In recent months I have been writing about brokers who want to start their factoring companies. This is an important topic for brokers since many want to move to the direct funding side of things. Unfortunately, most have unrealistic expectations about their chances of success. They like to focus on the potential positive aspects of the move, such as higher revenues. But they often ignore the obvious risks, such as losing principal or going out of business. Here are six tips that will help you survive your first year as a factor. 1. Double your marketing budget One of the toughest things in this business is getting clients. Due to intense competition, the cost of acquiring a client is very high. New factoring companies often underestimate … [Read more...]
Choosing The Right Factoring Partners
For a factoring broker, selecting the right factoring companies to work with can spell the difference between being successful in the business – and never closing many deals. Yet, most brokers don’t have a well thought out process to choose their factoring partners. Instead, they chose their factors based on the broker compensation package or how well they clicked with their broker representative. While these two criteria are important – they are among the least important criteria to select a factor. Actually, if you select a factor just based on compensation, you could end up losing money. Let me tell you a story. … [Read more...]
Five FAQs That Small Business Owners Ask About Factoring (And How YOU Should Respond)
If you’ve ever had a hard time convincing a business owner why he/she should use factoring, then I suggest you keep reading. I can assure you that if you’re prepared and possess the right attitude when approaching entrepreneurs about factoring, then you’ll be able making commissions in no time. In order to help factoring brokers better be able to sell the concept of “factoring” to incredulous small business owners, here are five common questions that that small business owners ask about factoring and more importantly, five answers to those questions. … [Read more...]
How Factoring Brokers Earn Fees
With numerous factoring courses and factoring books available online, many people wonder just how factoring brokers earn their fees. While factoring commissions are paid in a variety or ways, there are some standards to start with. … [Read more...]
Factoring Brokers – Communication Secrets for Sales, Business and Life
We have the best job in the world! In sales, we get to meet new people every day. We are afforded the gift of learning about different industries almost every day. We get to meet a lot of people from all walks of life. We have it made! … [Read more...]