Whenever you watch a sporting event whether it’s baseball, football, hockey, basketball or some other sport, the objective is to score as many points as possible to beat your opponent. I usually score really high at my favorite sport--unfortunately it involves golf clubs and a little white ball. The same is true for the factoring business. Whether your company is a startup or a seasoned veteran your goal is to score points in the form of revenues while keeping expenses low and eventually turning a profit. There are tons of marketing strategies, that can range anywhere from hiring a salesforce to execute your game plan, internet marketing, social media, and a myriad of others that will best suit your company. Experience has taught us that … [Read more...]
Finding Some Luck In The Factoring Business
How many times have you read about a new startup and kicked yourself because you had the same idea? I remember when I was in college there really weren’t any big name coffee shops on every corner but there sure were a lot of students hanging out at the cafeteria sipping on coffee while studying. Fast forward a few years later and the idea of Starbucks seems like such a no brainer. When we started our factoring company a few years ago the concept of financing accounts receivable was anything but new. There were many competitors with vast amounts of experience in the asset based lending arena. Prior to jumping into the ring we had diligently written our business plan, thoroughly studied our niche and built a marketing plan with the … [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...]
10 Ways To Start Marketing A Factoring Business Online
You know you need to start marketing your factoring business online but where do you start? The time, cost, and sheer volume of information can be overwhelming – paralyzing even! Don’t despair, here’s your... Ten Step Online Marketing Plan for Factoring Companies Step 1 - Build A Factoring Business Website In the U.S. alone there are over 250 million people or 80% of the population using the Internet (Source: Internet Live Stats) and the first place they go to check something out is an online search. In 2014, websites are the new storefronts! The good news is a website is much cheaper than retail or office space, with great web design options available for under $500. And let's not forget mobile users! A website should be … [Read more...]
The Balancing Act of Factoring Invoices
In past articles I have addressed the need for understanding your client’s business as well as having a consistent set of policies and procedures to ensure you effectively manage the risk of factoring invoices. However, what happens when you run across those out of the box deals that do not fit nicely into your company’s comfort zone? Instead of immediately throwing these deals away you might want to consider some adjustments you can make to mitigate the risk. Although we all like to fund deals that are in our sweet spot in terms of size and industry, I have found that some of our best success stories were with clients in industries that we never would have imagined funding. Some past examples include speech therapists, a startup … [Read more...]
Factoring Business on the Go: 10 Essential Apps for Factoring Professionals
Savvy factoring professionals understand the shifting landscape of business. Customers use mobile technology to engage with your company at all hours of the day and night, from all over the world. Since these tools are readily available, it’s important to use them to your advantage. Below are ten essential mobile applications for staying connected to the most important parts of your business. Add them to your arsenal to take your factoring company to the next level. Stay in touch with clients and contacts. Communication is the key to building a factoring business and serving your clients, so use these apps to follow up even when your desk is 1,000 miles away. • Salesforce1: Salesforce’s comprehensive app puts your lead and customer … [Read more...]
6 Tips For New Factoring Companies
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...]
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...]