Word of mouth is one of the oldest, if not THE oldest form of advertising. In most cases, it’s also one of the most effective. It says something good about a business when a third party cares enough to recommend that business to family, friends or even their own clients and customers.
In many cases, the party making the referral stands to benefit as well. How does that happen? Let’s consider for a moment a growing construction company. They’re doing well, but are still having an issue with cash flow.
Sometimes all it takes is one or two large clients whose payment doesn’t arrive when expected to really put the construction company in a bind. That’s when trying to meet payroll or taking on new projects can become really difficult.
So they go to their bank to see about a loan to help meet their immediate needs. The sad truth is, many banks and other traditional lenders often see loans to construction companies as too risky.
What Are the Options?
Here’s where the bank has the opportunity to benefit, not just themselves, but their clients as well.
If the bank must say no to the loan, they’ve essentially destroyed any loyalty the construction company may have developed toward the bank. It doesn’t matter how polite the denial is given, it’s still a denial, and feels like a slap in the face to their client.
Consider this alternative scenario instead. The bank is still forced to say no to the loan, but instead of “no” being the final word, the bank is able to offer their client an alternative funding source, such as invoice factoring.
The construction company gets their much-needed influx of working capital without incurring any debt, and the bank is able to help their client without incurring any risk.
The construction company is happy because their bank helped them solve their problem. And now that they know about factoring, they can use it whenever they feel the need.
The bank is happy because they were able to help their client and maintain
the client’s loyalty to the bank. With the construction company’s new-found empowerment, the bank will likely enjoy an even more successful client in the
future…one who is forever grateful for the help the bank was able to provide.
Do You See the Advantages of Offering Factoring to Your Clients?
At CapitalPlus, your clients can be our clients too. And it’s a win-win-win situation for all parties involved. No one else understands the benefits and advantages of invoice factoring better than we do.
If you’ll let us, we can help you serve your customers better, at the same time increasing their loyalty to you. Give us a call today at 865-670-2345 and let us explain exactly how you can benefit from using our referral program.
We’ll show you how easy it is to solve cash flow challenges for your clients by offering them the opportunity to take advantage of all the benefits invoice factoring has to offer.