In this article you are going to learn about a simple technique to forecast future revenues as a factoring broker based on your existing portfolio of prospects. This technique is useful because it allows you to determine, at the beginning of a month, the approximate revenues that you will earn from your efforts. And more importantly, it helps you evaluate whether your sales efforts are working as well you’d like. Setting up Revenue Tracking This method of forecasting is based on the simple premise that … [Read more...]
Archives for March 2013
Purchase Order Funding And Factoring Offer Full Service Financing
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Discover how Purchase Order Funding and Factoring can provide full service financing for your clients. How often has it occurred that you have prospected for factoring clients, and when it came time to qualify your lead, they really needed a finance product that provided funds before the creation of an invoice? We know first hand that such situations are very common. We’ve even had the situation where we sent out a proposal and the applicant replied that they needed up front funding, not invoice factoring, even though we fully explained at the start that we did factoring. It was soon after that event when I realized that factoring and purchase order (PO) funding are closely related and the two products can offer referral sources … [Read more...]
Sequestration and Business: What Factors Need to Know
Start planning now for the effects of sequestration on factoring and your business. As far as sequestration goes, it feels a little like waiting for the other shoe to drop. Due to the failure of the government to come to a workable agreement on spending reduction, automatic across-the-board cuts were implemented on March 1st. Many government programs and jobs will be impacted, as well as the businesses that work directly and indirectly with them. While exemptions from the cuts do exist, sequestration will have far reaching implications for industries like healthcare as well as … [Read more...]
Best of How To Start A Factoring Business
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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
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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...]