Take advantage of these…

Free Tools to Grow Your Factoring Business Online!

1. Google Places Page for Factoring

Believe it or not Google is providing a free web page for local businesses through their Google Places Pages. This allows a business to be found on Google Maps and also helps ranking for local search results.

Visit Google Places and click on the link for “Get Your Business Found on Google”. Follow the instructions for claiming your site. If your business is not currently listed it will walk you through adding the business.

Google then sends a confirmation letter to your physical address to verify the party claiming the business is really the owner (that is a good thing). The letter will have a confirmation code you’ll need to go back and input later. Once your business is verified you can optimize the page with photos, videos, keywords, services offered, and a link to your company website.

 2. WordPress Platform

If you think blogs are just for sharing what you had for lunch…then you haven’t been on Facebook.

On a more serious note, the blog has matured and it provides a cost effective way to build an Internet site. WordPress makes it easy and free to use their open platform. Check out some of the impressive business sites that have been built in their WP showcase gallery.

Just one word of caution. While you can set up a free blog hosted on their site, you are better off using the free WP software to install under your own domain name and hosting account. For about $10 to register your domain at GoDaddy and $9 a month hosting fees at HostGator, you can now have a professional looking site with your own URL. That means your web address will be www.yourcompanyname.com and not www.yourcompanyname.wordpress.com

3. Keyword Research Tool

Wondering just what words and phrases people are using online to find factoring help? The Google Keyword Tool will tell you exactly how many people search for a certain phrase along with other related phrases. This knowledge will help optimize your company website and marketing materials so they can be found by the Internet search engines.

4. Linked In

Want to network with over 100 million business professionals? Linkedin provides a free professional profile that helps you manage your online identity. You can also network with specific groups like business owners or factoring companies. There are over 50 groups on Linked in that are related to factoring.

 5. Factoring Company Sites

I’m always impressed with the amount of free factoring broker training some of the factoring companies make available online. Here are just a few of the ones to check out:

6 Common Factoring Objections and How to Answer

Factoring News Quarterly Magazine from IFA

Old School Factoring Broker Tips That Still Work in Today’s World

Find hundreds more with a simple online search or get our top picks in the Factoring Company Directory. Want to receive the latest in factoring news first? Set your profile in Google Alerts (yes that Goliath again) to receive an automatic email notification whenever a new factoring article is published online.

So what are you waiting for? Start using these free tools to boost your factoring broker business online!

How Groupon makes Factoring Invoices look downright cheap for small business financing.

As consumers we love getting our Groupon! Who doesn’t want a 50% or better discount?

Groupon delivers coupon deals straight to your email in box. Anything from skydiving to liposuction, nachos to nighties, and burgers to basket weaving. It catapulted the success of Groupon, but is it really a good deal for business owners?

I just finished reading a business advocate article that compared the popular daily deals to a very expensive loan aka loan sharking. At first it seemed a bit harsh – until you start penciling out the numbers.

Crunching the Daily Deal Numbers

The lure or sales pitch of daily deals like Groupon is… marketing with no upfront payment!

This is especially appealing to cash strapped business owners wanting more customers. However it can be a very expensive proposition. Generally the numbers break down as:

• 50% Discount to customer
• 25% Fee to deal provider
• 25% Net to business owner

On top of that the business owner has to wait to get their portion, in installments, over time. The arrangement will differ by agreement but a common example was 1/3rd in 5 days followed by 1/3rd in 30 days and the balance within 60 days. So on $100,000 of sales it would be:

$100,000

-$50,000 Discount

-$25,000 Fees

=$25,000 Received by Business Owner

(33% or $8,333 immediate advance with balance paid out over 60 days)

In effect the business owner is getting an advance on future cash flow.

Comparing Factoring Fees

Small businesses that need to improve cash flow will also turn to factoring invoices. Again this varies by arrangement but a typical break down would be:

$100,000 Accounts Receivable

-$5,000 Factoring Fees (Averages 2-5%)

=$95,000 Received by Business Owner

(80% or $80,000 immediate advance with the balance less fees received when the invoice is paid in full by debtor).

Factoring vs Groupon

Now Groupon isn’t really factoring nor is it a loan. Plus factoring offers advances on business-to-business receivables and not business-to-consumer. But it is interesting to see that factoring fees look pretty attractive when compared to other options available to cash strapped business owners.

If you’d like to read the entire article on the daily deals subject (it was part of a series) you can find it at: http://techcrunch.com/2011/06/13/why-groupon-is-poised-for-collapse/

For more information on factoring fees and factoring companies read:

Accounts Receivable Factoring Examples

Comparing Factoring Companies

How I Run My One Person Factoring Business

Improve your chances for approval by keeping four qualifiers in mind when courting receivable financing:

1) What’s Your Type?

Factoring firms tend to specialize in certain types of invoices. They have fine-tuned their systems to fit a particular niche of the industry. If their specialty is medical factoring then they might not be into transportation factoring.

That’s why the first round of qualifying questions will include:

“What industry does the business work in? What are the goods or services they provide?”

While some companies offer funding on a variety of invoice types it pays to know any preferences upfront to avoid turndowns.

2) Size Matters

The size of a transaction matters to the factoring company. Make sure you know,

“What is the average monthly invoice volume and desired credit facility?”

Larger companies might require a minimum volume of $50,000 per month. If that’s the case then it’s better to send the smaller deals to a small business factoring specialist.

3) The Company They Keep

Good news! The credit worthiness of the business is not the primary concern. With invoice funding new businesses and other companies deemed “unbankable” are able to access working capital.

That means the main focus is shifted to the quality of the customer paying on the invoice, leading funders to ask:

“Who are the customers and how long do they take to pay?”

A factoring company generally likes to see customers or debtors paying on invoices in 30 days, although some will accept 60 to 90 days. They will look to the credit of the customer and ask for an accounts receivable aging report. If the risk of timely payment seems too great they could decline funding invoices owed by a particular customer or altogether.

4) Let’s Be Exclusive

Factors provide working capital with an advance on invoices. They need to know they are first in line to receive payment on the account receivables purchased. They’ll want to know,

“Has the business obtained prior financing with another company?”

They are trying to determine if existing claims have been filed against the receivables, making a lien search a standard part of underwriting. If it reveals there is already a UCC-1 Financing Statement of record the factoring company will want it terminated or subordinated by the creditor.

It pays to be prepared. Whether business owner or factoring broker be sure to know the answers to these questions. Then do your homework so the funding request goes to an investor that fits the deal. It will save you and the factoring company time, frustration, and rejection!

Oil Spill Workers © BP p.l.c

As a staffing company hires, trains, and pays workers they create invoices in need of payment. That can mean more cash going out than coming in, creating a cash flow crunch during a credit crisis.

Staffing companies in need of payroll funding have historically benefited from factoring invoices. The people they hire to send out on jobs are usually paid every week. On the flip side, it can take their business clients an average of 3-8 weeks to remit payment on the staffing invoices.

It’s easy to see how this creates a cash flow deficit, especially when the staffing company grows quickly to meet market demand. One solution is an immediate advance on the invoices, ranging from 80-90% depending on the staffing factoring company.

When the invoices are paid the factor deducts their fee and remits the balance to the staffing company.

Payroll funding is often available with or without the back office services related to payroll processing, taxes, and invoice creation.

One company meeting the payroll funding demand is Sterling National Bank. Earlier this month they announced making $100 million available to help fund Gulf Coast staffing companies providing workers for the clean-up efforts.

“We know the staffing industry inside and out and are fully prepared to help these companies and communities at a time of extraordinary distress,” said Allen Gershlak, Senior Vice President. (Source: Sterling Press Release – July 1, 2010 – http://www.sterlingresourcefunding.com/gulfcoast.html)

With headquarters in New York City, funding is provided through payroll financing group Sterling Resource Funding. Dale Busbee, Southeast Regional Representative, is based in Slidell, Louisiana and can be reached at 985-640-2782.

Busbee commented, “The response to this catastrophe by people in the Gulf region communities has been swift and truly inspiring. The staffing firms that are being called upon to provide an important part of the clean-up efforts are determined to not let credit limitations deter them from what needs to be done.”

Companies across the gulf coast are being awarded contracts to aid in the clean-up efforts. Invoices are being created for everything from absorbants and booms to staffing and shovels.

Oil Spill Cleanup Image © BP p.l.c

But like most businesses, it can take 30 or more days to receive payment on outstanding invoices. In need of funds to help meet the growing demand, business owners are turning to an age-old financing solution – account receivables financing.

The search for factoring companies

willing to fund these deals has been a hot topic in the networking forums. Several companies have expressed a willingness to consider receivables with BP as the debtor, including:

Transfac Capital at www.transfac.com or by phone at 800-458-6056 x118

ETG Capital at www.etg-capital.com or by phone at 212-300-6791

Marketing for clients in need of ar funding for cleanup supplies and services can yield good results for savvy factoring brokers.

Just realize that most funders are likely to require a direct obligation from BP along with other protective underwriting criteria. This is a developing niche so modifications to funding parameters are highly subjective to change as the story continues to unfold.

There is no doubt everyone wants to see an end in sight for the gulf disaster. And if the cash flow business can can aid the efforts, then all the better!

If you are like most factoring brokers you may wonder:

“Which marketing methods are most effective?”

“Which are a waste of time and money?”

“Which should I use?”

“Which do you use?”

After hearing these questions time and again, Jeff Callender decided to deliver a hands-on guide of marketing methods that produce results.

But he didn’t just stop at using his own proven system for finding factoring clients. He also interviewed 7 other successful small factors and brokers on the marketing methods that worked (and sometimes didn’t work) for their cash flow business.

I recently reread Marketing Tools for Small Factors and Consultants and was impressed all over again by the candor and ready to implement ideas.

One of the best sections is the summary of over 45 marketing methods that provides a detailed ranking system by:

1. effectiveness, and
2. cost

This handy chart lets you see at a glance that networking was a top producer but direct mail was costly with minimal results. It then goes into detail with the best places to network for factoring clients along with sample scripts and handouts.

Click Here to Grab Your eBook Copy!

Without a doubt, Marketing Tools for Small Factors and Consultants, by Jeff Callender, is one of the best marketing books out there for factoring brokers.

But hey, don’t take my word for it. Here are just a few of the things people are saying about it:

“If you want to know which marketing methods are the most effective and which methods are a waste of time and money, read this book.” – Richard Koroki, Torrance CA

“I loved the pictures of the business materials and articles. The specific examples were very helpful to a visual person like me.” – Rebecca Álvarez, Tulsa OK

“Attention grabbing and attention holding. Chock full of tips! Without this book, one could spend hundreds or thousands fumbling around trying to figure it all out. All the reader has to do is take action with the information and run with it.” – David Martin, Spring Hill FL

“Insightful, though-provoking and packed with information. The easy-to-implement yet low cost marketing tips are invaluable.” – Derrick Collins, Lanham MD

If you already own a copy then please, take the time to read it all over again and implement at least one new idea for finding cash flow business.

Don’t already have this gem in your library?

Grab your copy here for only $13.95.

Ordering is fast and simple. You’ll receive instant download access to the eBook and it’s backed by our 100% satisfaction guarantee.

This online networking platform is doing for business what Facebook did for friends and family.

LinkedIn offers free membership for networking with over 70 million members in 200 countries.  But even better, you can specify the type of professional groups you want to actively follow.

The factoring industry alone has over 50 Groups focused on this specialized segment of commercial financing.

If you are a factoring broker be sure to check out these most active groups:

• Commercial Finance Association
• Factoring Professionals (FP Americas and FP Europe)
• Trade Finance, Factoring and Forfaiting Professionals
• The Global Commercial Finance Network
• FactorNet Lead Referral and Networking Group
• International Factoring Association
• De Lage Landen Member Community
• Asset Based Finance Association LTD
• International Factors Group
• National Funding Association
• Commercial Finance Today
• Factoring Brokers

Recent discussions ranged from where to find accounts receivable funders for dentists to the potential impact of the Wall Street Reform Act on the factoring business.

So what are you waiting for?

Leave the embarrassing photos and weekend updates to Facebook and start using LinkedIn to network with factoring professionals that can help grow your business.

It’s actually pretty simple to keep the conversation rolling if you use these seven questions.

What type of business are you in?

How did you get started?

How long have you been doing this?

What do you like most about your business?

What are the biggest challenges in growing your business?

Do you ever have to wait for customers to pay you?

Would it be helpful to have access to cash without debt, whenever you wanted?

Why do these questions work?

Most people, especially business owners, like to talk about what they are doing. The questions help break the ice without being threatening. They let you shine as an attentive listener, all the while gathering information and gently directing the conversation towards the factoring services you provide.

At some point there will be an opportunity to tell them about your business.

Then you can simply respond:

“I help businesses get the money they need to grow, meet payroll, or pay bills. We provide financing solutions by turning invoices and accounts receivable into cash, in as little to 24-48 hours. Please give me a call if you or anyone you know ever needs working capital without debt.”

Be sure to exchange business cards and follow up the meeting in a couple of days with a phone call, brochure, or personalized email. Even if the new contact does not need to discount invoices, they might refer other companies in need of factoring services.

Networking for factoring prospects does not have to be painful when you use these friendly questions to let the business owners do the talking!

Looking for more ways to market your factoring services?

Be sure to read Marketing Tools For Small Factors and Consultants, a compilation of the best marketing techniques shared by 7 successful factoring professionals.

MAY 4, 2010 — CENTERVILLE, Utah — AAA Factoring announced today that beginning June 1, 2010,  5% of the company profits will be donated to charities that help Haitian amputees that lost their limbs in the recent earthquake.

The company is owned and operated by Duane H. Marchant who is an amputee himself.  Duane lost his right leg after a fluke accident and several failed surgical attempts to save his leg.

AAA Factoring helps small business meet their operating expenses and immediate needs for funding through accounts receivables factoring.  More businesses are seeking alternative funding choices as banks have tightened their credit criteria, thus making it more challenging for many businesses to get traditional business loans.

“The ongoing business and financial climate combined with the recent earthquake in Haiti have created challenging circumstances for many businesses and individuals.  This is a unique time for businesses to help individuals impacted by recent events,” said Marchant, President of AAA  Factoring.

Company profits of 5% will be donated to charitable organizations that help amputees for at least the remainder of 2010 and possibly beyond.

About AAA Factoring Group:

AAA Factoring (www.aaafactoring.com) is a business factoring company that helps businesses with alternative financing solutions- nationwide.  Accounts receivable are factored to provide businesses with immediate short term cash flow to operate, sustain, and grow their business. You may contact Duane H. Marchant, President, by phone at 801-292-1220 or by email at duane@aaafactoring.com.

Well we found several “must have” factoring broker kits while researching our updates for the 2010 Factoring Directory.

And the best part is I’m going to tell you where to download two of them today for free!

At a minimum a factoring broker kit should:

1. Detail the types of accounts receivables a factor will buy
2. Outline the minimum qualifications for a business seeking invoice factoring
3. Provide the application for registering as a factoring broker

But sometimes a company goes a step further by providing that little something extra to help you succeed as a factoring consultant. They know if you find more deals, then together you can both make more money helping clients find working capital. These additional resources include:

• Where to Find Factoring Prospects and Referral Sources
• How to Answer a Business Owner’s Objections to Factoring
• Sample Marketing Brochures
• Scripts for Contacting Business Owners

So, where do you find two of the factoring broker packages that meet and exceed our expectations? Just follow these links:

http://www.hamiltongroup.net/brokers/index.html

http://www.paragonfinancial.net/toolbox.asp

These broker packages are like mini “how-to” factoring help courses for finding and developing clients.

Looking for more great resources, factoring services, and funders? Be sure to grab your copy of the new 2010 Factoring Directory.