In It For Them (WIFT)
5. Duration of 30 seconds or less

This introduction assumes there is a limited amount of time, like an elevator ride, to describe what you can offer. When putting the components together, a factoring consultant elevator speech might sound like the following examples:

“Hello! My name is Tracy Rewey with Diversified Investment Services. We help companies generate cash by purchasing outstanding invoices. We specialize in saying yes when the banks say no. Please contact us if you or anyone you know can benefit from an advance on their accounts receivable.”

“I’m Joe Smith owner of Cash Flow Solutions. We supply something every business needs – money! We provide cash advances on slow paying invoices. Rather than waiting 30 days for payments, our clients have immediate access to funds to meet payroll, pay bills, take advantage of supplier discounts, or expand their business.“

The elevator speech should be customized to your individual style and the types of clients targeted. Be sure to spark interest and finish by handing the person a business card kept handy in a jacket pocket or an outside compartment of a briefcase.

Practice makes perfect so recite in front of a mirror and practice on family or friends. Once you have the elevator speech mastered you’ll be ready to use network marketing to develop clients that can benefit from accounts receivable financing.

Earn Consultant Fees Factoring Invoices with Millennium Funding!

Factoring account receivables is helping businesses through these tough economic conditions opening the door to earning opportunities for cash flow consultants.

FactoringInvestor (FI) caught up with Michael Ponomarew (MP) from Millennium Funding to fill us in on how they are helping consultants earn fees by helping businesses sell invoices. Read more

What is Non-Notification Factoring?

 

When a factor makes an advance to a business on invoices or accounts receivable they want to be certain payment is received from the account debtor. Whether or not the account debtor is notified of the assignment differentiates between notification factoring and non-notification factoring.

With Notification Factoring the account debtors are notified the invoices were purchased and are requested to make payment directly to the factoring company.

In the case of Non-Notification Factoring the account debtors are not notified the business sold and assigned the receivables.  Also known as confidential factoring, the invoices are generally paid to a lock-box.

Factoring is primarily handled on a notification basis.  In fact about 82% of factoring involved notification with non-notification only comprising 18%, according to the most recent survey results published by the Commercial Financing Association (CFA).

While notification factoring continues to be the industry standard, there are times when non-notification factoring will best provide a company’s need for confidentiality when factoring their account receivables.

 

Bibby Financial Services Funds $1.25 Million

TORONTO, Mar 05, 2009 (BUSINESS WIRE) — Bibby Financial Services recently provided a $1.25 million funding facility to an Ontario-based transportation company. The funds were used to pay out the company’s loan facility with a major Canadian chartered bank and provide it with working capital after the bank had placed it into a special loans unit due to the company’s losses. Bibby Financial Services was able to work with those bankers to complete the transaction and provide the client with the cash it needed to continue to operate, meet its obligations and manage its growth.

“It is important now more than ever that Canadian businesses receive the financial resources they need to continue to grow,” said Kevin Westfall, VP Operations, Bibby Financial Services. “As a financier that focuses on providing working capital for small to medium sized businesses we give our clients access to the funding facilities they need to seize the moment and take advantage of the many business opportunities that remain in play.”

Bibby Financial Services is a worldwide market leading specialist of business cash flow solutions to small and medium-sized enterprises. Its product portfolio includes receivable finance, factoring, export finance, purchase order finance and specialist solutions for staffing and trucking sectors. Its North American offices are located in Toronto, Atlanta, Chicago, Dallas, Houston, Los Angeles, Nashville, Phoenix, and West Palm Beach, as well as 27 other countries around the world. Bibby Financial Services is a subsidiary of The Bibby Line Group, a 200 year-old privately held company based in the United Kingdom, that provides business-to business services to a variety of industries including shipping, distribution, offshore oil field services, financial services, retail and employment law.

For more information on Bibby Financial Services, visit: www.bibbyusa.com  

Managing the Factoring Advance Rate

Many companies struggle over how to manage their factoring advance rate when in reality it is pretty basic.

Let’s say that you begin factoring in January. If you factor $100,000 in accounts receivable Read more

Overcoming Cost Objections to Factoring

We recently received this query from a factoring investor subscriber:

“In the past, prospective clients complained about factoring costs being very expensive. How do we overcome this objection?”

There are several ways to address the cost question as explained here by Mike Ponomarew. Read more

Monterey Leads the Way with Consumer Finance

With Consumer Financing and Debt Recovery hot topics on every business owners mind right now, FactoringInvestor (FI) caught up with Scott Little (SL) from Monterey Financial to fill us in on how they are helping businesses through these tough economic conditions. Read more

2009 Factoring Conference

Looking for in-depth information on factoring account receivables? The International Factoring Association (IFA) is holding their 15th annual factoring conference April 22-25, 2009, at JW Marriott Grande Lakes in Orlando FL.

This 4 day conference is dedicated to banks, finance companies, and factoring professionals offering financing through factoring. Here are a few of the scheduled sessions that caught my eye:

• Funding Your Factoring Operation
• Tricks of the Trade for Entrepreneurial Factors
• Internet Marketing
• Factoring 101
• Economic Projections affecting the Factoring Industry
• Factoring Around the World
• Small Factors Workshop

The cost to register for the conference is $995 (plus an additional $50 for non IFA members).   If you want to take advantage of the information without the travel and attendance costs IFA usually offers an audio CD.   The CD from last year’s 2008 conference is being offered for just $100 plus many of the speaker handouts can be downloaded in PDF format at no cost!

Visit IFA online  for more information on the factoring conference for financing invoices and accounts receivable.