Cash flow consultants know that factoring is a great way to ease their clients’ cash flow tensions. However, pairing a prospect with the wrong factoring company could be even more detrimental to your client’s cash flow. Not to mention, sending a prospect to the wrong funder could also damage the relationships you have with your client and the funder. In order to avoid such a catastrophe, it is extremely important for consultants and brokers to know how each of their funding partners’ factoring programs work so they can match their clients with the most appropriate one. The best way to get to know your funders is to ask the following four questions…
One: What is your focus?
In general, factors can be divided into three different operating categories. First, there are large factors that operate nationally and are able to fund clients across numerous different industries. On the other hand, there are some factors that focus their operations in one specific geographic region. These smaller local factors have a home field advantage because their clients like knowing that their factor is literally right around the corner. The last category is comprised of factors that concentrate their funding in one specific niche. (For example, PRN Funding only factors invoices for medical vendors.) These factors’ clients appreciate the fact that their funder understands their specific industry.
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