How to Close:
Typically, the invoice factoring sales process happens in three parts: (1) Introduction of the concept of factoring by the broker to the business owner, (2) The conceptual embrace of factoring by the business owner, and (3) The closing, (a.k.a. the business owner agrees to factor his/her receivables). All too often, the process stalls in the closing phase of a factoring deal. The last thing a factoring broker wants to have happen is to see his/her hard work throughout the sales cycle come to a standstill. The following “Five Tips for Closing More Factoring Deals” are designed to help factoring brokers become more effective with the closing piece of the factoring sales process.
Sell the Business Owner What They Want, Not What They Need
A cardinal rule that many salespeople forget to follow during the closing process is a basic one: listen to what the business owner wants. Without a doubt, when a business owner approaches a factoring broker, he/she needs to improve his/her cash flow, but what they really want is cash. Make sure that your closing technique narrows in on the fact that invoice factoring will indeed fulfill their want – to have cash. Which sounds better to you? Saying something like “Factoring your invoices will help improve your cash flow;” or saying something like: “When you can sell your invoices to a factoring firm, you can literally receive cash the same day you invoice.”
Sell Invoice Factoring as a One-of-a-Kind Financing Solution
In the sales world, the word “only” is probably one of the most influential selling agents when it comes to closing a sale. As luck would have it, most business owners have never heard of the concept of factoring. In addition, these same business owners often approach a factoring broker when other traditional financing methods have failed them. This built-in scenario gives factoring brokers the ability to offer a very appealing and tailored one-of-a-kind solution to get a business owner cash fast-invoice factoring. Who could turn down that kind of offer?
Create a Sense of Urgency
Even if a business owner has already demonstrated an interest in factoring his/her invoices, oftentimes, the sales process stalls at the end because the prospect is only happy to close when they get around to it. When this happens, factoring brokers should try to motivate the prospect to close by offering a time sensitive bonus in order to finalize the commitment. Sometimes, this will involve bluffing or enhancing the appeal of your offer. For example, a factoring broker might say that the submitted application will remain active good for another week.
Speak Your Piece, Then Be Quiet
Never underestimate the power of silence. The next time you use a closing technique, be quiet afterwards and give the business owner some time to respond to the offer. Remaining quiet after making the offer accomplishes two things: First, the silence naturally builds tension and thus encourages the person to respond and second, it gives you the ability to hear the business owner’s ‘yes.’
Don’t Take it Personally
Being a successful factoring broker means you have to grow a thick skin and get used to hearing ‘no.’ So if you tend take rejection personally, then perhaps sales is not the right job for you. Train yourself to have faith in your ability to help business owners mainstream their cash flow. Doing this will help you accept that if a business owner says ‘no,’ he/she is saying ‘no’ to factoring, not to you personally.
There are many gimmicky sales-closing techniques that factoring brokers can use to help them close a sale, and they may work on a short-term basis. However, in order for a factoring broker to be truly successful in closing more factoring deals in the long-run, he/she should really consider the tried-and-true tips shared within this article.