2011 IFA Conference Wrap Up
By Jeff Wright, Senior Vice President, Hennessey Capital
I recently attended the 2011 International Factoring Association Conference in Washington D.C. This conference brings together factoring companies and those that service them from across the country. This year’s conference included over 600 attendees which made it the most well-attended event in the association’s history. This may be attributed, in part, to an economy that is showing signs of improvement. The key note speaker, Elizabeth Duke from the Federal Reserve, provided significant data supporting a recovery. While a recovery is in process, it is a fragile one, wherein banks are being cautious about lending to small businesses. Alternative financing, i.e. asset based lending and factoring, are still needed to provide access to capital to companies that do not qualify for traditional banking. Non-traditional funding sources can be that bridge to finance start up companies and those that are in a turnaround stage until they can qualify for bank financing.
Traditional factoring companies and those that specialize in healthcare, construction, transportation and P.O. and M&E lenders were also represented at the conference. This group provides an excellent forum to network and discuss how we can work together to provide financing to small businesses that need access to capital to grow their businesses. I had the opportunity to meet with P.O. lenders that can provide financing to purchase material and fund the work in process until completion. This allows companies the opportunity to take on new orders without having the liquid capital many companies need. I also had the pleasure of meeting M&E lenders that fund clients with weak balance sheets and operating performance. Their focus is on the asset values and not necessarily on the operating performance of the client. By partnering with them, we can address all the client’s working capital needs.
I also met with a transportation factoring company that was seeking to rediscount its lending portfolio to fund growth in its factoring business. In some instances, they could not capitalize on new business opportunities because they did not have a lender to finance their growth. Hennessey Capital has experience in financing finance companies and sees this as a growing market segment of our business.
One of the break out sessions I enjoyed immensely was “Negotiating Techniques” presented by Marianne Eby. She explained the importance of being prepared, mutual gain, listening until it hurts, keeping it positive, focusing on trust, relationships and interest, probing to explore, never say no or yes (use yes, if …). I have her presentation for those who would like it. E-mail me to request a copy. I plan on using her list of “crunches” as negotiating probes to help me better service my clients’ needs and make it a win-win for all parties.
