Landing Clients That Will Not Deal With Factoring Companies.
Good news for the agency. You are just about to land that big account you’ve been chasing. Once on board this client could take the agency to the next financial and status level. This client will add even more credibility to the agency and can be used as leverage to sign even more larger clients.
Management are excited and mentally counting all the new revenue. The entire staff have been licking their lips at landing this account. They are already floating the idea of having the office Christmas party in the Bahamas this year at the agency expense.
There’s lot of expectation riding on this account, but then, at the eleventh hour, the client breaks the bad news to you. They will not, under any circumstances, deal with a factoring company. That is, and has been, their corporate policy, and they will not waiver from that position.
This form of financing is not a new concept, and their motive for not working with factoring companies is probably archaic, “it’s always been done that way,” but unfortunately it still remains their current policy.
Utilizing a factoring company really doesn’t affect the client that much at all. The decision doesn’t cost the client so why should they even be concerned? Factoring is simply a sound business decision that the agency has chosen to make to maintain cash flow and enhance company growth.
In any case it’s easier for the contact to give the appearance of being on your side by saying “I agree, you make perfect sense, but I am sorry that the company policy is not to deal with factors.”
The contact may even disagree with this outdated corporate policy but simply doesn’t have the power to countermand it. The contact is not likely to try and get the policy changed even if the client benefits. Trying to rewrite corporate policy means extra work for the contact, and they may also fear what management will say. The policy remains intact.
For whatever reason, that sinking feeling in the stomach indicates the end of the road with this client. The agency wants the client but needs factoring to finance the project but client will not work with the process.
All the extra time, effort, patience and energy invested in landing this client is proving fruitless. There goes that trip to the Bahamas!
How do you get around the road block? This scenario could have and should have been addressed much earlier in the negotiations. By asking this one simple question, “do you deal with funding companies?” quickly flushes out any objections.
Don’t draw any attention to the question, make it appear to be a standard question you ask as part of the regular fact finding mission with all prospects.
There are only two realistic answers to this question. A third unlikely answer “I don’t know” suggests that the contact is the wrong person to be dealing with at the organization. They are not the decision maker.
Under most instances the contact’s response will be “yes.” In which case nothing changes, you continue on with negotiations and sign the client.
What if the contact answers in the negative? At this point a little salesmanship is required. Simply don’t react, just continue on with negotiations as if a “no” was a normal response.
Hearing the “no” very early in the negotiations allows you the opportunity to make alternative financial arrangements and still land the account.
How can you still land a client who is adamant about not dealing with factoring companies? The dilemma is you have the ability and personnel for the client, but can’t service them without factoring.
If you are working with, or have worked with clients that will not deal with factoring companies, we may be able to assist. We have a specialized system designed to work with these types of clients and scenarios.
Please call us to discuss your specific situation and determine if we can assist you.
Don’t forget, in addition to very comparable rates, we offer free staffing agency marketing for our clients.