Best of How To Start A Factoring Business

Over the past few years I’ve written several articles about starting your own factoring business. Much of the information referred to resources, capital, due diligence and general topics related to the asset based lending industry. To this day I am still amazed over the response we have received on this topic. Today alone I’ve received calls from Europe, Asia and the U.S. about factoring. Since the interest level on this topic has remained so high I felt that it would be a good idea to do a "Best of How To Start A Factoring Business” compiled from previous articles and questions we have received over the last few years. 1. Should I begin as a factoring agent or broker rather than starting a direct funding company? First, understand … [Read more...]

Choosing The Right Factoring Partners

For a factoring broker, selecting the right factoring companies to work with can spell the difference between being successful in the business – and never closing many deals. Yet, most brokers don’t have a well thought out process to choose their factoring partners. Instead, they chose their factors based on the broker compensation package or how well they clicked with their broker representative. While these two criteria are important – they are among the least important criteria to select a factor. Actually, if you select a factor just based on compensation, you could end up losing money. Let me tell you a story. … [Read more...]

How to Optimize and Increase Your Factoring Brokerage Revenues

Most factoring brokers are consummate sales professionals who spend their time talking to small business owners and trying to generate leads. Brokerages come in all varieties. Some brokers focus on a single leads source, such as referrals, and work that source for all their leads. Other brokers run more complex businesses that focus on many sales channels at the same time. An example of the … [Read more...]

The Financial Professional’s Vocabulary

It's time for factoring professionals to consider, "What's in your vocabulary?" All of us get caught up in linguistic shorthand that apparently works well between financial professionals in the factoring business but very often becomes a usual and customary part of our parlance. When we talk we have choices of words, phrases and nuances that are available at that time. It is a common mistake (in my view) to use the same choices for all listeners. It is with this in mind that we look at how we use words. Factoring Financial Transactions (Not Deals) My first complaint is with the term “deal.” If one looks through my articles, underwriting notes and comments you can see that I noticeably avoid that word. … [Read more...]

How Factoring Brokers Earn Fees

With numerous factoring courses and factoring books available online, many people wonder just how factoring brokers earn their fees. While factoring commissions are paid in a variety or ways, there are some standards to start with. … [Read more...]

Could You Tell a Client They Don’t Need Factoring Help?

I witnessed an odd exchange of dialogue the other day on the Internet. It would have been humorous except neither of the cash flow consultants came to the right decision – over a long period of opportunity. The “Dilemma” The exchange started with a simple post from a factoring broker that had a “dilemma” with a new soon-to-be client. In going over the client’s information, the consultant discovered that the client really did not need factoring help. He had two other alternatives that were clearly better choices for the client , with no additional risk. The consultant was concerned how he was going to keep is his client focused on factoring so he could get the deal. “Any feedback would be helpful.” Enter the “Expert” The … [Read more...]

Delinquent Debt How to Make Good Money With Bad Debt!

For better or worse, the United States economy runs on debt. In fact consumer credit alone totals over 2.4 trillion dollars (Federal Reserve August 2009 statistical release). That doesn't even include the big-ticket items like mortgages, commercial debt, and business loans! Now think about the state of the economy and the never ending reports on delinquencies, slow pays, and bad debt. If you are looking for the opportunity in this dismal economy.... think delinquent debt! Sound crazy? Think it through: … [Read more...]

Investor Spotlight: It’s Not Just Construction Factoring with Quantum Corporate 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 Howard Chernin (HC) to fill us in on the accounts receivable funding business. … [Read more...]

Marketing – If the Phone Does Not Ring, Nothing Else Matters

No matter what industry you are in, it is easy to get bogged down with the little things.   Some people are so focused on their business name, business cards, stationary, website, and office furniture, they forget the biggest goal;   Getting the Phone to Ring!   … [Read more...]