I have made some New Year resolutions on behalf of Factoring Solutions in order to reposition ourselves from being known as the ethical factoring broker to the rich factoring broker.
Instead of introducing a prospect to the factoring company that we feel is most suited to their needs we are going to take a leaf out of the big boys books and introduce them to three or more factoring companies on the basis that whichever one they pick we will still end up winners.
Before putting in our recommended factoring companies we will contact them first to make sure that they haven’t got the lead from someone else as if they have we will put in someone else instead. It isn’t in the prospect’s best interests but hey we stand a better chance of getting a fee out of it and that’s what’s most important.
At the end of the year we will persuade the client that it’s in his interests to change factors. It isn’t really but we will earn another fat finders fee by churning the deal
One of the most lucrative areas of broking is handling manageaways from factoring companies that want to get rid of a client that they no longer want. In future we will only introduce leads to factoring companies that reciprocate by giving us managaways.
Finally we are going to tie up with an Insolvency Practitioner and insist that if the factoring company wishes to appoint Administrators to any client that we introduce then they have to use our nominated Insolvency Practitioner so that we can earn from that too.
A few years ago the Chief Executive of a factoring company once described me as one of the last gentlemen factoring brokers and that reputation means more to me than the extra income that I could undoubtedly earn if I actually went through with my New Year’s Resolutions so as with my resolutions every other year these are resolutions that will NOT be carried out.
Happy New Year to all my clients and funding partners and rest assured that Factoring Solutions will continue to act only in your best interests and not those of ourselves so we will continue to introduce companies to the single most suitable factoring company.
In fourteen years we have never churned a deal and will not be starting now and if our favoured invoice finance companies don’t use us to handle their manageaways we will still use them anyway and if (God forbid) one of our clients needs to go into Administration the factor can appoint whichever firm of Insolvency Practitioners they are most comfortable with