Consider the average number of times per month someone searches these terms online:

• Receivable Financing – 12,100
• Invoice Factoring – 14,800
• What is a Factoring Company? – 18,100
• Factor Company – 27,100

(Source: Google Adwords™ Keyword Tool. *GOOGLE is a trademark of Google Inc. and not associated with this site or author.)

There is no question that the buying and selling of invoices is a people business. You need to cultivate a relationship, but…

  before there is a relationship, you need to meet each other.

More and more businesses are turning online to meet their researching needs… for everything. Finding a company to factor invoices is no exception.

So, how do you help give your factoring business an edge online?

Try these three things…

1. Have a Great Factoring Website

A quick, ready-made, one page site from “Website Tonight” on GoDaddy might seem like a good idea. Sure, it may be better than nothing…but not much.

At a minimum you are going to want to create a professional presence and a way for people to contact you. Professional, effective, and search-optimized sites can now be built for as little as $349.00 (Check out ExposureOne.com for affordable website ideas).

2. Claim Your Google Places™ Business Listing

Make sure you are on listed on Google Places™ for business. If you have been around as a factoring company for some time, you probably already have a “Places Page” created in Google* search – and just not claimed it. For some great info on setting up your page, go here Google Places Help for Small Business.

3. Be Social

There are plenty of forums and social media sites that have a variety of factoring related discussions going on. These include questions from new brokers as well as potential clients. To be seen and heard you can create a profile and check in with them (at least on a weekly basis) to contribute and interact. You can read more tips at Factoring Training: Social Media and Small Business.

No matter how you cut it, there are deals to be had online. Your business income may very well be determined by your ability to gain more clients from this media. It doesn’t take a lot of work – and very little ongoing work.

Now is as good a time as any. If you have been putting off starting (or improving) your online factoring business presence, why not start today?

Sooner or later, your efforts are going to turn to the Internet to find ways to leverage new clients.

In the beginning you will be faced with two big options…FACEBOOK® or GOOGLE+1™.

There seems to be a lot of confusion out there on whether your business should be using Facebook or Google+1 as a way to bolster up some marketing efforts.

Although both Facebook and Google+1 should have a place in your efforts (you don’t have to pick just one), most likely, one outshines the other as a good fit.

Here are a couple things to pay attention to when marketing your factoring company online.

If you are looking for interaction, you want Facebook.

But this assumes TRUE interaction. In other words, just because you have 3000 Facebook fans doesn’t mean they are reading anything you are putting up.

Are they leaving comments?

Are they sharing your posts?

If they are leaving comments, hitting the “like” button, and interacting, Facebook may be well suited for you. You just need to find a way to convert them to clients. If there is not a lot of interaction, you may just be wasting your time.

Fans work well when the “page” is a product or celebrity – not so much a company. A “company” is just too broad.

For example, how many raving fans would there be if I had a fan page on “Farms?” I am sure I would have some. Now, how many fans would I have if my page were the subject of “bacon.” – lots I imagine (who doesn’t like bacon) – and it is way more targeted.

The other downside on Facebook is that your efforts are limited to your ability to keep the content coming – and it won’t, for the most part, help you in the search rankings.

So, if you have interaction, go with Facebook. Otherwise think of Google+1.

Are you looking for “hands off” marketing?

Google+1 has two big advantages over Facebook when it comes to increasing your Internet exposure (and hopefully factoring business).

One, it does not require an ongoing amount of content from you. If people click the “+1” button their additional “circles” will be in on the action. It doesn’t require more content from you or more people “sharing” like Facebook.

Secondly, that little plus button can help you in the search rankings. Although Google does not formally release all the ins and outs behind their programming, one thing is clear: the more people “+1” your site, the higher up you may get in the search rankings.

As popular as Facebook is, it has yet to make a big “business” impact. Many Fan Pages are dead on arrival and do nothing for actual business.

Google +1 seems more in the thick of it when it comes to business. If someone is searching for your company the +1 can give you some extra credibility (Facebook can’t really help you there).

(Note: FACEBOOK is a registered trademark of Facebook, Inc. and GOOGLE is a registered trademark of Google Inc. This article was written based on research and professional experience.  This author, company, and website are not endorsed by or affiliated with either FACEBOOK, Inc. or GOOGLE Inc).

So, who is right for your factoring business?

As we mentioned in the beginning, we really thing you need to keep both on your radar…but for now, we give the edge to Google +1 if you are talking about getting more business.

Facebook is personal. But until users can separate business from personal on Facebook (as in two separate accounts) the business side just seems to be an after thought.

Whether I’m conducting a cash flow workshop or networking with colleagues, this question seems to come up at least once per event.

With the recent downturn in the economy and banks constricting lending, invoice factoring has become a popular alternative for many businesses seeking capital to expand their operations.

Although factoring has been around for ages, its newfound popularity and low barrier to entry has created an influx of new factoring brokers and funding sources looking to make deals. Having worked in both the insurance and mortgage industries many salespeople contact me inquiring about factoring and where to find new referral business.

So, back to the original question,

“Where does a factoring broker or funding source go to find prospects for invoice factoring?”

From my perspective, there is no magic place or formula, otherwise everyone would have figured it out by now. Here are a few points to consider before you begin to prospect for new clients:

1. Personality

Every person is unique and what works for one may not work for another. Some brokers may prefer speaking in front of groups of people while others are more comfortable with networking groups. Several of our colleagues are extremely proficient with social media or have very popular websites that draw new prospects through ad clicks.

2. Experience

I have found that many successful brokers have experience in a particular industry, which utilizes factoring giving them an edge in finding prospects. For example, we have funded many prospects from brokers in the apparel and transportation industry that had previously worked in those industries.

3. Persistence

Plant seeds. The prospect or business referral you meet today may not connect with you at first but may bear fruit sometime in the future. I cannot tell you how many times we receive calls and emails from brokers, bankers and CPAs that were from events from months and years past.

The bottom line is that your success depends on you. Some factoring brokers may prefer to stay in their sweet spot when looking for new business while others may wish to venture into new areas of opportunity. No matter which course you choose be persistent, be patient and most importantly enjoy the ride.

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 factoring company website at www.oxygenfunding.com.

You may also enjoy these additional articles by Don on the factoring business:

Factoring Invoices – Waking a Small Sleeping Giant

Is Factoring Always About the Account Debtor?

Starting Your Own Factoring Business?  It’s Your Call!

Way back in the day, (maybe six or seven years ago), most marketing plans consisted of an advertising budget, maybe some PR, a newsletter and occasional updates to the company’s website. Depending on the size of the company, a marketing director could spend a small fortune on a basic “shotgun approach” where they place ads in local papers or trade magazines and hope that someone found it interesting enough to purchase their product or service. Just scan through the daily mail you receive at your home or office and you’ll find flyers and postcards from companies trying to earn your business. I’m not saying these approaches are not effective, but with advent of social media, many businesses with little or no budget can market their goods and services in a very effective manner.

Unless you live under a rock, almost everyone is familiar with social media and how it has changed the way we communicate with each other. Social networking sites such as Facebook have over 750 million subscribers with each user having an average of 130 friends. From a business perspective, entrepreneurs and developers from more than 190 countries build with Facebook Platform. Twitter, which just celebrated its five year anniversary in May, has about 175 million subscribers that send over 456 “tweets” per second! There are many other forms of social media other than social networks such as podcasts, blogs, RSS feeds to name a few.

What makes this social media movement so exciting for factoring companies and other small businesses is that any company looking to get noticed can do so with little or no money. Setting up an account with Facebook, Twitter or LinkedIn is free and a very good place to start. On LinkedIn, start by joining groups within your own industry to keep track of the latest news and events. Create a Facebook page for your business and get your friends and colleagues to “Like” your page. On Twitter, go to the “Who to follow” section and search for people and companies with similar interests.

Just as it is import to be part of social media for your business, it is even more important to participate by posting information with good content. What exactly does good content mean? Here are a few general guidelines that I like to use before I post information on our website:

1. Post useful information – this may sound like a no brainer, but you would be surprised how often I come across posts from friends and colleagues with no real point.

2. Entertain – try not to be boring. Liven up your post with some humor, or a personal experience on how you might have done something better.

3. Be an expert – know your facts about the topic so your followers look to you as a resource when they have questions.

What makes social media appealing to so many businesses is that there is no barrier to entry, little or no cost and you can use it as much as you want. Not a bad deal at all.

About the Author: 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.

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!

New Factoring Broker Promotion!

We all know that factoring brokers normally get paid a referral fee after the factoring companies fund the invoices.  But PRN Funding is currently running a special offer to factoring brokers that pays a $50 gift card upon referral of a qualified medical staffing lead!

It doesn’t matter if it turns into a closed deal… you still get paid! It just has to meet these requirements:

Upon evaluation and approval that the following criteria have been met for a referral, PRN Funding will mail out a $50 gift card (of the broker’s choosing) directly to the referral source:

1. The prospect must be an organized entity (Corporation, LLC). Sole proprietorships, general partnerships and DBA’s do not qualify for this promotion.
2. Broker/cash flow consultant must, at minimum, informally introduce PRN Funding, LLC to the prospect. In other words, PRN Funding will not make any cold calls as part of this promotion.
3. The prospect must have a legitimate need and interest in accounts receivable factoring.
4. PRN Funding must receive a completed application and accounts receivable aging report from the prospect.

Source: Get all the details from Nikki Flores of PRN Funding at Factoring Broker Summer Promo.

Gift card choices include popular places like Amazon, AMC Movie Theaters, Starbucks, iTunes, Golfsmith, Olive Garden, and many more.

Want more good factoring news?

You can also be eligible to win an iPad if you refer the most potential clients (with at least 3 leads needed to qualify).

But hurry, factoring brokers have until September 30, 2011 to take advantage of this great offer.

Need marketing ideas to jump start your factoring business?

Grab your copy of Marketing Tools for Small Factors and Consultants.

You’ll get instant access to this incredible ebook filled with 45 marketing strategies from 7 successful factoring brokers, consultants, and companies.

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.

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!  

Sure it sounds basic, but you wouldn’t believe the number of people who focus on everything but getting the phone to ring. Matter of fact, you should be spending at least 70% of your time looking for future business. If you fall below 40% you need to reprioritize or hire out some of your time consuming work.  

So how do you do it? Well, when it comes to marketing, you should be focused on three areas.  

1. Clear Message - Chances are you can ‘talk the talk” when it comes to your business. You might even be able to talk circles around colleagues, but that wont help you in your marketing. Oftentimes people create elaborate marketing messages that only confuse people. People don’t need any more confusion in their lives. Matter of fact, they will gravitate to the least confusing solution. Make sure your marketing message speaks, clearly, to the intended audience.  

2. Qualified Mass – Don’t send your marketing message out just random. Target your market. For example, if you wish to target staffing agencies, placing an advertisement in the newspaper is too costly for the off chance someone who runs a staffing agency is reading that part of the paper. Conversely, you need only open your phonebook, search the Internet, or go through a good list company to get all the names and addresses your want.  

3. You Just Want Them To Call – The goal of any marketing should be for the potential client to want more information. Sometimes consultants put too much information in their marketing. So much in fact the reader has already made a decision on whether or not they need your services. Your goal should be to include just enough information so they are curious enough to call you; that is where deals will be made.  

In the end, it doesn’t matter how great your product or service is if no one calls you to ask for more information. Focus your efforts on marketing, test different methods, and get that phone to ring. The rest will take care of itself.