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...]
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...]
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...]
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...]
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...]
Common Sense Advice for Factoring Brokers
One of the reasons why I enjoy working in the factoring industry is that almost every day presents a challenge when it comes to looking at prospects and finding new ways to close a deal. As great as that sounds we all know too well that most prospects do not make it past the application review to the due diligence process. In many cases we find the applicant needs some other type of financing or they have some past derogatory issues that cannot be cured. … [Read more...]
How To Forecast Your Factoring Broker Revenues
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...]