After years of watching the Factoring Market being slowly whittled away, there appears to be a push along several fronts to expand the reach of Factoring in the U.S. New Factors (and a couple of established players) are entering previously ignored niches. Other Factors are extending their reach deeper into traditional industries. A Bank Factor recently closed a Factoring transaction that will fund in excess of $250,000,000 annually! That size deal was previously only heard of in Apparel, Textile and Furniture circles. Multi-million dollar monthly volumes are rapidly becoming commonplace as the divisions of the large, diversified finance companies and banks gain acceptance with middle-market borrowers. Many other Factors are pushing the edge of the envelope in the other direction, dropping down to once again focus on clients with less than $100,000 in annual sales. While these produce low levels of income, they also offer higher yields and lower risk. Specialty Factors are popping up in standard Industries like Temporary Nursing and Transportation, offering added services to appeal to their smaller target market. In addition to Construction and Agricultural Products, Factors are showing up in previously ignored industries as varied as Auto Insurance Claims and Legal Services. All of this expansion is finally beginning to reverse the shrinking effects of the last few years. Firms offering substitute financial products had been skimming off some of the Borrowers previously reserved for Factors. One such firm is American Express. Their Secured Line of Credit offers working capital to small businesses using a consumer oriented credit approval model. As long as the owner has a credit score above some pre-determined number, the business gets the line of credit. Other, non-financial institutions have also taken their piece of the rock. QuickPay programs launched by various Customers of Factoring clients, such as CH Robinson, the nation's largest Transportation Broker, have reduced the pool of A/R for Factors. If you enjoy history as much as I do, then you know that as a Market becomes saturated, the profit margins for the 'bread & butter' products goes down. I think this phase has already taken place. Next, the Industry participants react by expanding the Market in every direction possible. For a while, margins go up again for these pioneering firms. I think there is enough proof to show that the Factoring Industry has reached this point. How far it will go and how long it will last is partially determined by market forces, and partially by the drive and creativity of the participants themselves. One thing is for sure: Factors possess a lot of both. I look for some good times ahead. Especially as we enter the best time of year. Thomas G. Siska Managing Director FactorHelp Inc. The INTERNATIONAL FACTORING ASSOCIATION (IFA) is holding a series of Training Seminars this October at the Monte Carlo Resort & Casino in Las Vegas. Here's what past attendees had to say about the Seminars: "Thanks for the candid answers to questions. Freely sharing information is the best thing about the IFA and its functions." "The many years of experience are very obvious in the knowledge exhibited (by the presenters)." "Very informative. Every question I had was answered." Register now for any of these Courses at www.factoring.org This course is targeted to Business Owners, Sales and Marketing Managers, Salespeople, Brokers and other individuals involved in Business Development. The Training will be dedicated to: • Basic Sales Tactics • Time Management • Geographic Management • Resourceful Tools to enhance performance The Course will also address: • How to prepare a Marketing Plan based on the firm's and your individual 'strategic advantages'. • How to carve out a niche that you can 'own and protect'. This is not a 'one size fits all' Training Course. Each individual will learn how to assess the path that is best for them and their particular situation. The key is to separate yourself from the pack, not join in the 'herd mentality'. The PRESENTERS are Thomas G. Siska, Managing Director of FactorHelp.com and Peter Aransky, Regional Vice President of The Hamilton Group, Inc. Tom designed and managed Riviera Finance's first national Sales & Marketing Program, vaulting it to #1 Market Share. Riviera's success lead to the Factoring niche's national acceptance as a mainstream financial option for working capital financing. Peter, as National Sales & Marketing Manager, successfully led Oxford Capital's growth strategy to the point where it was acquired by CIB Marine Bank. This course is designed for individuals with some knowledge of Factoring and who are engaged in the Underwriting or Credit function. This Course will cover: • The Six Cs of Credit • Financial Statement Analysis • Financial Ratio Analysis • A/R Analysis • Debtor Credit • Credit Information Resources The PRESENTERS are Debra Wilson, Senior Vice President of Vertex Financial Corporation and Wade Hladky, Chief Credit Officer of Gulf Coast Business Credit. This Course is designed to educate operations people from Business Owners to those with daily account management responsibilities. The Course will cover: • Purchase Order and Contract Language • Invoice Documentation • Proof of Delivery or Acceptance • Notification & Verification • Debtor Approvals • Other A/R Issues The PRESENTERS are Jay Atkins, CEO of Bibby Financial Services, Inc. and Darla Auchinachie, formerly holding positions of Chief Operating Officer and Operations Manager for various Factors. This is a Forum for Owners, Presidents and other Senior Executives who run Factoring Organizations to discuss issues facing the industry and effecting their firms. The Case Studies & Topics being discussed are: • Fraud Issues • Client Industry Selection • Legal Issues • Globalization • Competition from non-Factors This is an Open Forum discussion and networking event specifically designed to bridge communication amongst Senior Industry Executives. Register now for any of these Courses at www.factoring.org Lenders' Podium is pleased to present this popular factoring conference. It's taught by attorney Robert A. Zadek - recipient of the Commercial Finance Association's "Educator of the Year" award - and one of the leading factoring experts in the US - who represents factors across the country. Mr. Zadek's information-packed 2-day course is designed to help novices and seasoned factoring professionals, attorneys, and accountants build and strengthen their factoring know-how. To register or to receive a detailed brochure, call us at 888-FIN-WORD (346-9673) or visit us online at lenderspodium.com. Register a month early and save $300.