What changes are facing the Factoring Business?
We are honored to get insights from Bert Goldberg, Executive Director and founder of the International Factoring Association, in this issue of the Factoring Company spotlight.
Dedicated to providing training, information, and valuable resources to members of the factoring industry, IFA is well-known for its annual conference and publication of The Commercial Factor magazine.
1. How did you personally get started in the factoring business?
I began my factoring career in 1982 as a computer programmer for Distinctive Solutions (DSC). DSC was developing a new Asset Based Lending System, a product similar to factoring.
About 10 years later, DSC decided to develop a Factoring software product. I was initially as a programmer, but I worked my way up the corporate ladder and was promoted to President in 1994.
2. What prompted you to start the International Factoring Association in 1999?
When I became President of Distinctive Solutions, I started conducting user group meetings to help educate our customers on both our software and Factoring. I brought in experts from the factoring industry to lead some of the sessions. The speaking sessions turned out to be so popular that factors that did not have our software wanted to attend our meetings.
So that we could market the meetings to non customers, I created the International Factoring Association. From those humble beginnings, the IFA has grown to be the largest association for commercial finance companies in the world.
3. Please share some of the unique benefits the IFA organization provides to members.
Some of the benefits that we offer are:
- Access to FactorSearch, a service designed to let businesses that are seeking factoring the ability to e-mail specifics regarding their business to IFA members
- Membership in the IFA’ Social Media Website
- Access to IFA web site Forums
- Access to the IFA Membership List
- Discounts from IFA Preferred Vendors
- Annual Factoring Conference discount
- Discount on IFA Conference Calls
- Discounts in the IFA Store
- Discount listings on the IFA Job Board
- Discounts on IFA Training Classes
- Ability to submit legal briefs to the Amicus Brief program
- Use of the IFA logo for advertising, web sites, etc.
4. Who is eligible for membership and can factoring brokers participate?
Membership is open to any companies that conduct factoring or asset based lending. Brokers may participate in any and all of the courses and meetings that the IFA offers.
5. What factoring training events are scheduled for the year?
Account Executive / Loan Officer Training
October 18 – 19 – Planet Hollywood – Las Vegas, NV
Small Factors Meeting
October 20 – 21 – Planet Hollywood – Las Vegas, NV
Sales & Marketing
October 27 – 28 – Planet Hollywood – Las Vegas, NV
Negotiations with Märianne Eby, Esq.
December 8 – 9 – Planet Hollywood – Las Vegas, NV
Presidents & Senior Executives Meeting
January 26 – 27 – JW Marriott Guanacaste – Costa Rica
6. Where will you hold the 2012 IFA convention and how many people usually attend?
We are expecting over 600 attendees at the 2012 convention to be held April 18 – 21st at the Hyatt Regency Resort & Spa in Huntington Beach, CA.
This is the largest gathering of people and companies involved with the factoring industry in the world.
7. What do you consider the best methods for finding factoring leads?
Network, Network, Network.
Meet with accountants and attorneys in your area. Attend business meetings such as chamber of commerce mixers. Also, be persistent with your message, timing is important.
8. What advice would you give to new factoring professionals just starting out in the industry?
Do what you know.
If you’re background is in manufacturing, contact companies in that industry. You will know the buzzwords and be able to communicate with them more effectively than you could in an industry that you don’t understand. Also, spend the time to learn about factoring. Attend an IFA training course or meeting. The knowledge you gain will enable you to talk intelligently with both the factoring community and businesses.
9. What is the most common business mistake you see factoring companies make?
Factors should always follow their procedures and then not get too greedy. Factors go out of business because their insufficient due diligence and they were over concentrated with a single client / debtor.
10. Are there any changes or concerns currently facing the factoring industry?
The biggest concern to the factoring industry is the threat of being legislated out of existence. Fraud may put one factor out of business; legislation could put all factors out of business. I created the American Factoring Association (AFA) for the sole purpose of educating policy makers in Washington DC on the benefits of the factoring industry. Information about the AFA is at www.americanfactoring.org.
11. Where can people contact you to obtain more information?
International Factoring Association Website: www.factoring.org
Email: bert[@]factoring.org
Phone: 805-773-0011 x 12
12. Is there anything else you would like to share with our readers?
Factoring is a wonderful industry, but it does have its own set of challenges. If you become involved with this industry, learn all you can about it. If you plan to broker, learn what factors do and how they run their business.
The more you learn, the better broker you will become. The IFA offers a Sales & Marketing course specifically for the factoring industry. If you are serious about this industry, take the time to educate yourself by attending our training courses and our annual factoring conference.
[…] […]