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A Publication of The International Factoring AssociationMay/June 2013 VOL 15/ No. 3SALES &MARKETINGALSO INSIDE:Today’s Business Development in Commercial FinanceWhat Do You Want To Be When You Grow Up?Enforcing Judgments: Tools at Your DisposalSteps to Stay on Your Mission
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May/June 2013 VOL 15 / No. 3Today’s Business Development inCommercial FinanceBy Justin GordonEnforcing Judgments: Tools at Your DisposalBy Bruce Sabadossteps to take to stay on your missionBy Max M. ToledoWhat’s New at IFAcolumnssales and marketing what do you want to bewhen you grow up?By Thomas G. SiskaIFA members making a difference leigh loneslegal factor Do’s and Don’t’s When Your ClientFiles BankruptcyBy John A. Beckstead, Esq.small ticket factor Wedding Advice andFactoring RelationshipsBy Jeff CallenderADVERTISER INDEX3i Infotech. 8Accord Financial. 5Bayside Business Solutions. 9Capital Plus. 13Capital Software. 27Crossroads Financial. 14Factor Fox. 31Factor Plus. 16First Corporate Solutions. Back CoverGibraltar Business Capital. 16Health Capital Investors.Inside Front CoverIFA. 13, 29Paramount Merchant Funding. 27Platinum Partners. 12RMP Capital Corp. 18RMP Trade Credit. 6Sentinel Portfolio Solutions. 11Sterling National Bank. 15TAB Bank. 19Utica Leaseco. 14The Commercial Factor May/June 2013 3
from the executive directorI know I should always belooking forward, but I’ve gotto glance in the rearviewmirror and mention what anincredible conference the IFAheld this year.With record attendance, excellent speakers, a beautiful hotel and incredible weather, the IFA conferencewas second to none. Personally I found the conference to be extremely inspirational. When you’re surrounded by 770 of your best friends, how can you nothave a rewarding experience?One of the highlights of the conference was the announcement of the IFA’slaunch of the AE Certification Program. Destined to be a game changer forthe entire Factoring and Asset Based Lending Community, this new programwill add credibility both to the industry and to those individuals that havetaken and passed the exam. The IFA has been working on the certification forover four years; it is wonderful to have this product finally brought to fruition. We hope that you see how this will benefit you, your employees and theentire factoring industry. You can find details about the program as well as anapplication on our website at www.factoring.org.I am also pleased to announce the addition of four new members to the IFA’sBoard of Advisors. The advisory board serves a two year term and assiststhe IFA in broadening the public understanding of the uses and benefits offactoring. They also help to both design training programs and foster newideas to benefit the IFA’s member organizations.The additions to the Advisory Board include: Tina Capobianco, Vice President, JD Factors Steve Hausman, President, Advance Business Capital Julie Regenold, President, TradeGate Finance, Inc. Stuart Rosenthal, Executive Vice President, Prestige CapitalAdvisory Board Members returning for the second year of their term include: Diana Clover, President, D&S Factors Richard Hall, General Manager, Factor LOGROS de Ecuador S.A. Marc Marin, Managing Director, Gateway Commercial Finance, LLC Andy Osborn, Senior Vice President, Summit Financial ResourcesThe IFA is offering a variety of classes this year to help you and the staff inyour organization learn and grow. We are offering both new courses as wellas the return of some of the favorites. You can find a listing of the upcomingcourses on page 25 as well as on our website. Check back often as we areconstantly adding new courses.As has become the custom, I’ll give you a quick update on me. The trip toMiami was my first since my accident and it could not have gone better.No issues and the trip was very fulfilling. The wound on my back should beclosed by the time this issue is released. After that, I’ll be able to participate inPhysical Therapy to learn more life in a wheelchair.Thank you for your continued support.The InternationalFactoring Association2665 Shell Beach Road, Suite 3Pismo Beach, CA 93449800-563-1895Executive DirectorBert GoldbergPublished ByThe International Factoring AssociationEditor/Design & GraphicsR&W Publishing AssociatesLisa Rafter, Executive Editorlisarafter@rw-assoc.comAdvertising SalesR&W Publishing Associateslisarafter@rw-assoc.comAdvisory BoardTina CapobiancoVice President of JD FactorsDiana CloverPresident of D&S FactorsRichard HallGeneral Manager of Factor LOGROSde Ecuador S.A.Steve HausmanPresident of Advance Business CapitalMarc MarinManaging Director of Gateway CommercialFinance, LLCAndy OsbornSenior Vice President of Summit FinancialResourcesJulie RegenoldPresident of TradeGate Finance, Inc.Stuart RosenthalExecutive Vice President of Prestige CapitalCorporationThe International Factoring Association’s (IFA) goalis to assist the factoring community by providinginformation, training, purchasing power and a resource for factors. The IFA provides a way for commercial factors to get together and discuss a varietyof issues and concerns about the industry. Membership is open to all banks and finance companies thatperform financing through the purchase of invoicesor other types of accounts receivable.The Commercial Factor is published bi-monthlyby the International Factoring Association. To subscribe, please email info@factoring.org.The Commercial Factor magazine invites the submission of articles and news of interest to the factoringindustry. For more information on submittingarticles or advertisements, email info@factoring.org, or call 800-563-1895.4 The Commercial Factor May/June 2013
PERSONNELCrestmark Underwriting TeamPromotions and ExpansionIn an effort to strengthen Crestmark’ssupport of businesses in need of workingcapital financing, Crestmark has recentlypromoted seven employees: In CrestmarkCorporate Troy, Michigan Office: LarryPearce, Lisa Beattie, Teri Haynes, DougKollman and Patty Saliga. In CrestmarkWest Division / Baton Rouge, LouisianaOffice: Jack Talkington, Ray LaBelle andGregg Geil.Bibby Financial Services NamesKate Smith Head of Operations,MidwestBibby Financial Services announced KateSmith has been promoted to Head ofOperations, Bibby Financial Services,Midwest.Karen Lessard Joins Crestmark TeamCrestmark announced the addition ofKaren Lessard as Assistant Vice President,Legal Compliance.Exchange Capital Names ExecutiveVice PresidentExchange Capital Corporation announced that Kevin Griffin has joinedthe company as Executive Vice President.Griffin will be responsible for leading theCompany’s efforts to develop new business relationships and provide workingcapital solutions to clients.BridgingFactor Provides 500,000Factoring Facility to Growing FoodDistributorBridgingFactor Inc. recently provided a 500,000 factoring facility to a Mississaugabased distributor of ethnic foods.Republic Provides 7.5 MM Line ofCredit Facility for PharmaceuticalsDistribution BusinessRepublic Business Credit provided a 7.5MM Receivables and Inventory lineof credit facility to a Georgia based pharmaceuticals distribution business.Bibby Financial Services ProvidesFactoring FacilitiesBibby Financial Services announced it hasprovided an 8 million factoring facilityto a Chicago-based distributor of hardware and software solutions. Bibby hasalso provided a manufacturer of composite materials for floors, desks and fenceswith a 3.25 million factoring facility.King Trade Capital Provides a 1.1MM Purchase Order Facility fora New York Based Apparel DesignerKing Trade Capital announced the funding of a 1.1MM purchase order financefacility for a New York based appareldesigner and manufacturer.Veritas Provides 4 MillionRevolving LOC to Factoring and POFunding CompanyVeritas Financial Partners successfullyclosed a 4.0 million line of credit forthe company to support its continuedgrowth.Loeb Term Solutions Provides Loanto Manufacturer of Racing ProductsLoeb Term Solutions was able to providea term loan on the equipment valued inexcess of 1.6 Million, refinancing theircurrent loan and providing the cashneeded to solve the IRS problem.Doral Healthcare Finance Provides 15MM For Growing HealthcareCompanyDoral Healthcare Finance has providedan amended credit facility for an existingclient with an increase in commitment to 15 MillionOTHER INDUSTRY NEWSAmerisource Reports New Businessfor First Quarter 2013Amerisource has added 22 new clientsin the first quarter of 2013, with totalDrake Finance Hires New ChiefCredit OfficerDrake Finance announced the addition of George H. Nunaihed as ChiefCredit Officer, joining the team uponthe retirement of Paul J. Schlachter.George will evaluate credit, risk and theoverall financial position of applicants forexport-related loans and is responsible forcommunicating with clients at every stageof the financing process.INDUSTRY TRANSACTIONSUtica Leaseco Latest TransactionsUtica Leaseco announced the recentcompletion of a 1.35MM sale/leasebacktransaction for an Ohio based aggregateprocessing company. Utica also completed a 370,000 sale/leaseback transactionfor a Southeastern Cabinet Manufacturerand a 1.6MM senior secured loan for aMidwest trucking company.Crestmark Closes Transactions InApril & MayCrestmark secured a total of 16,000,000in financial solutions for eight new clientssince April 15 and a total of 22,250,000in financial solutions for 11 new clientssince May 1.The Commercial Factor May/June 2013 5
newsnew funded commitments in excess of 25,000,000Transfac Capital Expands U.S.Presence With Opening of NewRegional Offices in Ohio andMissouriTransfac Capital, Inc. has continued toexpand its U.S. national presence withthe opening of new regional offices in St.Louis, Missouri and Westlake, Ohio.Bayside Business SolutionsAnnounces Release of CADENCEBayside Business Solutions announced thelatest release of CADENCE, its industryleading commercial portfolio management system.Gateway Commercial FinanceInvoice Factoring CompanyIncreases Credit FacilityGateway Commercial Finance, LLC anationwide provider of invoice factoringannounced that the company has completed an amendment to its senior creditfacility with First Tennessee Bank.James Baugh of Summit FinancialResources Among First to AttainNew IFA Professional DesignationSummit Financial Resources announced that James Baugh has achievedthe new Certified Factoring AccountExecutive (CFAE) designation, createdand administered by the InternationalFactoring Association.FactorsNetwork LaunchesChameleon Catcher ServiceFactorsNetwork, a collaboration site forfactoring companies formally unveiledits latest offering: “Chameleon Catcher,”an application that helps transportationfactors identify when a business carryingdebt opens up under a new name.International FactoringAssociation ReleasesAnnual Factoring SurveyIFA announced the release of itsbi-annual Business Profile andPerformance Survey. The surveyprovides industry benchmarkingdata and trends on factors’operations, client details, businessdevelopment practices, humanresources policies as well asother key business statistics. It isrecognized as the industry’s mostcomplete resource on factoringfor receivables finance providers,service providers to the factoringindustry, debt buyers anduniversities.Over 180 factoring companiesparticipated in the survey.“The report will provide thefactoring community with acomprehensive analysis andmetrics of the factoring industry,”said Bert Goldberg, ExecutiveDirector of the IFA. “Factors canuse the results to measure theirperformance against industrystandards and help them makeeffective and efficient businessdecisions.”Survey participants are able toobtain a complimentary copy ofthe survey and non-participantscan purchase the survey for 250USD by visiting the online store atwww.factoring.org.6 The Commercial Factor May/June 2013
Sales & MarketingToday’s Business Development inCommercial FinanceToday, the sales person is not the gatekeeper of company and industry informationthat they once were. So what does that mean to factors? Marketing has transformedfrom push to pull. We need to provide information to prospects, and their advisors,when and how they want it. BY Justin GordonI was fortunate enough to sit on a panel of mypeers during the recent annual IFA conference inMiami in April. It was great to hear some otherperspectives on the important role of businessdevelopment in our industry. Certainly everyshop is different based on product mix, operations, ownership and goals, but like most things,there are always a few nuggets to gain fromeach perspective. Below is some of my expandedthoughts on how we go about bringing on andretaining relationships at TAB. Hopefully, youfind some benefit.Marketing—What’s Above the Funnel?This area of business development has changedthe most in the last five plus years with society’sdependence on the internet to access information. Depending on which study you read, evenin business to business marketing, 60%-80%of the buyer’s journey happens before the buyerever contacts someone at a supplier. Today, thesales person is not the gatekeeper of companyand industry information that they once were.So what does that mean to factors? Marketinghas transformed from push to pull. We needto provide information to prospects, and theiradvisors, when and how they want it. Prospectsare searching for information at different stagesin their process and we need to provide it. Thatcould mean understanding the basics of factoring,the benefits, what situations it works and doesn’t,or why my factoring company is better thanThe Commercial Factor May/June 2013 7
another. Prospects consume that information in different media: whitepapers,articles, video, infographics, socialmedia, blogs, case studies, websites,ads, webinars, panels, and word ofmouth. At TAB, we have spent atremendous amount of time and effortcreating and modifying that content forall those channels and personas.The payoff of all that work is moreeffective marketing before sales makescontact and more consistency andefficiency after BDO contact is made.Based on demographics of the searcherand the behavior they display (whicharticles they download, which webpages they visit, etc.) we can scoreprospects based on past success andintroduce them to sales when they aretruly ready. This makes the buyingprocess more enjoyable for the business owner and his or her influencers.It also makes it more efficient for thefactor.Human Factor—Finding theRight BDOWhile my marketing VP may disagree,it still takes quality people to buildrelationships and relationships build acustomer base. People guide the prospect to becoming a customer. Anyonewho has hired or managed salespeople, knows that finding the rightfit between person and organization iscrucial to success. Regardless of whichreport you read, the cost of replacing arep, is expensive, time consuming andfrustrating.I use as many tools as possible to getthis piece right: personality profiling,multiple interviews by different teammembers, and professional recruiters.At my organization, we have a fairlywell defined box of transactions wepursue, so that makes it easier for meto find the rep that fits with our box.The evaluation ofthe experiencedBDO is prettysimple; it is aboutnet revenue.I look for very experienced peoplewithin the commercial financeindustry. I prefer those that havesome credit training and operationalexperience. This background combinedwith a sales experience can result ina seasoned professional that has awell balanced and productive referralnetwork. Along with the strongnetwork, a BDO with this backgroundhas the ability to improve the efficiency of the sales cycle, provide betterpre-screening of deals and reduce thework load placed upon underwritingand operations. A salesperson withthese qualifications is not an easy tofind so we use many different channelsto locate qualified BDOs, but, likemany, our reputation in the market isthe primary attracter of talent to ourorganization.Evaluating and Retaining—DidI Get a Good One?Earlier in my career, I spent a lotmore of my time on training. Andwhile I don’t do that as much, there iscertainly value for shops that chose to8 The Commercial Factor May/June 2013
build their talent instead of acquire it.If you can identify a person with all thegood sales qualities, you can developthat person by teaching factoring, basicunderwriting, where to find deals,managing a prospect and developingreferrals. That certainly takes time, butcan be rewarding for the organization.commission plans in our industry areheavily weighted on revenue. Somefactors bring in components such ascost of funds, servicing costs, brokerfees, or others to adjust commissions.If it is fair, consistent and understandable for the BDO, any formula canwork.For those working with experiencedsales people, results are expectedquickly. The evaluation of the experienced BDO is pretty simple; it is aboutnet revenue. Creating a P&L for eachBDO and monitoring all the costs andrevenue associated with the individualwill give you what you need. For amature organization, a benchmark canbe set. For younger organizations, itmay simply be a ranking between salespeople.End of the day, a happy BDO is onewho is getting deals done. Success willkeep the individual at the organizationover just about any other componentof the job. With many shops payinga BDO commission for the life of thedeal, an annuity is created that makesit tough for a BDO to leave.My job as a sales manager is toconstantly make sure that the organization’s goals and expectations arealigned with the sales team’s efforts andwhat is happening in the marketplace.If I am doing that, we are closing deals,and retaining good sales people. With inexperienced sales people, onewould expect the measurement ofmany more sales activities to make surethe sales person is on the right path.In those situations, I measure numberof calls, visits, applications, proposalssent and signed proposals received,approved deals and closed deals. Youcan bench mark those activities againstsuccessful sales people in the organization and work with the individualto improve specific areas that willultimately improve total number ofclosed deals.My philosophy on incentive programsis to keep them simple, consistent,and make sure they are motivatingthe same activity that upper management wants in results. For me, thatis pretty simple – net revenue. MostJustin Gordonis Vice Presidentand National SalesDirector at TABBank in Ogden,Utah. Justin hasbeen with TAB forover thirteen years working in variouscapacities including credit, operations,and sales. For the last seven years, Justinhas managed TAB’s national sales forceand core product offerings of AccountsReceivable Finance and Asset-BasedLending. In his tenure, Justin helpedguide TAB Bank from a transportationonly financial service provider to a leaderin working capital solutio
in financial solutions for eight new clients since April 15 and a total of 22,250,000 in financial solutions for 11 new clients since May 1. BridgingFactor Provides 500,000 Factoring Facility to Growing Food Distributor BridgingFactor Inc. recently provided a 500,000 factoring fac
