You’ve read the books, attended the training classes and finally have landed your first real prospect. They are eager to get started factoring their invoices and you can’t wait to get this deal closed. Whether you are working as a broker, business development officer or direct funder, this is the starting point where you will need to connect the dots to see if the deal will move forward or be declined. What Is The Business Trying To Achieve By Funding Invoices? Before the credit reports are generated, UCC-1(s) filed, or any other piece of due diligence is started, it is really important for you to understand what the prospect is trying to achieve by obtaining your services. Sure, we all know the easy answer is that the applicant is … [Read more...]
Archives for February 2014
New Medicaid Incentive Creates Opportunity for Home Care Factoring Growth
An Affordable Care Act program designed to incentivize home and community care over nursing homes will create a huge growth opportunity for home care staffing agencies in participating states. The Balancing Incentive Payments Program is a $3 billion dollar program that will match state spending for alternative care at higher levels through September 2015. To qualify, participating states must have lower than 50 percent current Medicaid spending on home and community care. They must also demonstrate that they are making it easier for patients to access treatment alternatives to nursing home facilities. Seventeen states are currently participating in the Balancing Incentive Payments Program: Arkansas, Connecticut, Georgia, Illinois, … [Read more...]
6 Tips For New Factoring Companies
In recent months I have been writing about brokers who want to start their factoring companies. This is an important topic for brokers since many want to move to the direct funding side of things. Unfortunately, most have unrealistic expectations about their chances of success. They like to focus on the potential positive aspects of the move, such as higher revenues. But they often ignore the obvious risks, such as losing principal or going out of business. Here are six tips that will help you survive your first year as a factor. 1. Double your marketing budget One of the toughest things in this business is getting clients. Due to intense competition, the cost of acquiring a client is very high. New factoring companies often underestimate … [Read more...]
Is Invoice Factoring Becoming Mainstream?
Let’s say you are in business for yourself and begin your morning ritual. Coffee. Email. Facebook. You know…not quite ready to get into the day-to-day stress of work, employees, and cash flow issues. Then you see this on Facebook…. Invoice Factoring has entered social media…and in a BIG way. And when something enters social media…it becomes mainstream. And mainstream means, potentially, big profits. Fundbox.com is just one such factoring company* that understands the importance of social media, websites and online marketing. *[UPDATE: Tomer Michaeli, co-founder at Fundbox, was nice enough to contact us and give us a bit more insight to their business model. - "Fundbox is not a factoring company...We are a technology … [Read more...]