As far as I can tell, every factoring broker and every factoring company claims to have exceptional customer service, that they can fund clients quickly, and that their prices are the most competitive in the market. Everybody says and focuses on that almost exclusively. Because of this, factoring companies look the same from the outside. It’s easy for prospects to see how brokers market themselves and conclude that all factoring companies are the same – basically a dime a dozen. Is factoring a commodity? Let’s look at the other side of things. Most brokers and factors complain that prospects often don’t treat them well: prospects negotiate harshly, shop incessantly for better terms, and threaten to leave for a competitor at the … [Read more...]
Archives for 2013
5 Things Successful Factoring Brokers Do
As a factoring broker, you have the opportunity to work with both factoring companies and businesses looking for funding. This requires plenty of time, effort, expertise in an assortment of industries, and a knack for relationship building. Without a doubt, it’s hard work to become a successful factoring broker. Here are 5 things successful factoring brokers do to lay the foundation for a profitable operation. 1. Never Stop Learning Factoring brokers should always stay up to date on the factoring industry, marketing trends, technology, competitors, and current events. Success comes to active learners who are open to new experiences and willing to seek or create opportunities for growth. Build relationships with other factoring experts … [Read more...]
The Factoring Company Waiting Game
Whether you’re in line at your local grocery store, sitting in a doctor’s office or just looking to grab a bite at your favorite restaurant, we all have to wait. In our modern world of instant text messaging, mega fast downloads and next day deliveries we’ve become a society that expects everything when we want it and the faster the better. The same is true in the factoring industry. How many websites (including yours truly) boast phrases like “Same Day Funding” or “Approvals in 24 Hours or Less”? Let’s face it, with almost any service provider, speed is king. The first question we usually get from new prospects is how long will it take for them to get funded. In most cases they expect to be funded in a few days or less. Brokers … [Read more...]
Top 3 Mistakes That Factoring Intermediaries and Brokers Make
Although factoring is not a seasonal business, per se, it does have its high and low periods during the year. We are about to enter what is often the busiest period for the factoring industry – mid-September to mid-December. This is an important period for your business, and it’s critical that you operate efficiently in order to capitalize on as many opportunities as possible. To achieve this result, you need solid factoring partnerships in place, a well-developed sales technique, and a process to manage your sales channels and increase your closing ratios. At the same time, you must be careful to avoid these common deal-killing mistakes. Not knowing your product well enough This very common problem primarily affects newer factoring … [Read more...]
An Invitation to Connect With Factoring Investor on LinkedIn
We are excited to announce the new Factoring Investor Group on LinkedIn dedicated to providing information on the Factoring Industry. Whether you are a business looking for financing alternatives, a broker receiving commissions, or an investor seeking solid returns this group is here to help. The group is moderated meaning that members need to join and discussions must be approved. This helps reduce the spam and keeps the focus on invoice financing. We invite you to click here to join this factoring networking group today. If you are new to social media networking then we have you covered with... 7 Tips for Getting the Most Out of LinkedIn For Factoring Professionals 1. Use a Profile Picture Sorry but you don’t get to be the … [Read more...]
6 Online Reputation Management Tips for Factoring Brokers
Factoring brokers rely heavily on word of mouth and positive endorsements to drive business growth. No matter how large or small your factoring broker business may be, people are probably talking about it somewhere on the web. Potential clients are Googling your company name, commenting on your social media updates and blog articles and most certainly checking out any reviews that have been posted regarding your services (or leaving their own review). Any content posted online about your business makes the difference in gaining or losing clients. Regularly tracking what is being said about your company online is more important than ever. All it takes is one bad review, mock Twitter account or an angry blog post to go viral and your … [Read more...]
Relationships Matter to Success in the Factoring Industry
The famous French philosopher Voltaire once said, “The ladder of success must be set upon something solid before you can start to climb”. You can interpret this quote in a variety of ways and for me it really hits home when I look at our success in the factoring industry. We’ll get to that in a moment. The first question that always comes to mind when talking about success is how do you measure it? Talk to most folks and the answer is usually associated with the bottom line. Anyone that follows the financial markets knows what happens to a company’s stock price when they either beat or miss analysts’ expectations for a given period. Let’s face it, without profits companies cannot sustain their operations and continue to be a going … [Read more...]
How to Finance a Demolition Company With Construction Factoring
Getting financing for a company in the construction industry is very difficult. In general, lending institutions are not comfortable providing business financing to small or midsized construction subcontractors. Demolition companies often have additional problems getting funded because many institutional lenders view them as riskier - due to the perception that they are often the first ones to do work on a site, but the last ones to get paid. The biggest cash flow problem Demolition companies, like most subcontractors, don’t get paid as soon as they complete their work. Rather, their contracts demand that the provide payment terms to the general contractor. These terms often give the GC up to 60 days to pay. Many general contractors, who … [Read more...]
5 Traits of Highly Effective Factoring Salespeople
Anyone can get on the phone and talk to potential customers, but it takes a special person to excel at closing deals. Sales are a vital part of the factoring industry—without sales there would be no new customers, and therefore no growth. No factoring company wants to remain stagnant, so finding and cultivating highly effective salespeople is important. Using firsthand experience and the knowledge of experts, we have identified 5 traits to look for when hiring sales representatives for your factoring business. 1. Goal Orientation Success comes to those who want it most. Because sales are relatively objective and therefore easy to measure in the factoring industry, setting clear goals is a simple way to measure achievement. The best … [Read more...]
Why Factoring Works
Working capital - Every business needs it but at what cost? One of the main reasons why I enjoy working in the factoring business is that the concept is simple and easy to understand. Factoring companies provide businesses with working capital by purchasing their client’s outstanding receivables. Typically a factoring transaction is an arrangement between three parties (client, factor and vendor) all of whom are businesses. The business owner understands his profit margins and the expense associated with factoring while the factor evaluates the risk. In most cases the increase in cash flow will not only justify the cost but actually lower operating margins by increasing sales for the business. But why is factoring so popular … [Read more...]