One of the most common slogans you’ll see on any factoring company’s website is how they are better than most banks in getting businesses working capital. Conventional thinking is that banks qualify prospective clients based on the financial stability of the company whereas invoice factoring companies focus more on the credit worthiness of client’s customers. Therefore a prospect with little or no credit or one that has been in business for a short period of time can qualify for a factoring line assuming they have strong customers. For example, many banks will ask for several years of tax returns, financial statements and sufficient collateral to offset the loan. When dealing with the SBA, new companies will have to submit a business … [Read more...]
Archives for May 2014
Are Factoring Companies Prepared to Handle Your Leads?
The factoring world is changing – can your funding sources keep up? Your success as a broker hinges on your ability to place prospects with factoring companies that will close the deal. It is critical, then, that you focus you energy on working with funders that are prepared on every level to accept leads from brokers. So, are factoring companies prepared to effectively handle your leads? Below are some important things to consider before sending leads to any factoring company. Have a conversation with each funder before referring deals in which you learn their expectations of you, establish your expectations of them and make sure you are comfortable with their ability to meet your requirements. If their system doesn’t measure up, you … [Read more...]