Building Your Directory of Lenders
Though often overlooked in the excitement of launching a new home-based business as a freelance independent factoring broker, one of the most important early tasks associated with this unique business opportunity is to construct your own lenders database. Not only will you develop a solid directory of specialty lenders you can access when attempting to source financing for “difficult” deals, but by visiting the websites of the various lenders, you will dramatically expand your industry knowledge, pick up marketing tips, and sign up for valuable newsletters.
Where to Locate Lenders for Your Directory
Locating factors and other lenders that specialize in non-traditional business finance is easier than you think. To get started…
- Use Search Engines: Use DuckDuckGo.com or Google.com to search for word strings such as “commercial factoring Atlanta” or “invoice factoring New York”. Search such terms city by city and click the link to display the lender’s website. We favor DuckDuckGo.com for this task as it displays more “pure” listing without the ads, user tracking, and bias of Google and you will build your list quicker.
- Visit the International Factoring Association’s website at www.factoring.org and under the “Members” menu item, use the search form to display the list of members. Using this search form, you can even display factors by specialty niche.
- Visit the Secured Finance Network’s website at www.sfnet.com and from the Navigation Bar, select MEMBER DIRECTORY > LENDERS/FACTORS to display the directory. There is no direct link from the listing to the factors’s / lender’s website so use DuckDuckGo.com to search for the lender’s site by name.
Building Your Directory in Your CRM
Your directory of lenders will be housed within your CRM (Customer Relationship Manager) and if you have not yet selected a CRM for the task of managing the business development side of your business, we can strongly recommend Pipedrive CRM for this task for it’s ease of use and low monthly subscription cost. You can even request a FREE 30 Day trail of Pipedrive and for more information, click here.
When entering lenders in your CRM, they will be entered as “organizations” and not “people”. Make certain you develop a “tagging system” so you can tag each lender by specialty or niche. This will make the task of finding a lender for difficult deals much easier and more simple when the time arises. Virtually all factors do “plain vanilla” factoring deals. Your goal in building your directory is to include 2 or 3 factors and lenders that provide services in each of the specialty niche areas of factor as discussed in your Factoring 101 training.
Discovering New Industries for Prospecting
One of the immediately evident benefits of building your lenders database is that as you scour the websites of the various lenders, you will likely see many industries of specialization the lender services and if you are like most other new consultants, many of these are industries you never considered as possible sources for new clients. Factors are very creative and are always looking for new sources of business. This often means developing methods to safely finance new developing industries or industries that were deemed to problematic to finance by most. As you explore a lender’s website, keep your eyes peeled for new niches that can foster marketing opportunities.