Contents
Index of Charts
Index of Documents
About the Author
Acknowledgments
Important Notice
Preface
PART 1 The Basics
1 Introduction
For Whom This Manual is Written
My Story
How This Manual Came to Be Written
What’s New in This Edition
2 What Is Factoring?
Factoring Defined
The History of Factoring
How Factoring Works
Types of Businesses Which Benefit from Factoring
The Cost of Factoring
Calculating Profits
Other Services Factors Can Offer
3 What I've Learned about the Factoring Industry
The First Lessons
Why Big Factors Don't Want Small Deals
Why You and I DO Want Small Deals
Small Numbers Add Up
PART 2 Digging Deeper
4 Charting Your Course
Form and Direction
The Plan for Your Factoring Business
5 Bits of Wisdom for the Small Factor
Why You're in the Factoring Business
Factor Small Deals, Broker Big Ones
Keep It Local
Make Your Three Most Common Office Tools Highly
Efficient
Legal Assistance
Start Small and Don't Take on Too Much
Don't Get Greedy
6 Banking and Funds Transfers
Choose Your Bank Carefully
Funds Transfers
Lock Box
7 Money, Money, Money
The Cardinal Rule of Money
How Much Money You Need to Factor
How Much You'll Make
How Much to Charge
Where to Get the Money You Need
8 Co-Factoring
The Discussion Phase
The Drafting Phase
Types of Co-Factoring Relationships
Implementing the New Relationship
Monitoring for Changes
9 Break-Even Analysis
Definitions
A Sample Break-Even Analysis
What Ifs
PART 3 Procedures and Operations
10 Marketing: How to Find Clients
Business Cards
Brochures
Marketing Methods
One-to-One Contact
Media Contact
11 Common Mistakes
Giving Up
Getting Sidetracked
Inadequate Due Diligence
Not Saying "No"
Accepting a Client as a Favor
Being Under Capitalized
Advancing Too Much to Start
Payments Not Sent to You
Poor Follow-up on Late- and Non-Payers
Chaining Clients
Over Concentrations and Lack of Limits
No Structure to Pay Yourself
Making Loans to Clients
Giving Advances on Invoices for Work Not Yet Completed
Purchase Order Funding
Being Rushed
Not Following Your Own Rules
Failure to Plan
Poor Record Keeping
Inadequate Software
12 Reducing Your Risk
Protect Yourself
Trust Is the Name of the Game
13 Due Diligence
What Is ”Adequate” Due Diligence?
Starting Your Due Diligence
Other Tools
Due Diligence Costs
Other Considerations
14 UCCs
What Is the Uniform Commercial Code?
Revised Article 9
UCC Filings
Public Records Search Companies
UCC Search and Filing Service Companies
15 Credit Reports
Dun & Bradstreet (D&B)
Experian
Credit.Net
National Association of Credit Management (NACM)
USSearch
Observation
16 Preventive Maintenance
17 Factoring and the USA Patriot Act
18 Factoring Software
FACTOR/SQL
FactorSoft
Win!Factor
FactorFox
Comment
FactorFox and My “Virtual Office”
19 Record Keeping
Preliminary Steps to Set Up a Client
Documents You Need
Once Under Way
Office Files
Document Stamps
20 A Sample Factoring Transaction
Jones Cleaning Company
21 Bookkeeping with QuickBooks
Setting Up a Chart of Accounts
Sample Bookkeeping Transactions
Reports
PART 4 Enrichment
22 Factoring Resources
Resources for New Small Factors
More Resources
Conclusion
Appendix
About This Series
Three Articles from FactorTips
A Small Factor’s Thoughts about Big Factors’ Concerns
ACH and a Story about Bankers
The Secret to Getting Paid
Glossary
Index
Order Form
|
