Become a Successful Factoring ISO
At Bankers Factoring, we understand the reality of being a broker – your time is of the essence, and you need efficient A/R factoring companies to provide factoring lines for your prospects – we are here to make the process streamlined for factoring brokers.
Our owner-employees are here to help both factoring brokers and their business owner prospects. This article provides five tips on how to close more factoring deals as a Bankers Factoring ISO.
Closing the deal as a Factoring Broker
The invoice factoring sales process is hassle-free for the factoring broker with Bankers Factoring. If you can get your prospect to complete the Bankers Factoring application including the needed data, you have done a fantastic job.
We facilitate the transaction for your client and remove the burden from you, the broker. Simply call one of our owner-employees, and they can bring the deal to life. Our professionals work hard to grow your monthly commissions.
Or if they are not ready to fill out the application, and need a little nudge, have them call us. If your client has completed and delivered goods or services and has the A/R aging summary, Bankers can quickly help them.
Factoring brokers are too familiar with deals stalling before first funding. After working the client through the factoring funding process, brokers find themselves without a close and a missed opportunity. That is why Bankers is here to remove these obstacles. The following “Five Keys for Closing More Factoring Deals” are designed to help factoring brokers become more effective with the closing piece of the factoring sales process.
1. Give the Business Owner What They Say They Want, Not What You Think They Need
When approaching business owners with invoice factoring or PO funding facility, it is imperative to listen to what the business owner, the potential clients, are saying they want. Invoice factoring provides business owners with physical working capital, but what it gives them is peace of mind.
Accordingly, listen to their wants, fears, and hopes; before you open your mouth. Word choice and how you communicate the benefits of factoring to the business owner make a dramatic difference.
Research shows people buy to either avoid pain or gain pleasure. What did the factoring prospect just tell you? Do they need us because of the hopefulness of finally getting that new, big client, or do they need Bankers Factoring help because of the pain of unpaid bills and customers taking longer and longer to pay?
Understanding where the factoring prospect’s head is will help you discover your best response. Fear versus Greed (pleasure) is a more honest way to look at the world than the more academic and sterile risk versus reward.
Depending on what the prospect is telling you, the two ways to respond are:
Fear of failure Example: “That $300,000 in outstanding invoices and Accounts Receivable you have? It can be $250,000 in cash in your checking account in 3-7 days if you complete the application now. How would your life change?
No more scrambling for checks on Wednesday to make payroll on Friday. No more vendors hounding you for payment. You can take that 2% discount!”
Hope for the future Example: “Imagine taking on $100,000 orders versus $10,000 orders with unlimited working capital from Bankers Factoring. Bankers Factoring has had clients go from $100,000 to $1,000,000 a month in sales.
Imagine if that was you? How would your life change going from a small business to a real company?”
2. Sell Invoice Factoring as an Exclusive Financing Solution
A/R factoring is genuinely a “one-of-a-kind” financing vehicle for business owners with commercial clients and extended payments terms. More importantly, most business owners are not even familiar with factoring.
Furthermore, after conventional lenders deem their business too risky for financing and give them the quick turndown, the business owner often searches for other solutions and discovers invoice factoring or A/R financing. Accordingly, Bankers Factoring can solve their clients’ needs with a turnkey solution providing working capital quickly.
Business owners that are tight on cash are searching for the type of solution that A/R Factoring brings.
3. Create a Sense of Urgency
Invoice factoring sales involve keeping your client – the business owner – motivated to close now because they need the funding. For example, when your client is stalling, it is advantageous to offer an incentive to increase their motivation and close the deal. Incentives can include enhancing the appeal of your offer with time-sensitive offers or tiered pricing if they think their company is in a rapid growth phase. Keep deal momentum going.
Moreover, a factoring broker is in the position to leverage other prospects by setting an expiration date on the Factoring proposal created from the submitted application because other customers are ready to close.
#4 Less is more: Say your Part, then Listen, and remain Quiet
After delivering the factoring proposal, remain quiet, and allow the clients to respond. Furthermore, the power of silence can motivate the decision-maker to decide now. As the tension builds during the silence, it is more satisfying when you hear the word “yes” to your offer, or, questions as many of the terms in a factoring proposal are brand new to your prospect.
#5 “No” does not Mean you are a Failure
Being a successful factoring broker requires you to have a resilient mindset and not take “no,” personally. Part of this job requires moving forward even after the prospect has told you “no” several times. Why are you getting “No”? Revisit your pain versus pleasure queues and questions. Did you miss something in your probing questions?
More importantly, your training as a factoring broker can set you apart from other brokers because of your confidence and ability to help business owners. Become so skilled in your craft as a factoring broker that you are the expert to assist the business owner with their cash flow shortages.
Be ready to Answer Questions about:
- The Factoring Agreement
- Factoring Fees
- Monthly Minimums & Tiered Factoring Pricing
- A Factoring Credit Line vs a Bank Loan
- Factored Accounts
- The Factoring Contract
- The Factoring Industry in General
- Recourse Factoring
- The Cash Advance Process
For long-term success as a factoring broker trusting these keys is critical. More importantly, the Bankers Training and Education program can accelerate your success as a factoring broker. We can help factoring brokers develop their independent businesses and cultivate strong alternative commercial financing partnerships.
In the changing social and economic conditions accelerated by Covid, the invoice factoring business is a safe and lucrative business that can be done 100% remotely. Bankers Factoring is well-equipped to guide remote factoring brokers as well.