Selling factoring services can be very challenging, especially in this environment where there is very strong competition. Not only do you have to help clients determine if factoring is right for them, you also have to show them how your solution is better for them that everyone else’s. This may sound simple, but selling factoring services in this market is very difficult. It’s a crowded market with every factoring company promoting their benefits. You can expect that most prospects will be talking to four or five different factors. One simple approach is to match what they are saying. But if you do that, you become a “me too!” factoring provider that will only get average results. So, how do you break through that barrier? How do … [Read more...]
Archives for 2013
The Do’s and Don’ts of Factoring Trade Shows
It’s that time of the year again… tradeshow season is upon us. Tradeshow exhibiting is a great way to attract new factoring business, but it’s also time consuming and expensive. Since relationship building is hard to quantify, sometimes it’s difficult to determine the value of attending industry shows or marketing events. PRN Funding has attended many shows across various industries. Based on our experience, we have compiled a list of trade show do’s and don’ts to help make your next trade show exhibit a rewarding experience. Do... Research Ask questions before considering any trade show. What’s the audience demographic? What types of companies will be exhibiting? How will the trade show contribute to business goals? Being … [Read more...]
Is Invoice Factoring Right for All Businesses?
So many authors, including myself, have written about the benefits of invoice factoring explaining how we help businesses in need of working capital. Just type something like, “benefits of invoice factoring” into your favorite search engine and you will find pages of articles telling you how factoring works and why it is the best solution for your business. As the owner of a factoring company I can definitely say that factoring is an extremely useful tool to help businesses grow by unlocking cash in the form of an account receivable. But is factoring a one fit all tool for all businesses to achieve growth? As a featured speaker and panelist at small business workshops over the last several years, I’m fortunate to be given the … [Read more...]
Fast Pay Factoring For Digital Media Receivables
Working with digital media receivables? It helps to know a factoring company that specializes in online deliverables. Meet Jed Simon, CEO of FastPay, in this recent Factoring Investor interview. What receivables will your factoring company consider funding? Jed Simon, CEO: FastPay primarily funds digital media receivables. We’ll advance on invoices signifying completed work including, but not limited to, ad campaigns, creative campaigns and delivered impressions. How did you get your start in the business? While I was responsible for digital media at DreamWorks, I recognized a universal pain point in the digital media industry - many big brands and agencies have onerous payment cycles (Net 90+) that hamper the growth of smaller digital … [Read more...]
Are They Really a Factoring Prospect? The Telephone Interview
In my early days in the factoring business, prospect calls were few and far between. Whenever the phone rang, I grabbed it quickly and hoped for the best. In those days, the process of qualifying a prospect could take me up to an hour. I would have long detailed conversations, learning everything I could about the client’s business. After these detailed calls, I would hand the client off to the factoring company I thought would help them best. But there were two problems with this strategy. First, it was not a very effective use of my time. Especially when I found out, 45 minutes into a call, that the prospect would not qualify for factoring. And second, it did not scale well. It wasn’t long before I was on the phone eight hours … [Read more...]
Qualifying vs. Working For Your Receivable Factoring Referral Fee
What is expected of the receivable factoring referral source? As a direct funder, we have requirements of our factoring brokers. Our brokers make monthly residual income and for that, certain things have to be done. The basic minimum requirement is to introduce a potential client to us and to complete/submit the necessary broker agreement. Once that process is completed and the transaction closes the broker has qualified for his/her fee and once payments are collected from payers, fees are distributed. The question here is “Should the factoring broker be satisfied with this?” If a referral source is to be successful that individual must look after, or nurture the prospect. It should always be noted that the broker is the first line of … [Read more...]
Social Media: Worth the Time for Factors?
Factors and brokers know that time is everything when it comes to factoring. In order to find and close deals, connecting and following up with a lead quickly is essential. Marketing is an important part of growing any business. That’s why factoring companies often devote a substantial amount of time to marketing, advertising and branding efforts. Social Buzz Social media seems to be the new hot thing when it comes to online marketing—after all, there is a huge audience available, it’s targeted, and it is about as cheap as it gets. Current marketing research from HubSpot shows that social media produces double the leads of trade shows or pay-per-click advertising. Also, companies that generate over 1,000 Facebook likes are also likely to … [Read more...]
Asking the Right Factoring Questions
Everybody has an opinion as to how factoring works and the best method to fund deals. Many of the articles I’ve written in the past try to assist the broker and factor from both the sales and operational side of the equation. Is there a magic formula to use to get more deals closed? We all know there is no secret that will land you more deals, but positioning yourself, asking the right questions and using common sense will sure go a long way. Unlike a traditional bank loan which requires collateral as security, factoring typically involves advancing funds through the purchase of an invoice. The invoice is an instrument that represents a promise from one party to pay another for delivered goods or services. No risk at all associated … [Read more...]
Six Tips For A Beginning Factoring Consultant or Broker
If you are new to the factoring industry or are considering becoming a factoring professional, this article is for you. I have been involved in the industry for a decade and through the years have seen a number of consultants do well. However, I have also seen a large number of consultants leave the business – unable to make ends meet. Many of those consultants made critical mistakes that could have been easily corrected. These tips are intended to help you avoid making those mistakes. Tips For Starting as a Factoring Consultant or Broker Tip #1: Know your product This is the cardinal rule for success in any industry. You have to know your product, and know it well. However, most beginning consultants don’t spend enough time … [Read more...]
Factoring Brokers Unite!
We have all heard the expression that “half of something is better than all of nothing.” Along with that as a “given,” let’s also realize that we all have our strengths and weaknesses. The combination of these two statements leads us to a discussion on how and why factoring brokers can join forces with others. Many financial consultants have contacted us asking about ideas for marketing their factoring businesses. Of course, we provide as much help to our brokers as we can so we go through the entire litany of ideas and strategies. All aspects are discussed and responses generally vary. We’ve heard “No, I don’t like networking events because I’m shy.” Another common response is “I do not do phone cold calls.” Still another one is “I … [Read more...]