I naively thought that the idea of using a factoring broker was so that companies could capitalise on the expertise of the broker in order to ensure that they got the best deal possible.
Earlier in the week I had a call from a company that had an unhappy relationship with his factoring company and wished to be extricated as soon as possible and placed with a factor that actually lived up to their promises.
Not a problem for us as “We know which factors perform” is our catchphrase so as requested we told the prospect that we would arrange for two of the better factoring companies to contact him so that he could decide for himself which suited him best and we told him who we intended to bring to the party so that he could expect calls from them.
The following day factor 1 reported back to me saying that one of his colleagues had already received the enquiry from another (unnamed) broker and had just been approached by yet another (this time named) broker with the same deal which he rejected saying that he was already dealing with the enquiry.
The second factoring company reported today that they were well down the road with the prospect but had today received the enquiry from yet another broker and when I asked him whether or not it happened to be Mr Named Broker he confirmed that it was.
The prospect obviously thinks that the way to get the best deal for himself is to approach several brokers whereas in reality the opposite is true. We listened to what the prospect had to say and told him to expect calls from the two factoring companies that we thought most suitable whilst the third broker that they approached was punting the enquiry round the market trying to find someone that didn’t have the enquiry already in order that they could earn something from the deal. Not sure about the first / second broker though.
I’m not quite sure what the moral of the story is so I’ll think of one later