Authored by Phil Cohen
When planning for your business’s future, don’t forget to consider your cash flow. Steady cash flow and predictable access to capital It’s a truism that business is about people. Your relationships with your vendors, your employees, your customers – they can make or break or your business. But what about your relationship with your factoring broker?
You may not have considered it, but a strong, long-term relationship with your factoring broker can help you achieve your goals. As your partner in obtaining the right funding solutions for your business, we’re invested in your company, and we want to see you succeed. A solid partnership means we can help you most effectively, and you get the most reliable support possible as your business grows and changes. Below, we’ve put together our best tips on working with your factoring broker to ensure you achieve your goals.
Do’s: How to Build Your Relationship with Your Factoring Broker
Here’s what we need from you for our partnership to be strong.
1. Communicate Clearly and Often
Whether it’s friendship, marriage or business, clear communication is key. When you’re working with your factoring broker, it’s critical to share your expectations and preferences if we’re going to find you the right solution. The more open and clear you are, the better equipped we will be to find the right factoring partner for you. Be sure to communicate with us about:
- Your financial situation and geographic location
- How much you bill each month
- How long you’ve been in business
- Your customers’ profiles and credit history
- Your specific challenges
Sharing these details helps us ensure we can find the best match for your needs, and the more information we have, the better the match will be.
2. Lean on Your Broker’s Expertise
You don’t need to be a factoring expert – that’s what you have a broker for. Lean on your factoring broker’s expertise, including experience with your particular industry, to find the solutions that work for your needs.
At Factor Finders, we offer specialized expertise in a variety of industries, which helps us understand the funding challenges you’re facing. We can even guide you through the finer details, such as fees, advance rates, and payment terms, so you can make an informed decision.
3. Be Responsive
The best factoring brokers are quick to respond to your questions and concerns. In fact, we pride ourselves on our speedy response times. For the best results from our partnership, try to ensure you’re responsive, too. Timely responses and updates help us match you with potential factoring partners quickly, when ensures you get the funding you need when you need it.
While we know you may not be able to answer a call on the first ring, like we often do, try to respond to your broker on the same day, or faster if you can. You’ll keep the momentum going by staying engaged in the process.
4. Provide Feedback
Factoring isn’t one-size-fits-all, and it isn’t one-and-done, either. Your factoring needs may change as your business grows and evolves, and we want to make sure you’re continuing to get the support you need. Keep in touch with your factoring broker and share feedback about the services you’re receiving. If they’re working out, great! We love to hear it. And if they’re no longer serving you, we want to know that, too.
Keeping us posted on your progress and factoring experience ensures you continue to receive the best service for your needs, and if your needs change, your factoring company can change, too.
Keep It Strong by Avoiding These Don’ts
As helpful as it is to know what to do, it can also be useful to know what not to do when working with a factoring broker.
1. Don’t Shut Us Out
If you’re having cash-flow problems, you might be having some big feelings about it. You may not want to share your financial information or discuss solutions you’ve tried in the past. Rest assured that we are here to help, not pick apart your previous business moves. Every business experiences growing pains, and it’s our job to help you find the right factoring company for your needs. Withholding details such as overdue taxes, unpaid invoices, or even pending lawsuits only makes it more difficult for us to help you.
2. Don’t Wait Until There’s a Problem
Many businesses only reach out to their broker when something goes wrong. While we’re happy to help you resolve issues, it’s far better to keep an open line of communication with your factoring broker. Regular check-ins can event prevent potential problems, because it means we can help you find a better fit before it becomes a concern. Keep that communication flowing and you’ll enjoy a smoother experience.
3. Don’t Ignore the Fine Print
If you’ve never worked with a factoring broker before, you might be inclined to rush through the process to disguise that “beginner” feeling. But it’s truly important to read all of the fine print when entering a factoring contract, because you need to know the nuts and bolts of your agreement to ensure it’s the right fit. We can match you with a factoring company, but if the terms don’t work for you, let us know. We’re only happy when you’re satisfied with your factoring experience.
The Bottom Line
Strong relationships are the foundation of a successful business – and that includes your factoring broker. We hope the steps above clarify what it takes to build a strong relationship with your factoring broker, so you can maximize the benefits of factoring.
Contact Factor Finders to connect with your factoring broker and start building that relationship today.