Don’t let the term medical receivable fool you. The rapid growth in home health care is creating opportunity in the factoring industry similar to traditional staffing. According to a (not surprising) 2010 AARP survey, 9 out of 10 older Americans said they’d rather be cared for in their homes than in a nursing home. As the baby boomer generation ages, Medicaid had to evolve to meet the needs of this large demographic. The Affordable Care Act (ACA) introduced a number of new incentives that made it possible for seniors and the developmentally disabled to receive care in the comfort of their homes, rather than moving into nursing home facilities. The ACA created new options and incentives to encourage states to provide home and … [Read more...]
How to Get More Leads in the Factoring Industry
Looking to get more leads this year? We get it. The factoring industry is not always easy to promote. There are so many avenues a factoring company can take in order to appeal to potential clients. It is important to take into account all possible industries when you are promoting your factoring business. Every customer that comes to your site wants to feel included and have their voice heard. Just think if you were a small business owner looking for funding, what would speak to you the most? It might not always be easy to do, but it’s crucial to getting the leads that your factoring company wants. Don’t worry, you won’t have to think too hard. We have complied a list of best practices for increasing leads as clients come in … [Read more...]
What Now? Moving Forward in the Factoring Business After Being Defrauded
Behind every successful entrepreneur there are A LOT of failures, especially in the world of factoring. Being defrauded is a part of the factoring industry and it’s only a matter of time until it happens to you on some level. However, there’s a difference between coming out on top and going under. Here are some ideas on how to deal with being deceived and what to do when you find yourself asking, “What now?” (This article is a follow up to Protecting Yourself From Liars in the Factoring Industry - Part 1) Add it to your business plan We know—this sounds a little crazy. But calculating losses into your expenses before they even happen is a smart idea. Think of this as your ‘rainy-day’ fund: just like you wouldn’t go into retirement … [Read more...]
Protecting Yourself from Liars in the Factoring Industry
It’s no surprise to anyone in the factoring world that fraud is always a risk. If you ask any factoring company owner, it’s not even a matter of “if,” but, “when.” As much as we want to believe that all of our clients are honest and full of integrity, the truth is: some just aren’t. While most factoring companies go through very thorough measures in order to protect themselves, no business is completely immune. When there are hundreds and thousands of dollars at stake, what’s the solution? Unfortunately, there isn’t one—unless you want all of your potential and current clients to take lie detector tests—which probably won’t be great for future business. However, if you know what to listen and look for, it’s possible to avoid being scammed … [Read more...]
Factoring Concentrations – The Good And The Bad
Risk Management. Every factoring company in our industry knows the importance of properly evaluating their portfolios. Whether it’s factoring, insurance, mortgages or any other type of lending, mitigating losses is vital for every company’s survival. Just a few years ago we saw firsthand how the mortgage meltdown crippled the entire global economy due to lack of controls and poor risk management. In the factoring community the same holds true. Every factor conducts their due diligence using a specific set of guidelines that allows them to protect their security interest in the receivables of their clients while allowing enough room to generate new sales. In many ways it is a balancing act between sales and underwriting. The sales … [Read more...]
Projecting Your Success In The Factoring Industry
By reading the headline of this article one would assume that I will be expressing pearls of wisdom about how to become an instant success in the factoring industry. It’s really easy, right? All you need to do is to acquire some capital either through a bank or investor, fund some invoices and walk your way to fame and fortune. Whether it’s a new factoring company or any startup, one of the easiest things to do is to create an excel spreadsheet with some basic assumptions and just double and triple income for the next few years. We recently had a recent startup visit our office looking for capital. Although they had been in business for less than a year I requested a set of projected financial statements including a profit and … [Read more...]
Fighting An Uphill Battle In The Factoring Industry
Have you ever heard the saying that perception is reality? Although I’ve written tons of articles, spoken at numerous SBA and financing workshops while preaching the benefits of invoice factoring, I’m still amazed about how our industry is perceived in the finance industry. Those of you in the factoring industry know what I’m talking about. It’s the negative stigma associated with invoice factoring. So often I’ll be attending a networking event where a CPA will tell me that he consistently advises his clients to stay away from factoring and that they should only use it as a last resort if they need cash. Then there are the small business owners who don’t even know what invoice factoring is or how it can benefit their cash flow. Invoice … [Read more...]
The Straight Truth About Invoice Factoring
Whenever you hear someone say they are going to give you the straight truth about a person or particular subject it usually isn’t good news. In a world where we are inundated with posts, tweets and instantaneous information it’s very easy to only get the information people want you to hear. When it comes to the factoring industry it’s very easy to get roped into thinking that it’s just about getting some capital, advance on receivables and make huge returns. What is the actual truth about the factoring industry? Anyone who works in this industry is entitled to their own opinion therefore, I will go on record and say that the views below are only mine based on my experiences as a broker, funder and due diligence coordinator. Truth #1 – … [Read more...]
How To Select A Market For Your Factoring Company
As far as I can tell, every factoring company is an expert and is also the best in the market when it comes to transportation, staffing, and security guard deals. Everyone offers the best terms, service, and turnaround times. At least, that is what they claim. Unfortunately, from a client’s perspective, there is little difference between factors. They all offer similar plans with similar benefits. So, factoring companies fight tooth and nail for every deal in these industries. However, every year, new factoring companies flock to those industries because they are coveted by factoring companies. In doing so, they face brutal competition from more established and better funded factoring companies. They usually lose. In reality, they … [Read more...]
Top 7 Factoring Investor Articles of 2013
2013 was certainly an active year for the factoring industry. Given the economic roller coaster, it is no wonder that more and more companies were inquiring about invoice factoring services and seeking help from factoring consultants. Each week Factoring Investor publishes free content – all designed to help you in the area of factoring accounts receivables. As 2013 comes to an end we wish everyone a Happy New Year! To help get your 2014 off to a productive start, we share with you this list of the... Top 7 Most Read Factoring Business Articles on FactoringInvestor.com Six Tips For A Beginning Factoring Consultant or Broker Wondering why some factoring consultants fail and others succeed? Here are 6 tips for starting as a … [Read more...]