So many authors, including myself, have written about the benefits of invoice factoring explaining how we help businesses in need of working capital. Just type something like, “benefits of invoice factoring” into your favorite search engine and you will find pages of articles telling you how factoring works and why it is the best solution for your business. As the owner of a factoring company I can definitely say that factoring is an extremely useful tool to help businesses grow by unlocking cash in the form of an account receivable. But is factoring a one fit all tool for all businesses to achieve growth? As a featured speaker and panelist at small business workshops over the last several years, I’m fortunate to be given the … [Read more...]
Fast Pay Factoring For Digital Media Receivables
Working with digital media receivables? It helps to know a factoring company that specializes in online deliverables. Meet Jed Simon, CEO of FastPay, in this recent Factoring Investor interview. What receivables will your factoring company consider funding? Jed Simon, CEO: FastPay primarily funds digital media receivables. We’ll advance on invoices signifying completed work including, but not limited to, ad campaigns, creative campaigns and delivered impressions. How did you get your start in the business? While I was responsible for digital media at DreamWorks, I recognized a universal pain point in the digital media industry - many big brands and agencies have onerous payment cycles (Net 90+) that hamper the growth of smaller digital … [Read more...]
The Unique Problems of Construction Factoring (And How to Solve Them)
Construction factoring can be every bit as tricky to navigate as it is lucrative. Ask a factor what industries they can fund, and nine times out of ten they are going to claim they can fund almost everything under the sun - everything, of course, except one little pesky industry: Construction. … [Read more...]
Like Apples to Oranges: Why You Can’t Compare Factors
When the clock is ticking and your business finances are at stake, how do you sift through your options to find the best factoring company? Locating great services for any type of need is challenging, so we often generalize to make things easier: for example, only considering location and cost vs. quality to find a good value. Sometimes this works, and to some extent you may be able to compare factoring companies in the same industry by fees, rates, and contract perks. Choosing a factor based on value is a disaster for your company when the factor isn’t … [Read more...]
What are the Differences Between Payroll Funding Companies and Invoice Factoring Firms?
When a bank loan is an unobtainable financing option for a small business owner, he/she starts investigating alternative funding solutions. Two of the more frequently used alternative financing options are payroll funding and/or invoice factoring. At first glance, the two options may appear to be the same thing. Truth be told, there are many similarities between the two, but there are some core differences as well. … [Read more...]
Factor Finders Caters to Helping Factoring Brokers Succeed
Have a factoring deal but can't find the right funder? Don't lose out commissions! Factoring brokers can turn to Factor Finders to take advantage of a unique opportunity. Nikki Fores, Marketing Manager, explains how Factor Finders LLC is helping consultants succeed in this interview with Factoring Investor. … [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...]
Common Objections Encountered From Invoice Factoring Prospects
Although invoice factoring has become a bit more apparent in business finance today, misunderstandings, fears and objections are still quite common. Being prepared to hear and address objections or questions is the most professional approach to these encounters. Fortunately, the issues discussed herein are the most common concerns expressed by prospects and from my experience in both commercial and healthcare factoring will arise in almost all presentations or conference calls. … [Read more...]
The Factoring Business Notice of Assignment – Never Fund Without It
Real life scenario explains why factoring companies require a Notice of Assignment to fund business invoices in this article from Oxygen Funding. A few years ago we had a factoring business prospect referred to us from a broker that was affiliated with our company. The prospect was engaged in the business of logistics, working with several well known automotive companies. His business was growing and he needed cash flow to hire additional employees and take on more jobs. … [Read more...]
Factoring 101: Don’t Make It Difficult
One thing I love about the factoring industry is that once we remove all the layers of speculation, it really is a straight forward business. People new to the industry, both brokers and companies thinking about using factoring services, have an uncanny ability of making things more difficult than need be. Terms like “hold back,” “reserves,” “advance rate,” and “points” can put people on edge. Add to the fact that just about everyone tries to compare "factoring vs. bank loans" and it is no wonder … [Read more...]