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...]
Best of How To Start A Factoring Business
Over the past few years I’ve written several articles about starting your own factoring business. Much of the information referred to resources, capital, due diligence and general topics related to the asset based lending industry. To this day I am still amazed over the response we have received on this topic. Today alone I’ve received calls from Europe, Asia and the U.S. about factoring. Since the interest level on this topic has remained so high I felt that it would be a good idea to do a "Best of How To Start A Factoring Business” compiled from previous articles and questions we have received over the last few years. 1. Should I begin as a factoring agent or broker rather than starting a direct funding company? First, understand … [Read more...]
Medical Factoring Wears Many Hats
Those of us that call ourselves medical factoring companies may in fact be quite different from one anther. Throughout the years certain niches have been serviced by finance companies all of which are called medical factoring but each focuses on dissimilar asset classes. This discussion is designed to identify these different asset classes within the framework of Medical Factoring, and to provide the broker with a clear understanding of how to find the right financial institution for each. Medical Factoring Wears Many Hats First we can begin with an easily understandable type of medical practice called “dentistry.” Dentists bill the typically recognizable insurance carriers that are associated with healthcare plans and payments. … [Read more...]
The Unique Problems of Construction Factoring (And How to Solve Them)
Construction factoring can be every bit as tricky to navigate as it is lucrative. Ask a factor what industries they can fund, and nine times out of ten they are going to claim they can fund almost everything under the sun - everything, of course, except one little pesky industry: Construction. … [Read more...]
Private Duty: When Healthcare Factoring Isn’t Really Healthcare Factoring
A look at why factoring services for private duty care and home healthcare are dramatically different in this article from PRN Funding. Home care recipients enjoy the many benefits of care in the comfort of their own homes. It’s easier for family members to be involved in the patient’s treatment and care, and being at home allows patients to minimize the stress of a sudden dramatic change in environment. A practical and financially savvy solution to shifting … [Read more...]
Like Apples to Oranges: Why You Can’t Compare Factors
When the clock is ticking and your business finances are at stake, how do you sift through your options to find the best factoring company? Locating great services for any type of need is challenging, so we often generalize to make things easier: for example, only considering location and cost vs. quality to find a good value. Sometimes this works, and to some extent you may be able to compare factoring companies in the same industry by fees, rates, and contract perks. Choosing a factor based on value is a disaster for your company when the factor isn’t … [Read more...]
What Invoice Factor Is Best For Your Company?
Once you have made the decision to Factor invoices, you have several options to consider when deciding what company to work with. In most cases (or industries) you want to work direct with the source. Cut out the middleman and save a few dollars in the process. This is common practice but not always the case when it comes to factoring. You certainly could work directly with a Factoring Company, but should you? … [Read more...]
Five Reasons to Consider Factoring Your Invoices
Anyone that runs a business on a day-to-day basis understands the need for continual cash flow. It is the lifeblood of business. The natural ebb and flow of business income can make some weeks a [financial] breeze while others may have you questioning whether you can make payroll the following week. With banks continually tightening the belt, many savvy business owners are turning to alternative means when it comes to generating a consistent cash flow. Here are five reasons to consider Invoice Factoring as your legitimate solution: … [Read more...]
Common Objections Encountered From Invoice Factoring Prospects
Although invoice factoring has become a bit more apparent in business finance today, misunderstandings, fears and objections are still quite common. Being prepared to hear and address objections or questions is the most professional approach to these encounters. Fortunately, the issues discussed herein are the most common concerns expressed by prospects and from my experience in both commercial and healthcare factoring will arise in almost all presentations or conference calls. … [Read more...]
New Healthcare Staffing Factoring Niche to Consider: Mental Health Specialists
I’m sure that many of you are aware that our nation is facing an imminent nurse shortage, and truth be told, there are a lot of cash flow opportunities within the temporary nurse staffing industry. With that said, there are also a lot of factoring brokers … [Read more...]