Factoring Company Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Factoring Company Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Factoring Company business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Factoring companies are extremely important for most businesses that conduct manufacturing or are engaged in large-scale inventory transactions. Although there are many alternatives to factoring invoice, especially merchant advance account services, these companies are still very popular with businesses that have unique cash flow needs and large invoices that need to be financed on an ongoing basis. Most factoring companies are able to generate substantial gross margins by providing the specialized lending services. In most cases, there is a limited amount of recourse that a factoring company has when they purchase an invoice from a third-party. However, provided that an appropriate credit manual is developed – these companies are generally able to remain profitable in all economic climates. The barriers to entry for new factoring company are somewhat high given the large amount of capital required to start these businesses. Within the factoring company’s plan, a well developed three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page should be developed to showcase to a potential lender or investor the anticipated financial results of the business. Most banks and lenders are generally willing to provide a line of credit to a factoring company in order to to acquire invoices at a discount. Generally, a factoring company receives a fee equal to 10% of the fact invoice provided that it is paid within a 90 day period.
It is also imperative to develop a factoring company marketing plan. This marketing plan should focus heavily on developing ongoing relationships with companies that are engaged in large-scale manufacturing or product distribution. Frequently, a factoring company will take any booth at a trade convention in order to showcase to the business public its ability to acquire and finance invoices. It should be noted, that certain disclosures regarding lending need to be included as part of the overall advertisements distributed by the factoring company. Additionally, it is imperative these days to have an online presence so that companies can easily find specialized services such as factoring companies. This website should have information pertaining to what industries the company services, hours of operation, contact information, and have developed an ongoing relationship with the business as it relates to factoring invoices.
After the marketing plan and business plan have been developed, a factoring company SWOT analysis should also be created. The specialized document focuses on the strengths, weaknesses, opportunities, and threats that are faced by these businesses. As it relates to the strength of a factoring company, these businesses are generally able to remain profitable in most economic climates while generating very high gross margins from their lending services. For weaknesses, the lending industry – especially as it relates to businesses – is constantly changing. As such, factoring companies face significant competition from other types of financing businesses that specialize in factoring accounts receivables. As it relates to opportunities, a factoring company can continually acquired additional rounds of capital in order to further fuel the growth of the business. Additionally, factoring companies can rapidly expand that the entire United States provided that they have the proper online management systems in place. Pertaining to threats, there is very little about this industry that has changed over the past 50 years outside of being able to work with companies on a nationwide basis. There are currently no known pieces of legislation or regulation that would impact the way that a factoring company conducts business.