Phil Cohen Interview Courtesy of Factoring Investor

Awhile back, the owner of PRN Funding, LLC, Philip Cohen, was interviewed and featured on Factoring Investor’s web site. Check out a portion of the interview below:

Factoring account receivables is helping health care companies through these tough economic conditions opening the door to earning opportunities for cash flow consultants. FactoringInvestor (FI) caught up with Phil Cohen, Founder and President of PRN Funding, LLC, to fill us in on the specialized niche of healthcare funding.

FI: What transactions will your company consider funding?

PRN: PRN Funding, LLC has a very specific niche in healthcare funding. We provide factoring to vendors who sell goods or provide services to medical facilities. Moreover, our client base consists of medical staffing agencies, private duty home care agencies, medical transcription services, medical billing and medical coding companies and medical supply companies.

FI: How did you get your start in the factoring business?Phil-Cohen-Photo

PRN: Prior to founding PRN Funding, LLC, I spent the better part of a decade acquiring medical transcription firms as a national roll-up strategy. During this time, I noticed a trend. Many of the medical transcription services were well-run firms; however, they were selling their companies because of cash flow problems. Seeing this cash flow problem, I was able to identify an opportunity to help them – accounts receivable factoring. Over time, I’ve been able to expand into other healthcare vendor niches, including medical staffing, medical coding, medical billing and medical supplies.

FI: What unique benefits does your company provide?

Industry Expertise: PRN Funding, LLC understands the unique characteristics of the healthcare vendor industry. We are very familiar with traditional payment terms, industry jargon and day-to-day procedures associated with the healthcare vendor industry.

Extreme Flexibility: PRN Funding offers the utmost in flexibility to vendors who sell goods or provide services to healthcare facilities. Our clients choose when, who, how much and how long to factor their invoices.

No Hidden Fees: PRN Funding does not charge the following:

  • Application Fee
  • Origination Fee
  • Due diligence Fee
  • Legal and documentation Fee
  • Administrative Fee
  • Early Termination Fee

FI: What do you consider the best methods for finding deals?

PRN: Aside from our web site, PRN Funding relies very heavily on our brokers and cash flow consultants to refer us deals.

FI: How do you handle commissions to brokers or consultants?

PRN: We pay our brokers 10% of the fees we make for the life of the deal.

FI: What advice would you give to new professionals just starting out in the industry?

PRN: Now is a great time to get into the cash flow industry. Traditionally, small business owners relied heavily on credit cards to fund their business operations when they were not eligible for bank financing. The current economic situation has recently prompted many credit card companies to drastically reduce credit lines and raise interest rates for their customers who use small business credit cards. As a result, these business owners are in desperate need of a new alternative financing method to fund their business, and cash flow consultants have all of the tools to match those business owners with the appropriate funder.

FI: What is the most common business mistake you see people make?

PRN: The most common business mistake I see brokers make is that they present a lead to us without pre-qualifying it beforehand. It’s important for a broker to accurately assess a prospect’s need for funding and then match it with a funder who understands the prospect’s business model.

FI: Given the current economy, have you made any changes in the way you transact business?

PRN: In light of the changing economic climate, PRN Funding made the decision to branch out into a brand new healthcare funding niche. We formally launched PRN Funding’s home care factoring program in February. We recognized how long it takes for state-funded programs to pay private duty agencies, and we wanted to address the dilemma by offering these companies a factoring solution.

In addition, although there are more business owners applying for factoring as a result of the economic crisis, the quality of some of those applicants has gone down. Therefore, PRN Funding has had to tighten up on our due diligence process. Things that we may have been lenient on in the past, we are no longer able to do so…

Want to learn more? Click here to read the entire Factoring Investor Interview with Phil Cohen.

AR Factoring – An Alternative Funding Option For Small Businesses

Because of their lack of financial sophistication and size, today’s small businesses continue to face the hardships brought on by current economic challenges. Many firms struggle to maintain their bank credit facilities, and securing a new line of credit or increasing a company’s current limit is nearly impossible. So if the lending wells have dried up, what’s a small business owner to do? Capitalize on the benefits of accounts receivables factoring.

Once a small business owner has been approved by an accounts receivable factoring firm, the basic invoice factoring process is as follows:

  1. A small business owner’s customer requests goods or services from the company.
  2. If it’s a new customer, the business owner should request a credit check and approval by the invoice factoring firm. Once approved, the company completes the service or delivers the goods.
  3. The business owner issues an invoice, reminding the customer that their receivable has been sold to and will be collected by the factoring firm.
  4. The business owner submits a schedule of accounts for purchase to the factor, including the supporting documentation (purchase orders, invoices, time-sheets, etc.).
  5. Upon verification of invoices for pre-approved customers, the A/R factor will advance funds within hours.
  6. The factoring firm provides all accounts receivable and collections services as required.
  7. In most cases, the customer makes payment(s) directly to the factoring company’s lock box.
  8. Upon receipt of the payment, the invoice factor remits the difference (reserve) between the collected amount and the advance, less the discount fee.

It’s easy to get things started. In most cases, the owner needs only to complete a brief application and present a current accounts receivables aging report to begin the process.

As if a quick approval process wasn’t good enough (banks can take months to approve a loan), there are numerous additional reasons why factoring invoices is an attractive alternative financing option for small and medium-sized businesses-the first being that entrepreneurs with less-than-perfect credit can qualify for financing based on their customers’ creditworthiness. This is simply not the case when looking for a bank loan. Traditional lenders review the applicant’s financial strength in combination with the company’s operating history before they are willing to extend credit.

Furthermore, healthcare invoice funding also gives business owners the ability to offer credit terms to their customers. Especially in today’s economy, customers appreciate the value of having a 30-day grace period to make a payment. Because a business owner receives up to ninety percent of the invoice upfront each time he/she factors, their cash flow remains unaffected by the net-30 terms.

Additionally, accounts receivable factoring helps owners build their company’s credit. Once an entrepreneur begins healthcare factoring and has adequate cash flow, he/she is able to pay vendors on time, establishing a good credit history with them. This makes it so much easier for business owners to get credit from other vendors and increases their chances of borrowing from bank in the future.

All in all, invoice funding instantaneously relieves business owners from many of the stresses involved with managing working capital. The ongoing factoring process is straightforward and easily adaptable. Accounts receivable factoring gives small business owners the ability to control their company’s cash flow as the business grows, while simultaneously improving their creditability.

**NOTE: This article is a re-printed version of what was originally written for and published on eZineArticles.com as well as FactoringInvestor.com.

Invoice Funding Question – Should Medical Equimpent Companies Factor Their Invoices?

This article was recently published on PRN Funding’s web site, however, we thought the medical equipment business owners who read The Factoring Blog would find it useful. After reading it, please let us know your thoughts!

Securing a line of credit in today’s economy is still a difficult task for most start-up companies and small businesses. Specifically, medical equipment companies that sell to physicians’ offices, medical clinics and other healthcare facilities are struggling to qualify for traditional financing. However, there is a reliable financing option available to medical equipment companies-accounts receivable funding. Not sure if your company would benefit from medical equipment factoring? Ask yourself the following questions to find out…

  1. Do you have a profitable medical equipment business that is sometimes short on cash? If you answered yes, then selling your medical equipment invoices to a factoring firm is definitely an alternative financing option you should consider. In short, medical equipment funding companies specialize in filling cash flow gaps. Specifically, invoice funding companies provide a steady stream of cash flow coming into your business. Therefore, you won’t have to worry about having enough cash on hand to meet day-to-day payment obligations.
  2. Do you provide medical equipment to creditworthy customers, but they require you to wait 30, 60 or even 90 days for payment? If you answered yes, then using a medical equipment funding company would definitely benefit your business. Oftentimes, healthcare providers (physicians’ offices, medical clinics, hospitals and/or nursing homes, etc.) have to wait months to be reimbursed by third-party insurance companies. In an effort to help manage their own cash flow a little better, healthcare providers oftentimes stretch out their payables to their vendors (i.e. medical equipment companies). When you factor your medical equipment receivables, the funder advances cash within 24-48 hours after you issue an invoice, so you no longer have to wait weeks or months for your customers to pay you.
  3. Are you spending too much time tracking and collecting your medical equipment accounts receivable? If you answered yes, then you should consider utilizing an invoice funding company because the account managers at a medical equipment factoring firm will monitor your invoices and collectables for you. Allowing a funding company to manage your invoices frees up your time to focus on what’s important-The day-to-day management and growth of your medical equipment business.
  4. Have you recently missed a growth opportunity because your cash was tied up? If you ever had to turn down a new customer because you didn’t have enough cash on hand to pre-order medical equipment and/or products for a new customer, then once again, you should consider using a medical equipment invoice funding company. As long as your business is generating new and valid invoices, the factoring firm will continue to advance you cash on those invoices. With a constant stream of cash always coming into the business, you will no longer have to pass up on new business opportunities.
  5. Are your receivables available to be collateralized? When looking for any kind of financing, it’s important that your receivables are not already pledged as collateral for another line of credit. If another funding source has already placed a lien on your medical equipment company’s receivables, then it’s as if they already own the rights to your invoices. In other words, if another funder already owns your company’s invoices, then a new factoring firm cannot buy them.

In conclusion, if you are a medical equipment business owner who is considering alternative forms of financing, and you answered yes to any of the above questions, then you should strongly consider invoice factoring as a way to improve your company’s cash flow.

Why Temporary Nurse Staffing Agencies Make Great Candidates For Invoice Funding

PRN Funding’s president, Phil Cohen, recently published an online article entitled: Why Temporary Nurse Staffing Companies Make Great Candidates For Factoring, which FactoringInvestor.com re-published. The nurse staffing factoring blogging crew wanted to share the well-written article with our nurse staffing agency owners…

There are two instances when a temporary nurse staffing agency could encounter a bit of a cash flow crisis.  The first is when the agency is just starting out, and the second is when it hits a period of rapid growth.  To a bank looking at a loan application, neither situation is attractive.  On the contrary, to some factors both of these situations might sound very appealing, and this article explains why.

When a nurse staffing business is just starting out, it lacks two vital attributes for a bank to consider it as a good loan candidate.  First of all, a startup staffing company does not have any tangible assets with which to secure a loan.  In fact, the company’s primary asset is its nurse staffing accounts receivables, which unfortunately is not concrete enough for a bank because those can disappear quickly and without notice.  Banks look for assets that are more tangible such as real estate, machinery or equipment—something physical that they can place a lien on wherever it goes so that in the event of default, the bank can still lay claim to and liquidate that collateral.

On the other hand, there are some nurse staffing factoring firms that are willing and able to work with startup nurse staffing companies.  Rather than loaning money, factors provide cash based on the quality and liquidity of a temporary nurse staffing agency’s assets, specifically their accounts receivable.  In the event that a nurse staffing agency was to go out of business, a factor can continue to collect on invoices that were issued previous to their closing up shop.

The second area that could prevent a new nurse staffing agency from obtaining a business loan is that banks provide loans on the basis of a company’s historical financial performance rather than its potential for success.  Temporary nurse staffing companies who are just starting out have no financial history, which is viewed by a bank as just as risky as having a bad one.  Moreover, banks traditionally will not consider loaning money or extending credit to companies who have been in business for fewer than three years because of the high failure rate for new businesses.

Once again, some nurse staffing factoring companies have a different approach to funding new businesses and are not so easily swayed by the fact that they are just opening their doors.  For starters, factors consider the quality of a nurse staffing company’s accounts (the credit-worthiness of their customers and the validity of their invoices) which allow them to provide funding even when the company is new.  Nurse staffing factoring firms see a different picture when investigating the credit-worthiness of their clients’ customers.  As long as the client is staffing nurses in good paying medical facilities, and the factor is comfortable that they will get paid for the invoices that they buy, the actual agency’s credit becomes a minute detail in the grand scheme of things.

As I said previously, another time when nurse staffing agencies find themselves in need of cash is during a rapid growth period.  For example, a temporary staffing company may have landed a contract with the area’s biggest hospital, and they need to hire and staff an additional 20 nurses immediately.  The agency might have enough money to recruit nurses to fill the demand, but it might not have enough readily available cash to pay their nurses once they have completed their shifts.  This situation is quite common in the nurse staffing world because business owners are expected to invoice and make payroll on a weekly basis while the medical facilities they staff regularly can take up to three months to pay for those shifts.

Now let’s analyze this situation from a banker’s perspective.  Banks consider a company’s ability to repay a loan based on its historic earnings cash flow.  Unfortunately for our growing temporary staffing company, its previous income and cash flow is much smaller in comparison to its increasing need for financing. Sometimes a nurse staffing company’s previous year’s income is enough to secure a bank loan, that is to say, if the staffing agency wanted to stay at its same operating size.  More often than not, a staffing company goes to a bank looking for a larger loan than what last year’s earnings could justify because they intend to use the loan to double or triple last year’s revenues.  Unfortunately, a bank wouldn’t feel comfortable loaning money to a company based solely on its potential to grow.  Once again, banks look at the agency’s profitable operating history to justify lending.  So the bank lending process eventually turns into a never-ending cycle—the nurse staffing company needs money to grow, but the bank needs to see a history of growth to give out money.

Enter a nurse staffing factor.  Though a factor will look into a growing nurse staffing business’s operating history, it’s not a deal killer if the company doesn’t have a track record of high earnings because a factor is generally more concerned with the future of the business.  A good rule of thumb to remember: banks look to a company’s past to justify approving a loan, while factors look at a company’s future growth potential to justify advancing cash on their invoices.  Going back to our example, the fact that the nurse staffing agency just signed a contract with one of the biggest and fastest paying hospitals in the area means nothing to a bank, but it is great news for a nurse staffing factoring firm.

I hope that the invoice factoring information that I’ve shared with you in this article have helped you realize how hard it is for a new or growing nurse staffing company to be approved for a bank loan.  Fortunately, there is another good alternative business financing option—nurse staffing invoice factoring. Selling their invoices to a nurse staffing factoring firm is a much more lucrative option for agencies who are just opening their doors or who are going through a period of rapid growth.

Receivables Exchange Vs Traditional Invoice Factoring

Eric Eagen wrote an interesting post earlier this week identifying some of the differences between the Receivables Exchange program and traditional invoice factoring. The healthcare factoring specialists at PRN Funding thought it was well-executed, however, we thought it might be helpful to add in some more information in favor of traditional invoice factoring:

Here’s a snip it from Mr. Eagen’s post:

Here are some key differences between the Exchange and factoring:

  1. The Receivables Exchange opens up the sale of receivables to a global community of investors in a real-time auction. Those investors compete to purchase your receivables, lowering your cost of capital. On the Exchange, you have access to many potential capital providers, not just one factoring company.
  2. You have complete control over the terms of your auction. You can set the discount fee and minimum advance amount, as well as the duration of the auction.
  3. You can choose what receivables to sell and when. You can sell one or multiple, and are not bound by the onerous contracts or minimums that come with invoice factoring.
  4. There are no personal guarantees or all-asset liens.
  5. And one more major difference: you are not required to notify your customers that their receivables are for sale. You control your valuable customer relationships.

Here are some of PRN Funding’s responses in favor of traditional invoice factoring:

  1. One could easily argue that thanks to the Internet, business owners always have access to many potential capital providers, not just one factoring company. Simply searching “factoring companies” on Google pulls back more than 1.5 million search results.
  2. When comparing and contrasting traditional factoring firms, entrepreneurs still have a say when it comes to choosing their terms. For example, if they’re only interested in working with a factor who advances 80 percent of the invoice or more, then they can choose to pass up on the factors who do not advance over 80 percent.
  3. Traditional factoring firms comes in all different shapes and sizes, and their funding programs vary across the board. For example, with PRN Funding’s healthcare factoring program, business owners have the ability to choose which invoices to sell, and we do not have any minimums or maximums.
  4. Once again, not all traditional factoring firms will require a personal guarantee or an all-asset liens. PRN Funding only requires a validity guarantee, and we’re able to file liens that are not all-assets.
  5. Finally, there are factoring firms that operate under a non-notification model, whereas a business owner’s customers are not notified that the receivables have been sold.

Of course, when comparing and contrasting working with the Receivables Exchange or with a traditional factoring firm, there are advantages and disadvantages for both. It’s entirely up to the business owner to decided how he/she wishes to proceed.

Gearing up for 17th Annual Factoring Conference

The World’s Largest Receivable Finance Conference is set to be the largest conference yet. Will you be there?

The International Factoring Association’s (IFA) 17th Annual Factoring Conference is set for April 13-16 at the Omni Shoreham Hotel in Washington DC.

There is a jam-packed schedule of exciting and entertaining speakers. Here is a list of just a few of the topics that will be covered:

  • Forecasts for the Future from the Federal Reserve Bank presented by Elizabeth A. Duke, Board of Governors, Federal Reserve System
  • How Technology will affect Business & Finance in the Coming 20 Years presented by Dr. Michio Kaku, Physicist / Futurist
  • Due Diligence Issues presented by Mike Ullman, Esq., Attorney, Ullman & Ullman, PA
  • IRS and Tax Lien Issues presented by Jason Peckham, Esq., Director of Business Development, Tax Guard
  • Current Topics in Transportation Factoring presented by David Jencks, Esq., Attorney, Jencks & Jencks

There are also a lot of fun and exciting events scheduled during the conference, such as a Golf Tournament, multiple receptions and socials. However, the healthcare factoring experts at PRN Funding are most excited about Factoring Jeopardy because the President of PRN Funding, LLC, Phil Cohen will be hosting the highly anticipated game show.

In the IFA’s version of Factoring Jeopardy, contestants will be given the opportunity to pit their accounts receivable factoring knowledge against other players and win valuable gifts and prizes. All categories and questions will be from the field of invoice factoring.

Click here for more info on the 17th Annual Factoring Conference.

Invoice Factoring: Verification vs. Notification

The invoice funding experts at PRN Funding are frequently asked: When it comes to invoice factoring, what is the verification process, and what it the notification process? Watch this video to find out:

Invoice Factoring Notification Procedures

At some point in the beginning stages of a factoring relationship, the invoice  funder will communicate with your clients’ accounts payabale department in order to make them aware of the new factoring relationship as well as give instructions on where to send future payments. This can usually be accomplished with a quick phone call and/or email. In most cases, the factor will send a written notification via fax or email to re-affirm what was discussed over the phone.

Invoice Factoring Verification Procedures

Verification procedures differ depending on the funder and depending on the type of business you operate.

For example, if you run a medical supply company, a good way for a factor to verify the invoices is to view a copy of the signed delivery receipt and/or speak to the person who accepted the shipment to confirm that they are satisfied with the supplies.

On the other hand, if you own a nurse staffing agency, where you are, in effect, providing a service, rather than a concrete good, the verification process will be slightly different. Most likely, factors will verify invoices with signed timesheets and/or periodically speak with a Director of Nursing (DON) at the facility where you staff to confirm the nurses listed on your invoices worked the shifts listed on the invoices.

Some factoring clients are concerned that a factoring firm who notifies and verifies will become hurt their vendor-customer relationship, the opposite is true.In most cases, notification and verification procedures are brief and non-intrusive.

Do you have more invoice factoring questions? Feel free to write them in the comments section below…

‘Old School’ Factoring Broker Marketing Tricks that Still Work in Today’s World

These days, it seems that small businesses and corporations alike are focusing a lot of their marketing efforts on social networking sites such as Facebook, Twitter and LinkedIn. Although it’s important to continuously evolve your company’s marketing tactics so that they are in line with today’s trends, don’t forget to continue to incorporate some of the more tried and true marketing techniques in your 2011 advertising plans. Here are five marketing tricks that will never go out of style…

Hand-Written Notes
Acknowledging that a potential customer is a person, and not just another potential sale is a crucial marketing technique that many salespeople forget in this technology-driven world. Sure, blasting out generalized tweets can help with branding, but imagine how much more effective a hand-written note with a tailored message would be. In the age of electronic automation, a handwritten thank-you note makes a huge impression on a potential customer because it’s out of the ordinary. Don’t be afraid to add a personal touch to your marketing efforts. When done right, the ROI is always much more worthwhile.

Provide Incentives for Referrals
As a cash flow consultant who undoubtedly participates in various factoring referral programs, I’m sure that you understand how motivating it can be to know that there’s a little something extra in it for you when you refer a deal to a funder. Why not pay it forward? Imagine what kind of business you could obtain if you passed some of those incentives onto people who referred their factoring prospects onto you. Whether it’s a cut of your commissions, a small gift or a free lunch, people are more willing to send referrals when there’s “something in it for them.”

Give Away Something for Free
Plain and simple – When you help someone, it creates a natural desire for them to return the favor. Oddly enough, this ‘old school’ marketing technique will work better for you if you are open to using a ‘new school’ tactic. For example, take the time to set up Google Alerts for your clients so you can help stay on top of pertinent industry news they might find resourceful. Then when news articles and other relevant information comes through your email inbox or RSS feed reader, check them for quality and forward them onto the customer. Passing along credible information to your prospects and current clients will help build trust and keep your cash flow services top of mind.

Apply the 80/20 Rule
If the 80/20 rule is true – that 80% of your cash flow company’s business comes from 20% of your existing client base – then it’s important for you to use this old trick to your advantage. Take the time to talk to you existing clients and look over your year-to-year records to help you identify what’s working and what’s not. After all, your current clients already gave you their business once…What’s to say they won’t pick up the phone and call when they have new business?

Network in Person
Don’t be afraid to tell friends, family and colleagues about your cash flow services. You never know, they may be talking to your next big prospect later that day! Sure, you can accomplish this by posting about your services on Facebook or LinkedIn, but real face-to-face conversations leave a more lasting impression. Think about how much easier it is to connect in-person. When you’re sitting across from someone, you can react to verbal and non-verbal feedback cues Whereas, posting something online could go completely unnoticed.

Although it’s easy to get caught up in the social media craze when it comes to advertising your cash flow expertise and seeking out new prospects, remember that there are still plenty of ‘old school’ marketing techniques that continue to stand the test of time. Make sure that you incorporate a combination of both new tricks and old tricks to ensure that you’re covering all of your advertising bases.

**Reprinted from the February 2011 electronic issue of Cash Flow Exclusive.

PayNet Says Small Businesses Are Not Showing Aggressiveness in Early 2011

IFG Network’s invoice factoring blog published some interesting information released by PayNet Inc. earlier this week that the invoice funding specialists at PRN Funding wanted to share with The Factoring Blog’s readers:

First of all, PayNet Inc. collects real-time loan data from more than 200 leading capital equipment lenders, and they shared data that shows that borrowing by small businesses increased by 14 percent in January 2011, compared to January 2010. Initially, it may seem like this is an early indicator that small businesses are growing, however, it’s not as aggressive as industry experts had hoped.

For example, William Phelan, PayNet’s president and founder, thinks otherwise. He was quoted on IFG’s blog, saying: “We are calling it the long-haul recovery.” He further explained that small business borrowing will return to pre-recessions levels for at least another year, maybe two.

Moreover, economic analysts believe that even with zero-percent interest rates, small companies don’t want to borrow money and go into debt until they are certain they have customers and/or demand for their products.

NOTE FROM PRN FUNDING: Small business owners can and should consider factoring as an alternative way to finance their businesses because they don’t have to go into debt to help their cash flow.

Click here to read more of PayNet’s January stats.

How Factoring Brokers Can Achieve Their Resolutions

It is January 2011, which means that the holiday season is officially over, and reality has set in. If you’re a cash flow consultant reading this article, then I’m sure two of your New Year’s resolutions were to land more deals and increase your business, right? Well, there’s no better time than the present to start buckling down and taking the first few steps towards earning those commission checks.

First of all, it’s important to take the time to research and create new goals for the year-then make sure that you meet those goals. I try to keep a few of these principles in mind when setting new goals:

Reflect on 2010.
Analyze your objectives from last year, and work on setting new goals that focus on what you would like to do better this year. Whether last year was a lucrative one for you or not, it’s still a good idea to take a step back and analyze your cash flow business before you set goals for the next year. What worked really well for you and your business last year? What didn’t work out as well as you had expected? What could you have done better? The answers to these questions will help you organize your business plans for 2011.

Visualization is key.
Write down your goals, and put them in a place(s) where you will see them frequently. Putting your ideas on paper surreptitiously turns them into something concrete, which means that it will be harder for you to forget about achieving them. Also, make sure that your goals are specific, measurable and time-bounded. For example, instead of saying I want to land more deals, try writing down I want to land five deals in the first quarter. Be sure to put your list of goals in a place where you will see them often (i.e. the bathroom mirror). Trust me, it is much harder to forget something if you see it in writing every single day.

Stay motivated.
For some, this might mean setting smaller goals along the way to accomplishing your bigger goals. Breaking down your overall goals into bite-sized pieces can make your overall tasks seem less daunting. For others, this may mean taking the time to reward yourself after you have effectively met each goal. Taking the time to celebrate your accomplishments will help you stay motivated to be successful in your next task.

The more you know, the more you grow.
Take some time to examine current trends in the cash flow industry, and especially take a look at the trends in your area of expertise. For example, if your specialty is factoring, take the time to read up on any new developments in that industry. Of course, Cash Flow Exclusive is a great place to start. The articles in the magazine are written by people who have experience in their respected fields, and the articles are packed with worthwhile and useful information. In addition, the International Factoring Association’s (IFA) web site (www.factoring.org) always has the latest factoring industry news.

Build a supportive network.
Another way to help you stay focused on your 2011 goals is to put together a support team with people that you can go to for help and encouragement. Don’t be afraid to reach out to more experienced cash flow consultants and/or factoring brokers for guidance and advice. Try to find a mentor who has worked in the same area as you. Talk to them about their experiences, and learn what they did to become successful. In addition, there is a wealth of opportunities to connect with lenders and other cash flow professionals on the popular social networking sites like LinkedIn, Facebook and Twitter. Remember, we all want you to succeed in this business, so don’t be afraid to ask for help when you need it.

Put it all into action.
Check off your goals as they are completed, start watching your cash flow business grow, and start preparing new goals. The physical act of crossing off a goal after you have completed it will definitely solidify your feelings of accomplishment. After you have finally reached your goals, you will be able to see the benefits of them right away as your cash flow business becomes more profitable. Then it’s back to round one again-creating new goals and new ways to reach them.

Taking a step back at the beginning of every year to evaluate your company’s progress is one of the best ways to ensure the future success of your cash flow business. It forces you to take an active role in developing a thriving company. After all, how can you expect to move forward if you don’t take to the time to study where you have been?

**Reprinted from the January 2011 electronic issue of Cash Flow Exclusive.

Click here to find additional factoring broker articles on PRN Funding’s web site.

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