Factoring News, Trainings, Conferences, and Bibby Updates
April 30, 2012 by Factoring Investor · Leave a Comment
Here’s a look at the latest factoring news including upcoming trainings, conferences, and updates from Bibby Financial.
Factoring Conferences
The International Factoring Association (IFA) finished up their 2012 conference April 18-21 in Huntington Beach, CA. If you missed the event keep an eye on the factoring.org website for the the release of the conference cds.
They have also announced the IFA 2013 Factoring Conference April 24-27, 2013 at the Fontanebleau Hotel in Miami Beach Florida. Registration will be available mid October.
Factoring Trainings
There are several factoring trainings still available for 2012 from IFA. One of these, The Small Factors Meeting, is moderated by Jeff Callender President of Dash Point Financial. Jeff is also the author of How I Run My One Man Factoring Company and the Small Factor eBook Series. Starting as a factoring broker in 1994, Jeff now owns his own factoring company and shares his knowledge with others interested in the factoring business as a broker or investor.
This training is being held October 25-26th in Las Vegas NV and will also be moderated by Ryan Jaskiewicz, the founder and President of 12five Capital. The workshop is designed to give small factors a forum to discuss and learn with emphasis on round table discussion, networking and education.
Factoring News From Bibby Financial
Bibby Financial Services has announced several news worthy items in April. The following excerpts were taken from the formal press releases. Please visit the Bibby Financial website to read the full version of the articles.
Bibby Financial Services Provides a Group of Businesses With $3 Million Factoring Facility
TORONTO — (Marketwire) — 04/10/2012 — Bibby Financial Services said today that it has funded an Ontario, Canada-based temporary staffing company that provides staffing solutions across the light industrial and financial services sectors.
The company already has two operating units that are current clients of Bibby Financial Services. This latest addition will use the increased cash flow to stay ahead of payroll expenses — a major concern for any staffing firm.
“Factoring is a smart choice for staffing companies due the pressure of meeting weekly or monthly payrolls,” said Bob Lall, Managing Director, Bibby Financial Services (Canada). “A staffing company might have 30-day terms for payment while its temporary employees expect weekly payroll checks. Factoring bridges the gap between invoicing and receiving payments. With increased cash flow and a factor following up on invoices for its clients, a staffing company has the time and working capital it needs to take on new business.”
They have also announced a new promotion in Canada.
Bibby Financial Services Names Hardy Kang Canadian Head of Sales
TORONTO — (Marketwire) — 04/16/2012 — Bibby Financial Services announced today Hardy Kang has been promoted to Head of Sales, Canada. In his new role, Kang will develop and lead the Canadian region’s sales team while continuing to take on new business and provide small and medium-sized companies with flexible cash flow solutions. He will report directly to Bob Lall, Managing Director.
Bibby Financial is a worldwide market leader in business cash flow solutions to small and medium-sized companies. With offices in eight North American cities and 14 countries around the world, its product portfolio includes accounts receivables finance, factoring, export finance, purchase order finance, and specialist solutions for the staffing and trucking sectors. They are also one of the factors listed in the 2012 Factoring Company Directory.
Small Business Turns to Alternative Financing
February 27, 2012 by Factoring Investor · Leave a Comment
While the demand for small business loans is up, a recent Federal Reserve survey shows the majority of banks are keeping credit tight. This is causing small business owners to turn to alternative financing options. The factoring industry is well-versed in how this need is fueling demand.
Two recent articles in CNN Money covered the ongoing small business financing challenges and highlighted one possible solution…
Merchant Card Advances Read more
Factoring News: Sears Reaches Agreement with Factors
January 23, 2012 by Factoring Investor · 1 Comment
The Wall Street Journal released some factoring news showing how working with Factors can help a company win big…even on Wall Street.
NEW YORK (Dow Jones)–Sears Holdings Corp. (SHLD) shares soared Friday as the retailer was said to be making the rounds to reassure its financing partners that it has the wherewithal and the desire to meet its obligations.
Shares were up 13% to $49.04 in recent afternoon trading, and have now gained 57% this month as positives from new financial plans with vendors mixed with talk the company could be taken over by its majority owner, Edward Lampert.
A Lampert representative didn’t immediately return a call for comment.
The retailer on Friday was said to have talked with a number of its larger factors about a new financial approach after talking first with CIT Group Inc. (CIT), a factor that pulled its funding last week amid uncertainties about Sears’s financial condition. Factors are financing firms that buy receivables from suppliers and collect the money from retailers once the goods are sold.
CIT was reported to have reinstated its financing agreement this week.
Representatives from Sears declined to comment. A CIT spokesman said the company does not comment on customers.
“Sears has come up with a financial vehicle to make factors more comfortable,” said an executive familiar with the arrangement. “There is a lot of renewed confidence in their ability to satisfy their vendors.” The executive declined to elaborate on the arrangement.
Another person close to the matter said an arrangement has been “placed on the table” and it was likely it would soon be put into effect.
Sears had tried to reassure suppliers it has adequate liquidity to operate its business, but that hasn’t done much to allay financiers’ fears, the suppliers said.
The factors were “worried about our financial exposure and that can’t be satisfied by conversations about liquidity,” said an executive at one New York-based factor. “We want shortened payment terms, more transparency into their finances, to know the value of their assets.”
Another executive of a factoring firm said he also had asked Sears for better payment terms and access to more information, but the company wouldn’t agree.
Reassuring vendors and their financial backers will be key to Sears’s future, analysts said.
-By Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com. -Ann Zimmerman contributed to this article.
Read the article at The Wall Street Journal.
A Year End Thank You From Factoring Company Oxygen Funding
December 11, 2011 by Don DAmbrosio · 2 Comments
It’s that time of year when many of us are looking forward to the holidays where we get to enjoy time with family and friends and attend holiday parties. Hopefully, many of us will be able to get away from the office for a few days to recharge our batteries and get ready for the New Year.
Typically, when I write these monthly articles for Factoring Investor, the discussion focuses on the factoring industry and ways for you to market and manage your business.
Last month’s publication, “A How to Guide for Factoring Brokers”
was a smashing success with requests for the guide from factoring brokers from all parts of the world.
We also received excellent feedback on our social media marketing for the factoring business article that ran last summer. For this year end piece I’d like to keep it simple and say thank you to the people that helped us in 2011:
- My Family – Thank you for your support and strength for without you none of this would have been possible. Thank you believing in a dream but more importantly, believing in me.
- The Oxygen Funding Team – Thank you for your dedication and for always striving to be the best you can be. No matter what the challenge was, you were always willing to step up and get the job done with no questions asked.
- Our Factoring Clients – Thank you for making our company the thriving success it is today. Double thanks for making our jobs a pleasant experience every day we come to work.
- Our Friends at Factoring Investor – A special thank you to Tracy and her team at Factoring Investor for allowing me to do this monthly piece that gives me the opportunity to spout whatever comes to mind with the hope they will find it useful and informative for their audience.
Finally, I am honored and grateful to you, the readers, who so often call and email me with great feedback. Whether it’s a comment on a past article or a suggestion for a future piece, I can always count on you to shed some additional insight on topics that are so often overlooked on my part.
Best wishes to all for a healthy and prosperous New Year.
Don D’Ambrosio is the president of Oxygen Funding, Inc., an invoice factoring company located in Lake Forest, California. For more information, he can be reached at don.dambrosio@oxygenfunding.com or you can visit his company’s website at www.oxygenfunding.com
Medical Staffing Invoice Funding – Tips For Managing Customer Fears
December 5, 2011 by Philip Cohen · 1 Comment
Many medical staffing business owners worry that their customers (hospitals, nursing homes, medical clinics, etc.) will misinterpret their decision to factor as a signal of financial instability. In reality, deciding to get medical staffing invoice funding help is an encouraging indication that your medical staffing business is stable, rapidly growing, and in high demand.
To help alleviate your concerns and to educate your customers about medical staffing invoice funding, consider the following: Read more
Consumers Should Expect Higher Prices This Holiday
November 28, 2011 by Fred Rewey · Leave a Comment
At the end of August, Apparel published the following “warning” if you will.
With costs going up, consumers were going to have to pay more - painting a potentially gloomy picture for holiday spending. But did this actually happen and what about the cost of factoring during this period?
(8/31/11 Source: Apparel) – A new survey of consumer goods manufacturers and importers shows that the dual trends of weak inventory sales and rising prices paint a dark picture for the upcoming holiday season. As of July 31, 2011, during which time most holiday orders are placed:
- 83 percent expect prices of consumer goods to rise this holiday season, with one-third saying prices could rise as much as 10-15 percent
- To deal with the rising cost of goods and the gloomy economic outlook, 89.4 percent expect retailers to rely heavily on discounting to move merchandise
- 64 percent of manufacturers and importers reported that retail orders are the same, or less, as compared to last year (2010)
- 30 percent of respondents reported that the increased costs to manufacture and ship goods will be passed along to consumers as compared to only 20 percent of respondents passing increased costs along to the consumer six months ago
“Inflation is coming and the era when retailers and manufacturers absorb price increases to protect consumers is over. Our manufacturing clients are telling us that prices for clothing, bedding and other soft goods will rise this holiday season. However, all hope is not lost, as one-third of those surveyed believe that despite current market challenges, retailers will increase inventories this holiday season,” said Andrew Tananbaum, executive chairman of Capital Business Credit.Additional findings of note:
- Nearly three-fourths (73 percent) of respondents expect sales this holiday season to be the same, or weaker, than last year
- 60.5 percent believe that an increase in the cost of goods will be spread across consumers, retailers and importers
- Half (53 percent) cited that due to the increase in raw materials and logistics costs, retailers are asking for longer payment terms during the holidays indicating that suppliers are forced to become more flexible with respect to payments and contract terms
These changes will affect margins across the board, as an overwhelming 95 percent of respondents indicated that their margins would be affected in some way.The Global Retail Manufacturers and Importers Survey, conducted by Capital Business Credit LLC (CBC) (www.capitalbusinesscredit.com), a global integrated financial products and services company that serves the retail sector, surveyed 80 manufacturers and importers in the apparel, housewares, home furnishings, fashion accessories and furniture industries, who manufacture some, if not all, of their products in China, India, Vietnam, Bangladesh and Pakistan. The survey was conducted the week of Aug. 1, 2011.CottonAlmost all (95 percent) of respondents saw an increase in the cost of raw materials over the last 12 months. To combat the increased cost of raw materials, 33 percent will be replacing some of the cotton content in their products with rayon (60 percent) or Lycra (40 percent). More than a quarter (26.7 percent) of those who have high-cotton content products will vary the cut or design of their products to use fewer raw materials. Respondents also noted that cotton prices will directly affect consumer prices this holiday season.LaborApproximately 44 percent of survey respondents plan to move some or all of their manufacturing out of China due to the increased cost of labor. Almost three-fourths (71.4 percent) of those respondents are considering relocating some of their production to Vietnam.LogisticsThe CBC survey also identified that the increased cost of logistics – due in large part to the rising cost of oil – is a major cost concern (92.2 percent) for importers and manufacturers. Almost two-thirds (66 percent) of respondents said that logistics costs have increased by more than five percent in the last 12 months with nearly 58.3 percent of respondents citing an increase of five percent or more due to the current cost of oil.“The rising costs of raw materials, labor and logistics only magnifies the existing problems facing manufacturers, importers and retailers. On a bright note, looking forward to the Spring season, we anticipate prices to decrease at retail, due to forward looking data on the decline in cotton prices,” said Tananbaum.
The good news is that consumer shopping on Black Friday last week surpassed all records with sales up over 6% (Source MSN.com).
So even if there was a slight increase in production cost (that may not have been passed on to the consumer) the volume should make up for any factoring costs incurred by companies selling invoices.
In the end, consumers were sick and tired of staying on the sidelines (spending wise) and this gave business a good hit at the end of 2011.
How Medical Supplies Companies Benefit From Factoring
November 1, 2011 by Philip Cohen · Leave a Comment
Now more than ever, medical supplies companies are looking for alternative financing sources.
Banks are not approving loans like they used to and recurring cash flow challenges for medical supplies companies are not going away.
Medical supplies factoring has been evaluated in the past, but this alternative financing option is becoming a popular and convenient solution to cash flow problems. Read more
Factoring News: Financing is Tight Reveals Forbes-CIT Retail Study
October 24, 2011 by Factoring Investor · 1 Comment
Nearly 50% of Retail Executives say their ability to secure financing has not improved or has worsened in the past year, according to a recent study released by CIT Group and Forbes Insights.
As banks continue to restrict business lending the need for factoring invoices remains strong.
Overall the study shows retailers generally pessimistic about the U.S. economy with 76% expecting the financial crisis to extend into 2012 or beyond.
Here are some additional results from the news wire that may also impact your factoring business.
Press Release: October 19, 2011 08:30 AM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–Middle market retail executives are bearish on a short-term U.S. economic recovery, even though many expect their own companies to improve faster than the industry, according to the third annual Retail Finance Outlook study released by CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies. While a majority of retail executives expect business to improve in the coming months, they remain cautious when it comes to increasing staff levels, building inventory, and assessing the availability of credit—especially for their customers.
These are some of the findings detailed in the research study, “Retail Finance Outlook 2011” (cit.com/retailoutlook2011), which was prepared in association with Forbes Insights. The study gathered the views of more than 100 middle market retail executives to assess their opinions on the U.S. economy and retail financing, as well as their views concerning prospects for their own companies and the retail industry as a whole.
“Retail executives maintain a sense of optimism about their own business growth prospects, even while they continue to sour on the idea of a quick recovery of the U.S. economy,” said Burt Feinberg, Group Head of CIT Commercial & Industrial. “This study highlights some of the key factors affecting the retail sector, including the price-conscious consumer, waning consumer confidence, the increased influence of social media, rising commodity costs, and consumer access to credit.”
Key Findings from the Study:
- NO END IN SIGHT TO FINANCIAL CRISIS: Retail executives remain pessimistic about the U.S. economy, with three-quarters expecting the crisis to extend into 2012 or beyond. A return to growth in the financial markets is also seen as taking some time, as 58% of retail executives don’t see growth resuming until 2013 or later.
- FUTURE SALES GROWTH TO INCREASE: Retail executives remain cautiously optimistic about their outlook for the coming 12 months. Nearly 60% predict sales will either grow (51%) or grow significantly (8%), with just 9% of executives predicting a sales decline in the next 12 months. Compared with the Retail Finance Outlook 2010 study, retailer optimism has been tempered. Last year, 22% of executives foresaw significant growth, and 68% predicted overall expected growth. The number of executives who predicted any decline in sales was just 2% in 2010.
- CAUTIOUS OPTIMISM FOR THE HOLIDAY SEASON: Nearly three-quarters of executives see sales improving slightly (38%) or staying about the same (36%) as last year for the overall season. Sensing that price-conscious consumers will be looking for bargains this year, 37% of executives predict an increase in last-minute shopping, while 38% expect post-Christmas shopping days to be stronger. On a related note, nearly half of executives believe both broad discounting and the price of fuel will be driving factors in consumers’ decision to spend.
- NEW MEDIA MARKETING LEADING GROWTH OPPORTUNITIES: Nearly six in ten executives report their companies are shifting marketing dollars away from old media toward new media, such as social media campaigns. As part of that shift, 68% of respondents report increases in marketing and deals through social media channels, including Facebook and Twitter. In addition, 63% report that their Web sales are growing (28%) or growing faster than other channels (35%).
- SHIFT TO NEW MEDIA WILL CONTINUE: In a sign that this trend will continue, some 58% of retail executives believe they need to improve their new media marketing strategies, while a further 7% characterize their companies as “late starters” in the new media game.
- HEALTH CARE COSTS AND REGULATIONS WIDELY SEEN AS NEGATIVE: More than any other topic presented, health care costs and regulations appear to weigh most heavily on the minds of retail executives. Over the next 12 months, nearly two-thirds of executives believe changes in health care costs and regulations will be negative (38%) or strongly negative (25%) for their businesses. Just 6% of executives view them as positive for their businesses.
- RETAIL FINANCING AVAILABILTY: Nearly half of retail executives say their ability to secure financing has not improved or has worsened in the past year. For the year ahead, half of executives expect the availability of financing to be stable, while 30% expect availability to improve and only 10% expect it to worsen.
- SKEPTICISM AROUND CONSUMER ACCESS TO CREDIT: Retail executives expressed concern about consumers’ ability to finance their own purchases and household costs. When looking ahead to the next 12 months, a third of retailers see consumer access to credit worsening and 22% see it improving, while the remaining 44% expect little change. Interestingly, 22% of executives expect to increase the lines of credit they can extend to consumers in the coming year as well. A smaller percentage (17%) foresees restricting credit to their customers.
- COMMODITY COSTS CAUSING CONCERN: More than half of retail executives see rising energy costs as being negative (47%) or strongly negative (8%) for business in the 12 months ahead. When asked about raw materials costs, 59% of executives said they feel either negative (48%) or strongly negative (11%) about non-energy commodity costs in the coming year.
Source: Press Release and full copy of the Retail Finance Outlook Study are available at: http://www.cit.com/media-room/press-releases/index.htm
When business owners need access to working capital without bank loans they can turn to accounts receivable factoring.
To learn more about the factoring business check out the Small Factor Series by Jeff Callender of Dash Point Financial in the Factoring Investor training center.
Allied Health Staffing Factoring – A Financing Solution For Expanding Companies
September 5, 2011 by Philip Cohen · Leave a Comment
The growing nurse shortage has been in the headlines for years, but there is another very real shortage that’s also affecting our nation…the allied health personnel shortage.
Defined as clinical healthcare professionals that assist physicians and nurses, allied health personnel are an important part of the healthcare system. Hospitals, nursing homes and clinics are beginning to feel the stress of the aging Read more
Healthcare Staffing Funding – Bank Loan or Accounts Receivable Factoring?
August 1, 2011 by Philip Cohen · 1 Comment
When prospective healthcare staffing businesses compare factoring fees to bank lending rates, factoring almost always seems more expensive.
Oftentimes, factoring prospects annualize the percentage charged by factors, extrapolating three percent per month to an interest rate of 36 percent per year. In the world of healthcare staffing financing, this scenario is like comparing apples to oranges. Read more
