Common Objections Encountered From Invoice Factoring Prospects

Although invoice factoring has become a bit more apparent in business finance today, misunderstandings, fears and objections are still quite common.

Being prepared to hear and address objections or questions is the most professional approach to these encounters.

Fortunately, the issues discussed herein are the most common concerns expressed by prospects and from my experience in both commercial and healthcare factoring will arise in almost all presentations or conference calls. Read more

The Factoring Business Notice of Assignment – Never Fund Without It

Real life scenario explains why factoring companies require a Notice of Assignment to fund business invoices in this article from Oxygen Funding.

A few years ago we had a factoring business prospect referred to us from a broker that was affiliated with our company. The prospect was engaged in the business of logistics, working with several well known automotive companies. His business was growing and he needed cash flow to hire additional employees and take on more jobs. Read more

Factoring 101: Don’t Make It Difficult

One thing I love about the factoring industry is that once we remove all the layers of speculation, it really is a straight forward business.

People new to the industry, both brokers and companies thinking about using factoring services, have an uncanny ability of making things more difficult than need be.

Terms like “hold back,” “reserves,” “advance rate,” and “points” can put people on edge.

Add to the fact that just about everyone tries to compare “factoring vs. bank loans” and it is no wonder Read more

Factoring News: Sears Reaches Agreement with Factors

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.

Factor in Some Good News for the Factoring Industry

The New Year has arrived and with it comes the hopes and expectations for results to exceed those in previous years. Let’s face it, we all want to increase sales and profitability whether it’s in January or the middle of the summer.

With traditional financial institutions continuing their stranglehold on lending to businesses, the factoring industry has experienced a renewed interest from companies seeking Read more

How Factoring Benefits Private Duty Care Agencies

Now more than ever, private duty care agencies and home healthcare companies need cash flow to sustain their operating expenses, such as Read more

How Medical Supplies Companies Benefit From Factoring

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 Brokers Need to Concentrate On Value, Not Just Money

The essence of offering factoring broker services is fairly simple. Help companies sell invoices to gain quick access to cash.

But if you are only concentrating on the “money” side of the business, then you are only focusing on half of the issue. Read more

International Factoring Association Interview

What changes are facing the Factoring Business?

We are honored to get insights from Bert Goldberg, Executive Director and founder of the International Factoring Association, in this issue of Read more

Allied Health Staffing Factoring – A Financing Solution For Expanding Companies

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

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