I think a summary of my 12 blogs might be useful and will provide you with a place to access and share them all. I will resume answering common factoring questions next week. Your own questions, comments and feedback would be greatly appreciated.
I started to Blog in early April by introducing myself and my belief that when the economy begins to recover, factoring will have an important role to play. It seems like we might be entering that phase now and this time we have an opportunity to do things the right way.
The question I am asked most often is how much does factoring cost?. I had to address that early in my blogging to show that it is not expensive when compared to the alternatives and provides more value than many people think. Too many business owners are confused about the pricing and instead make decisions that are more far more costly with long term negative effects.
Next,I tried to illustrate how simple factoring is; the mechanics, and how the process benefits all the parties involved. Simplicity is a good thing and rare in the world of business finance. Most lenders do a poor job of fully explaining their offerings, but factoring is straightforward.
One of the biggest misconceptions about factoring is that it looks bad to the customers . It is hard to change some peoples’ minds, so I followed that blog with one about WHO should factor and WHY they should factor.
Timing is always a challenging part of starting, growing, and succeeding in business as every industry and situation is different. Knowledge, preparation, and communication are so important. Unfortunately, one of the more common questions I hear is “How long does it take?”
During the early stages of the pandemic I had a lot of calls from newer business owners looking to factor a purchase order and as I explained to them, it’s possible, but more involved than they think. The quick answer is no, but factoring can still be a key component of a great solution.
A key challenge to the upcoming recovery will be to find creative ways for banks and factors to work together. Smaller businesses will need access to working capital to get re-started and they will need help with cash flow to keep them going and growing. Factoring solves both those challenges.
In my most recent blog I gave a few examples of where factoring worked well and made a big difference. I have been part of many success stories, but picked a few of the more interesting ones to highlight. Examples include a restart and rebuild, a rapid growth start up, overcoming mistakes and building for a profitable exit.
Thank you for supporting me during my early days of blogging. I am encouraged and will continue to try to provide you with useful personal insights. I have lots of experience and hopefully some of it will be useful during these uncertain and challenging times. Please connect with me directly if you think of any way that we might work together.