“Show Me the Money”: How Do Your Factoring Partners Pay Commissions?

You’ve begun working with a factoring company that handles your leads well. They keep you updated, follow up on a regular basis, and they have successfully closed a deal. Now, you say, it’s time to show me the money…but just how much money will you get? We are not lawyers, and we don’t play them on TV, but we can’t stress enough the importance of thoroughly reading your broker agreement. The agreement should clearly define every question you might have about if, when, and how you are to be paid for your referred leads. Below are just some of the commission questions that you should have answered before you send any leads. Do you get paid for your leads? What are the circumstances under which you get paid? More importantly, are there … [Read more...]

Grow Your Factoring Business with Participation

So you have this great factoring business and all of your efforts are starting to pay off.  Your marketing campaign is generating new leads and your existing clients are growing.  For most businesses this would be a dream come true.  Right? But what happens when your factoring company does not have enough cash to fund new invoices?  It’s almost as if you are in the same predicament as your clients.  You have new business but no capital to grow. One solution called Participation is a great way for you to keep your current book of business and fund new deals.  It’s actually quite simple and very effective for many factoring companies.  A participant can enter into an arrangement where they fund all or a portion of the factor’s invoices … [Read more...]