How to Run a Small Factoring Business

Looking for a guide that shows how to invest in small business receivables?

Here it is! How to Run a Small Factoring Business is the “nuts and bolts” manual that provides step by step instructions for running a small factoring operation, in which you – the investor – buy invoices from small business clients.

It includes:

• How a small factor can profitably purchase low volume client receivables when big factoring companies can't.

• 24 common mistakes small factors make, and how to avoid them.

• Where to find operating capital.

• Marketing strategies to bring in business.

• Factoring franchises that are available, and help determining if a franchise (or running your business independently) is right for you.

• Options for handling funds transfers, and considerations when choosing a bank to provide the services you need.

• Checklists to follow when booking new clients, tracking ongoing transactions, and releasing accounts.

• How to limit risk using due diligence, routine procedures, and strategies to keep your funds as safe as possible.

• Available credit reporting resources, where to find them, and how to use them.

• Record keeping techniques that assure a smooth-running operation.

• Industry-specific software that is available, where to get it, and questions to ask before choosing a platform.

• A sample factoring transaction that ties everything together so you'll know just what to do and can proceed with confidence.

The Small Factor Series

How to Run a Small Factoring Business is the third book in The Small Factor Series. While each book builds on the one before it, any title can be purchased and enjoyed separately.

How to Run a Small Factoring Business was first published in 1995 as Factoring Small Receivables, which was printed in seven editions through 2007. The current title, renamed to better describe its subject matter, has been completely revised with updates and new material to keep pace with the evolving industry and technology. It is a must read for any entrepreneur interested in invoice factoring who wants to help small business clients improve their cash flow.

Follow this instructive volume, written by an expert in the niche of small business factoring, to confidently begin and run your own profitable small factoring business.

From the Author…

The Small Factor Series is based on two decades I’ve spent working in the factoring industry. I wrote the books to help those entering the industry get it right the first time.

Factoring offers business funding to vast numbers of small business owners who often have never heard of it, and who are unable to obtain a bank loan. Individuals and small companies who provide this alternative business financing through buying invoices offer a much needed service in this (and any) economy.

But buying accounts receivable can be risky for the investor. I want readers avoid the mistakes small factors make when starting and running their business. My books help entrepreneurial investors recognize the risks inherent in factoring, and provide common sense practices and strategies to minimize risk and maximize profits. They also introduce and explain factoring to small business owners who will benefit from this form of alternative financing, instead of just trying to obtain (often unsuccessfully) ordinary bank loans.

How to Run a Small Factoring Business and its earlier versions have been the “User’s Guide” for small factoring companies for many years. I am pleased to present this latest work that provides new resources, updated procedures, plus many experiences from my own business, and put them all together in one book.

-Jeff Callender

Jeff Callender had an unusual start to his career in business. Though he is the son and grandson of businessmen, he began his working life as a pastor. He served three churches in Washington state over 14 years during the 1980s and 90s. While he found ministry rewarding, he realized he had an entrepreneurial spirit which gradually pulled him toward business. He left his career in the church and about a year later stumbled onto factoring. He began as a broker but after numerous referrals were declined only because of their small size, he started factoring very small clients himself. His career as a factor - and as a pioneer in the niche of very small receivables factoring - was thus born in 1994. He has worked with a great number of very small business owners in need of factoring. He wrote his first book, Factoring Small Receivables, in 1995, and since then has written numerous books, ebooks, and articles, and spoken at many events in the factoring industry. His writing and two decades of experience have established him as a leading authority in the niche of small business factoring. His writing style is casual, flowing, and reads more like a novel than business information. If you are interested in learning about factoring, using a factor to improve your company's cash flow, starting a factoring business, or working for a factoring company, his books and ebooks are excellent resources for you. Jeff is the President of three companies he started. Dash Point Financial provides factoring services to small business owners around the U.S. It also provides the nucleus of his experience for writing. Learn more at DashPointFinancial.com. Dash Point Publishing publishes and sells his and others' books and ebooks on the subject of factoring. All his paperbacks are available from Amazon, and all his ebooks are found in the Kindle store. Dash Point Publishing's website provides additional material such as legal documents for smaller factoring companies. FactorFox Software offers a cloud-based database solution for factors to track their client transactions. It has become one of the top platforms for the industry and is used by factoring companies throughout the world. More information can be found at FactorFox.com. Having grown up in southern California, Jeff now lives in Tacoma, Washington with his wife, dog, and two cats. He has a grown son and daughter.