With the recession and tightening credit markets the timing couldn’t be better to be part of the Factoring Industry than right now!
I recently stumbled on an article from The Secured Lender Dec. 2008 issue that reinforces what Millennium Funding has been experiencing for the better part of the last 6 months and in my opinion there is no end in sight.
I thought it would be beneficial to share some of this article with you, as it reinforces what most of us in the industry already know – recession is good for factors!
The article, entitled Dance of the Propeller Heads, by Stephen Troy, starts off by stating:
“Factors and asset-based lenders are in an unprecedented position to capitalize on the tight credit markets right now. So much so, that this recession may just be paradise for some.”
The author further comments:
“The truth is, if you are a Purchase Order (PO) finance company, factor or asset-based lender, this recession is Nirvana. With the credit markets and the banks in crisis, the remainder of this decade, and possibly much of the next, could be the finest environment for the entrepreneur specialty-finance company.
When the banks tighten up, specialty finance companies make a resurgence to fill the void. This time the stars are all lining up in an unprecedented way. Not only have the banks tightened up, they are fighting for their collective lives, hoping to keep the doors open and the FOIC wolf at bay. This hasn’t happened since the 1980s, when there was a complete meltdown of the banking system, involving thrifts, which required federal government to step in with a $200 billion bailout. That now looks like pocket change.”
Those are powerful words and right on target. As previously reported on this site, being a Factoring Consultant is one of Yahoo’s Top 10 Professions for 2009. Factoring has become the financing tool of choice and now is your time my fellow readers to participate in the Nirvana.
You should look at these tough times in our economy to take action, ramp up your marketing efforts, spread the word and thrive. In this struggling economy it’s easier than normal to make excuses and put things off. I urge you to take action as the article states, this recession may just be paradise for some.
Take action and do the right things right. You are in the right place at the right time!
Contributing writer, Michael Ponomarew, brings with him more than 24 years of experience in entrepreneurship, marketing, and business management. Mike can be reached at mikep@millenniumfunding.com or by calling 888.652.8298 ext. 45.
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