What is expected of the receivable factoring referral source? As a direct funder, we have requirements of our factoring brokers. Our brokers make monthly residual income and for that, certain things have to be done. The basic minimum requirement is to introduce a potential client to us and to complete/submit the necessary broker agreement. Once that process is completed and the transaction closes the broker has qualified for his/her fee and once payments are collected from payers, fees are distributed. The question here is “Should the factoring broker be satisfied with this?” If a referral source is to be successful that individual must look after, or nurture the prospect. It should always be noted that the broker is the first line of … [Read more...]
Social Media: Worth the Time for Factors?
Factors and brokers know that time is everything when it comes to factoring. In order to find and close deals, connecting and following up with a lead quickly is essential. Marketing is an important part of growing any business. That’s why factoring companies often devote a substantial amount of time to marketing, advertising and branding efforts. Social Buzz Social media seems to be the new hot thing when it comes to online marketing—after all, there is a huge audience available, it’s targeted, and it is about as cheap as it gets. Current marketing research from HubSpot shows that social media produces double the leads of trade shows or pay-per-click advertising. Also, companies that generate over 1,000 Facebook likes are also likely to … [Read more...]
Asking the Right Factoring Questions
Everybody has an opinion as to how factoring works and the best method to fund deals. Many of the articles I’ve written in the past try to assist the broker and factor from both the sales and operational side of the equation. Is there a magic formula to use to get more deals closed? We all know there is no secret that will land you more deals, but positioning yourself, asking the right questions and using common sense will sure go a long way. Unlike a traditional bank loan which requires collateral as security, factoring typically involves advancing funds through the purchase of an invoice. The invoice is an instrument that represents a promise from one party to pay another for delivered goods or services. No risk at all associated … [Read more...]
Six Tips For A Beginning Factoring Consultant or Broker
If you are new to the factoring industry or are considering becoming a factoring professional, this article is for you. I have been involved in the industry for a decade and through the years have seen a number of consultants do well. However, I have also seen a large number of consultants leave the business – unable to make ends meet. Many of those consultants made critical mistakes that could have been easily corrected. These tips are intended to help you avoid making those mistakes. Tips For Starting as a Factoring Consultant or Broker Tip #1: Know your product This is the cardinal rule for success in any industry. You have to know your product, and know it well. However, most beginning consultants don’t spend enough time … [Read more...]
Common Sense Advice for Factoring Brokers
One of the reasons why I enjoy working in the factoring industry is that almost every day presents a challenge when it comes to looking at prospects and finding new ways to close a deal. As great as that sounds we all know too well that most prospects do not make it past the application review to the due diligence process. In many cases we find the applicant needs some other type of financing or they have some past derogatory issues that cannot be cured. … [Read more...]
How To Forecast Your Factoring Broker Revenues
In this article you are going to learn about a simple technique to forecast future revenues as a factoring broker based on your existing portfolio of prospects. This technique is useful because it allows you to determine, at the beginning of a month, the approximate revenues that you will earn from your efforts. And more importantly, it helps you evaluate whether your sales efforts are working as well you’d like. Setting up Revenue Tracking This method of forecasting is based on the simple premise that … [Read more...]
Medical Factoring Wears Many Hats
Those of us that call ourselves medical factoring companies may in fact be quite different from one anther. Throughout the years certain niches have been serviced by finance companies all of which are called medical factoring but each focuses on dissimilar asset classes. This discussion is designed to identify these different asset classes within the framework of Medical Factoring, and to provide the broker with a clear understanding of how to find the right financial institution for each. Medical Factoring Wears Many Hats First we can begin with an easily understandable type of medical practice called “dentistry.” Dentists bill the typically recognizable insurance carriers that are associated with healthcare plans and payments. … [Read more...]
A Factoring Thank You For 2012
What makes the factoring business enjoyable? Don D'Ambrosio shares his answer in this year end thank you. Wow, time flies and we are looking at closing out another year. Many articles this time of year tend to focus on reflection, comparing estimates to actual results and anticipating the New Year. This year I would like to take a slightly different approach. … [Read more...]
Challenging Changes in the Factoring Business
A tough economy, increased competition, and new technology are some of the challenges (and opportunities) being faced in the factoring business. We recently talked with Jeff Callender, President of Dash Point Financial, to get his insights on significant changes experienced by factoring brokers and companies. Jeff answered two important questions and you'll enjoy his straight forward answers! … [Read more...]
Factoring Transactions: How To Know When To “Cut Bait”
Time is money as the expression goes and successful factoring consultants have to allocate time and resources judiciously. Identifying when a potential factoring transaction is viable for a funder to look at and discarding the ones that make no sense are decisions that need to be made regularly by consultants. Are all factoring transactions worth pursuing? The answer to that is a resounding no. So, when and how do we “cut bait” and go on to the next? … [Read more...]