Looking For New Factoring Deals? Look Inside First!

Where are the invoice factoring deals?

Whether I’m conducting a cash flow workshop or networking with colleagues, this question seems to come up at least once per event.

With the recent downturn in the economy and banks constricting lending, invoice factoring has become a popular alternative for many businesses seeking capital to expand their operations.

Although factoring has been around for ages, its newfound popularity and low barrier to entry has created an influx of new factoring brokers and funding sources looking to make deals. Having worked in both the insurance and mortgage industries many salespeople contact me inquiring about factoring and where to find new referral business.

So, back to the original question,

“Where does a factoring broker or funding source go to find prospects for invoice factoring?”

From my perspective, there is no magic place or formula, otherwise everyone would have figured it out by now. Here are a few points to consider before you begin to prospect for new clients:

1. Personality

Every person is unique and what works for one may not work for another. Some brokers may prefer speaking in front of groups of people while others are more comfortable with networking groups. Several of our colleagues are extremely proficient with social media or have very popular websites that draw new prospects through ad clicks.

2. Experience

I have found that many successful brokers have experience in a particular industry, which utilizes factoring giving them an edge in finding prospects. For example, we have funded many prospects from brokers in the apparel and transportation industry that had previously worked in those industries.

3. Persistence

Plant seeds. The prospect or business referral you meet today may not connect with you at first but may bear fruit sometime in the future. I cannot tell you how many times we receive calls and emails from brokers, bankers and CPAs that were from events from months and years past.

The bottom line is that your success depends on you. Some factoring brokers may prefer to stay in their sweet spot when looking for new business while others may wish to venture into new areas of opportunity. No matter which course you choose be persistent, be patient and most importantly enjoy the ride.

Don D’Ambrosio is the president of Oxygen Funding, Inc., an invoice factoring company located in Lake Forest, California. For more information, he can be reached at don.dambrosio@oxygenfunding.com or you can visit his factoring company website at www.oxygenfunding.com.

You may also enjoy these additional articles by Don on the factoring business:

Factoring Invoices – Waking a Small Sleeping Giant

Is Factoring Always About the Account Debtor?

Starting Your Own Factoring Business?  It’s Your Call!