Modern Challenges to Factoring

The way we do business is constantly changing and companies either have to evolve and adapt, or die out—and factoring companies are no exception. In a recent interview with Dash Point Financial President Jeff Callender, he points out several modern changes to the factoring industry.

More Small Factors: Factoring for companies with under $10K per month in receivables used to be a niche, but now there are more and more companies joining the fray. This increases competition, but with more awareness there is also a bigger customer pool.

Sketchy Clients: Because most factoring companies tout that a client’s personal credit history doesn’t matter, Callendar has noticed a trend of “less desirable” clients applying as an alternative to a bank loan. While credit history doesn’t technically matter, factoring companies have to consider the character of a potential client when considering whether to take their business.

More Awareness: The public is more aware of factoring than ever before, and this means they’ll be doing independent research. Often they waste everyone’s time if the factor they research does not suit their needs.

A broker can be the best option, because they have the resources to perfectly match client and factor. Factor Finders is one such broker, and we are experienced in saving clients time and money by eliminating the search process and meeting client’s needs every time.

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