Should You Make Invoice Factoring Offers Via Email?

In an age where birthday wishes seem limited to a Facebook Wall post and asking someone out on a date is abbreviated to accommodate Twitter’s 160 character limit, it leads us to ask:

Are we getting too impersonal when it comes to making offers or negotiation?

Despite the technological advances over the years the rules of negotiation have not changed. They have a set of “best practices” that the conveniences of technology can derail.

So, can you negotiate Factoring deals online?

To answer, let’s look at three basic negotiation techniques (that apply to factoring and business in general):

1. It must be personal.

Well, despite your ongoing political debates with friends and the numerous jokes being passed around by co-workers, email is anything but personal. Here’s a hint, when the proposal is being sent to, you are already losing the deal.

2. It must allow for interaction.

Don’t mistake emails going back and forth as meaningful interaction. Although the English language is powerful in the hands of a gifted writer, all bets are off when it comes to sending emails back and forth. There is no room for error when it comes to interpretation. Sarcasm, humor, and a host of other real-life emotions not only get lost, they get abused.

3. Sharing becomes easy.

This one is relatively new, but if you are up against someone else, expect your offer to be immediately forwarded to several of your competitors. I am going to guess you didn’t want them in on your best offer letter if you could help it. It also gives the competition to “one-up” your deal out of context. That is not to suggest that you don’t put an offer in writing but a potential client is far less apt to fax on your offer versus just hit “forward” on the email.

Email is a great “foot in the door” vehicle – at most. People want to do business with people, not computers. I receive numerous business proposals on an almost daily basis. Although I like them from a screening process, I would never continue ongoing communication from someone online. Sometimes you just need to get on the phone or meet face to face.

Modern technology can help us cut numerous corners, but the subtlety and importance of the negotiation process is just not one of them.

So, what do you think?  Should a factoring broker or factoring company use email to make and negotiate offers?  Tell us what you think in the comments below!



  1. La Mancha says

    This is an old way of thinking there is nothing wrong with using new tools as primary means of getting deals done. That old says is still alive and well “There is more than one way to skin a cat.” What may seem to be just a foot in the door at best for one person just may close a deal for another. Whatever works for a businessman to get a deal done works! To the author, Come on into the 21st century deals are still getting done in a variety of ways.

    • Fred Rewey says

      First off, thanks for the comment La Mancha. Certainly there is nothing wrong with using “new tools.” I am probably more up to date on emerging technologies than most (maybe even a bit too much). I also think technological implementation has its place – that you don’t just use it for the sake of using it as some people do.

      My point is that these tools should not replace personal contact and bonding. Which appears more personal? A hand written thank you card or an email? A phone call or a text message? I believe, in the end, deals are made on a person-to-person / business-to business basis. If somehow you can recreate that via email I think that is great. I just am of the opinion actually speaking with people stands out. Perhaps to your point, now more than ever.

      Thanks again

  2. Michael Botts says

    As a broker, I will not refer a deal to a funder I have not met personally and talked with. I would be hesitant to put clients at risk with a funder I did not feel comfortable with.

    Thank you for your insights and advice over the years.

  3. Technology is fantastic, however, any Factoring business must be presented with a phone call and not an email. It seems spammy and frankly, unprofessional.

Leave a Reply to Michael Botts Cancel reply


This site uses Akismet to reduce spam. Learn how your comment data is processed.