“Time is money” is a cliché, but also a reality of the factoring industry. Unfortunately, all too often we waste time – and money – chasing prospects and shopping deals to any number of funders without identifying the fundamental issues that will doom a deal before you make the first pitch. Before you invest in any deal you must ask: will any rational funder make this work? Without delving into funder preferences and gray areas, there are five red flags you should look for in any factoring lead you come across: Medical deals with very low dollar amounts Medical factoring in particular is very time and effort intensive. While some medical factoring companies will at least take a look at very small deals, the majority will determine that … [Read more...]
Why Factors say YES when banks say NO
Have you ever heard this from a prospect; "Don't waste your time, I am not bankable?" Did you then wonder why a factor would ever consider funding a company that a bank would decline? If you have, believe me, you are not alone (I get asked this all the time). Let me see if I can help clear this up. Let me begin by defining a strong banking prospect: Prospect has been in business for a minimum of 2 years Prospect has audited financial statements reveal solid profit margins in the previous 12 month accounting period Prospect has steady revenue growth with no "Peaks or Valleys" Prospect's management team is strong with a proven track record of success in the industry Prospect has absolutely no bankruptcies or judgments in the … [Read more...]
Understanding the FEES Principal to Closing Factoring Deals!
One of the most important things I learned early on in my consulting career is in order to generate revenue, commissions, fees you have to be able to follow the "FEES" Principal on the road to closing deals. … [Read more...]