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!

Knowing the right contacts not only makes things easier, it can make you more money.

Gain access to our personal Rolodex of experienced factoring funders that took years to develop. Work direct with knowledgeable investors, educators, and mentors.

Grab your copy of the 2010 Factoring Directory today!

Order Now for only $29.96 (25% Off the $39.95 Retail Price)

Business owners and factoring brokers will gain instant access to:

• Factoring Funding Sources (cut out the middle man)
• Invoice Buyers
• Medical Factoring Specialists
• Construction Factoring Companies
• Staffing Factoring
• Freight and Transportation Factoring
• Small Business Factoring
• Non recourse Factoring
• Preferred Transaction Types and Invoice sizes
• Broker Friendly Factoring Companies
• Master Consultants Willing to Mentor New Brokers
• Updated listings for over 60 factoring companies including  email, phone numbers, and websites (with easy one click access).

This directory alone could save you hundreds, even thousands of dollars when you go to sell an invoice or broker an accounts receivable funding deal.

Grab your copy today. Instant Download Only $29.96 (a 25% Savings off the Regular $39.95 Price)

To receive your answer, you must learn to observe the way people are communicating with each other in 2K10. You must also realize that we are living in a revolution in the way people find products, find services and choose companies to do business with.

In 2K10 practically all of us turn to the Web to research information before making a buying decision.

Am I right?

Ask yourself, “How many times over the last week did I use Google to search for some information?”

Learning to Harness the Power of the Internet and taking advantage of the Social Media rage has become main stream marketing – if you are not on it you are slowly being left behind.

Ten years ago marketing was judged by the size of your wallet. Today it is about creating reach and learning how to communicate effectively with the masses.

Note I said effectively. To be successful and grow your business, you must match the way you market your services with the way your prospects are choosing to learn about and shop for Factoring.

You may not know this but, your prospects and referral sources are hanging out at public watering holes like Facebook, LinkedIn, Twitter, YouTube, etc. Your prospects are being attracted to creative landing pages that expose and educate them about “WIIFT” or What’s In It For Them!

Blogs are quickly replacing Websites as a source for information and more and more prospects are participating in webinars vs. live appointments. Social Media creates the opportunity for you to engage with your prospect and build credibility.

People have become marketing resistant and you need to think of ways to stop interrupting your prospects and get found or attract them to you.

How??

By sharing content and giving – giving information. Educating your prospect about what you do, the services you provide and how you can help them today is what it is all about.

Direct mail is not gone but, it has to create curiosity. It has to create an opportunity for the prospect to engage and learn about “WIIFT”.

This is extremely important and I want you to think about what you are about to read…

If you understand what I am trying to tell you, you are going to be on your way to taking advantage of the Social Media revolution. Your prospects will find you if you learn to write about something worth reading, saying something that is worth listening to or doing something worth writing about.

This can be achieved by dedicating your time to learn how Harness the Power of the Internet through landing pages, social media, blogs, webinars.

Keep It Simple – Keep It Creative!

Create messages that you can produce and spread at great REACH of Speed. Go for it – it’s fun and simple!

About the Author: Michael Ponomarew brings with him more than 24 years of experience in entrepreneurship, marketing, and business management. Mike can be reached at mikep@millenniumfunding.com or by calling 888.652.8298 ext. 45.

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.

But when are these factoring commissions paid?

Last week Factoring Investor received this question from a factoring broker on the handling of referral fees that we asked Michael Ponomarew to answer for our readers. Maybe you’ve wondered the same thing.

Question: Are there are any factoring companies that pay a referral fee at the time the advance is made on the invoice or do all factoring companies wait until the invoice has been paid and the reserve released to pay the broker’s commission?

Michael Ponomarew: In answering your question, I do not know of a Factor that would pay the referral fee/consultant commissions until the customer (debtor) has paid for the invoice(s). A factoring transaction is not complete until the customer (debtor) has paid for the total value of the invoice purchased by the Factor.

It is important to know that the reserve is released pending the aging of other outstanding invoices. The release and payment of the reserve is a non-issue when it comes to paying consultant commissions or referral fees.

What typically happens is a Factor will pay commissions for the preceding month’s collections or payments of the invoices that the Factor purchased. For example, on all of the collections or payments received during the month of May the consultant would be paid their commissions during the first week of June.

Michael Ponomarew brings with him more than 24 years of experience in entrepreneurship, marketing, and factoring business management. Mike can be reached at mikep@millenniumfunding.com or by calling 888.652.8298 ext. 45.

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.

We have received a number of requests to rebroadcast the Attraction Marketing Webinar presented by Michael Ponomarew last month.

In case you missed it, the core mission of this presentation is to educate, enlighten and inspire Factoring brokers about Harnessing the Power of the Internet.

We live in a society experiencing a revolution in the way people communicate, find products, services and make decisions in Who they are going to do business with.

If you are serious about learning to do the right things and implementing a blue print to follow on How to Find, Expose and Educate your Factoring Prospect, this presentation is for you.

If you Aim at Nothing you will Hit it!

If you are not Hitting your goals, this is a can’t miss event!

Reserve your spot for next Wednesday, May 26^th at 9:00 p.m. eastern time by clicking on the link below. You will be extremely happy you did!

REGISTER HERE: https://www2.gotomeeting.com/register/210265251

Next Webinar Coming Soon…Stay Tuned!

Factoring Investor (FI) asked Duane Marchant, founder and president, to share some information on working with his company.

FI: What transactions will your company consider funding?

We handle the following receivables:

• Spot Factoring
• Manufacturers
• Temporary Employment Services
• Consulting
• Import Distributers
• Janitorial Services
• Defense Contractors
• Food
• Communications
• Government Vendors
• Computer Hardware/Software
• Professional Services, and Others.

We also partner with other factoring affiliate companies on Transportation, Construction, Medical and Other transactions.

We prefer deals $250 to $50,000 Account Receivables (AR) per month but will consider funding larger AR per month.

FI:  How did you get your start in the factoring business?

Duane Marchant:

After 25 years of professional business management experience over two public companies, I stepped down as CEO to start a private funding business in 1997 to provide alternative financing for businesses in need of working capital to sustain and grow their business.

I was first introduced to factoring by attending an “American Cash Flow Training Seminar,” in 1995.

FI:  What unique benefits does your company provide?

Our professional commitment to aggressively provide prompt client financing solutions, even when other lending institutions have said “no”.

FI:  What do you consider the best methods for finding deals?

• Strategic referral partners

• Small commercial bankers and mortgage brokers

• Writing and posting articles

• Networking on and offline

• Technological tools in cyber space

• Brokers and consultants

FI:  How do you handle commissions to cash flow brokers or consultants?

We welcome the opportunity to partner with brokers and consultants and offer competitive industry commissions.

Due to strong demand, we will be offering a “6 week Broker Factoring Taining Course” to help new brokers learn the factoring business and how to market their services more effectively.

FI:  What advice would you give to new professionals just starting out in the industry?

1.  Learn the factoring business so you can both talk the talk, and walk the walk.

2.  Establish a relationship with several factoring companies, learning their submittal requirements and establish a personal relationship with their representative. Factors are always willing to help the new professional learn and earn.

3.  Recognize this is not a get rich quick program and the new professional must have staying power. Remember you are building a business which takes time and consistent effort.

4.  Get mentoring and training from successful Master Brokers and learn from their experience.

5.  Don’t get sucked in by every new bell and whistle and don’t spend thousands of dollars. Most advise and training is free or minimal dollars.

FI:  What is the most common business mistake you see people make?

* Not having a written marketing plan.

* Failing to recognize the necessity of CONTINUOUS MARKETING, professionally, effectively, affordably, and consistently.

* Too many think of marketing their factoring services as an event, rather than as a constant repeated process.

FI:  Given the current economy, have you made any changes in the way you transact business?

We believe technology advancements in our economy have permanently changed the marketing arena.

The marketing audience is splintered among many different online media outlets. We are using online technology and social media as a significant part of our marketing efforts to reach a broader customer base, also to improve our customer service.

Bank financing is still very constricted and many businesses are seeking alternative financing. As a result, we have been busier factoring accounts receivable, than at any time in our 13 year history.

The federal government policy decisions and controls recently instigated may have changed bank financing for the unforeseeable future… the Factoring Industry is the beneficiary.

FI:  Where can people contact you to obtain more information?

AAA Factoring Group

364 West 1500 North, Suite 100

Centerville, Utah 84014

Phone: 801-292-1220

Email: duane@aaafactoring.com

Website:  www.aaafactoring.com

FI:  Is there anything else you would like to share with our readers?

We’d like to share a recent press release on our efforts in helping Haitian Amputees and Small Businesses Get A Leg Up From AAA Factoring Group.

FI Summary: Helping businesses raise cash through factoring account receivables is one of many cash flow categories where consultants can earn commissions by referring transactions to funding sources.  For a full listing of factoring companies please refer to the 2010 Directory of Factoring Companies and Service Providers.

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.