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 may want to move on.

Is the factoring company structured to accept leads from different sources?

Prospects come to a funder through a variety of channels, and different sources require different techniques. A lead generated through online marketing and SEO may need more follow-up to close than a lead recruited by an internal employee, for example.

Broker-referred leads add a new level of complexity to the process, particularly depending on how comprehensive your referral is. Do you send a complete package with financial information and some completed due diligence, a name and number with basic information, or something in between? However you send leads, your factors should be able to handle them.

Who are you contacting with a referral?

Think of the funder you refer to most often. Who are you calling or emailing with that lead? Do you have a constant point of contact, and who is that person – the company owner, a sales manager, or a salesperson? If you don’t have a single contact, what determines who you call and, more importantly, does the factoring company have a central system for keeping track of every lead you refer?

No matter who you call, are you able to make contact easily or do you spend a day playing phone or email tag? Also, do they give you notice when they will be out and provide an alternate contact? If not, consider that a massive red flag and rethink your relationship with that company.

Does the funder acknowledge your leads immediately?

Do your funders promise prompt acknowledgement…and do they deliver? Some leads are more fast-paced than others, especially in industries such as trucking. If a factoring company is unable to immediately follow up with a lead, there’s a good chance the lead has already moved on to another funder. Even in less urgent situations, however, it is frustrating for both you and your prospect to wait around for an initial contact. Your funders should have a consistent method of acknowledging your prospects, not only that they have received them, but if they are interested in pursuing them (or not).

Does the factoring company have the corporate culture to RELENTLESSLY pursue a deal?

How much work does your funder put into establishing contact with your leads? How many calls will they make before they deem a lead unresponsive? Are they available to answer the lead’s questions, and do they make every reasonable effort to meet the lead’s factoring needs?

So many leads fall through the cracks – not because they are not fundable, but because the factor was too quick to let them die. In fact, we’ve received more than one unfortunate call from a frustrated prospect whose calls to their factor go unanswered. If you want deals to close and to get paid, you want to work with a funder that will maintain open lines of communication and not give up on your prospect until there is absolutely no alternative.

Do your factors follow up with YOU?

This goes back to the first point about the factoring company’s structure. Do you work with funders that provide accurate, timely updates on your prospects? Or, do you have to chase down your contact every week or two to stay in the loop? If you have to track down every update on every lead, you are taking valuable time away from attracting and referring new prospects – and money out of your own pocket.

Make sure the factors you work with completely understand what constitutes a solid update for your records and how often you expect to receive them, whether you only need updates when something moves or you want regular updates even if nothing has changed. Emphasize the importance of accuracy, and don’t be afraid to follow up directly with your prospects if you have reason to believe the factor isn’t giving you all of the details.

By concentrating your referral efforts on factoring companies that are ready to handle your leads properly, you will not only improve the quality of your customer service, but also save yourself valuable time, money, and energy.

About the Author: Factor Finders specializes in finding factoring companies that can fund difficult-to-place deals. Our services help other factoring brokers capitalize on commissions that might otherwise be lost.

If you have a prospective transaction that you cannot find a funder then contact us at FactorFinders.com. We’ll find the factor for you and split commissions 50-50.