Factoring Firms Being Franchised
How often have you heard the phrase, “the check’s in the mail?” It must be often enough that the market for factoring is growing. And now it looks like the factoring companies are turning into chains.
From the Financial Post in Canada comes a story about franchising of factors.:
“The cheque’s in the mail.” How many times have you heard that? For small business owners and contractors, it’s a phrase heard all too often and it evokes wry grins or agonizing groans, depending upon whom you ask.
Even when dealing with household corporate names, delayed payments are surprisingly common as head offices decide contractors or vendors can wait another 30, 60, or even 90 days for whatever reason. It turns out companies that provide interim financing to these struggling small business owners by purchasing their creditworthy, outstanding invoices — minus a fee — comprise a thriving, if little-known, global industry.
It’s called factoring and it’s worth an estimated $1-trillion a year worldwide, with $100-billion of that in the United States and about $4-billion in Canada ….
This must be a signal of a new trend in the factoring business. If entrepreneurs have come up with this kind of franchising idea, my guess is that you have strong potential for this industry and we will see a growing international scope later on.
But don’t underestimate the value of experience. Facteon, at around 8 years old, caught the curve of this industry early and has the track record to prove it. Plus, there’s personalized service that’s hard to match through a franchised approach.
