Hoosier Banker 45 bank can be reasonably certain that the prospect’s administration and reporting abilities are in good order. Most factoring operations are not bankaffiliated, so they do not compete with the bank for services. Some factors specialize in industries such as trucking, where the customer will remain a borrower of the factor. Others act as bridge lenders, which pertain to the banking community, because they fill a need for sizable working capital . when the borrower’s balance sheet won’t satisfy a bank’s credit requirements. When a factor concentrates on companies with strong gross margins and large immediate growth opportunities, its clients generally level off in their growth, collect their profits, and build their balance sheets well enough to satisfy a bank lender in 12 to 18 months. Graduation rates of factoring clients vary radically, depending on the factor’s approach, so their graduation rate can be a good indicator of your chances of getting your referral back. If you are a business banker with a need to get a competitive leg up and establish lifelong customers, consider partnering with a factor. Factoring is an effective tool to lend to nearly unbankable companies, and it can increase your chances of banking your “Forever Frank” customers. HB Congratulations to Emily Brooks, who was named Indiana Bankers Association Employee of the Month for both February and March. Additionally, Susan Clark earned an honorable mention in March for outstanding service, as nominated by IBA members. Emily is IBA’s member engagement specialist, and Susan serves as events & products/services assistant. To support IBA professional development, Association members, associate members and staff are invited to submit names of IBA employees in recognition of exemplary service. Nominations are read at monthly staff meetings, and a drawing determines the winner, who is awarded a prize. Please call 317-387-9380 to nominate an IBA Employee of the Month, or email any IBA staff member with a nomination. HB Emily Brooks IBA EMPLOYEES OF THE MONTH Susan Clark
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