For factoring brokers, finding quality leads is all about identifying businesses with cash flow challenges—and one of the most overlooked prospecting strategies is Product Shopping. This tried-and-true approach helps brokers build highly targeted “Compiled” Lists of small manufacturers, wholesalers, and distributors who sell to Big-Box retailers and national chains but struggle with long payment cycles.
Many brokers rely on networking, cold calling, and online research to find clients. While these methods work, Product Shopping takes prospecting into the real world—allowing brokers to spot potential clients while shopping at their local grocery store, hardware store, or specialty food market. By training your eyes to recognize products manufactured by small companies, you can discover businesses in need of factoring services before your competitors do.
Why Product Shopping Works for Factoring Brokers
Small manufacturers and distributors love landing a contract with a big retailer like Walmart, Kroger, Whole Foods, or Costco. The visibility and sales volume are fantastic, but there’s a catch—big-box stores often take 50 to 90 days to pay invoices.
For a small operator, this delay can be devastating to cash flow. They still need to pay for raw materials, production, packaging, and shipping long before they see a dime from the retailer. This is where factoring brokers step in—offering a cash flow solution that allows the manufacturer or distributor to get paid immediately on outstanding invoices.
Product Shopping allows brokers to:
✅ Spot businesses before they actively seek financing
✅ Find small manufacturers without spending hours on research
✅ Get ahead of the competition with a real-world prospecting method
✅ Build an exclusive, highly targeted prospect list
How to Spot Great Factoring Leads While Product Shopping
1️⃣ Browse the Shelves for Gourmet or Specialty Products
Many small manufacturers start by getting their product into local or regional grocery chains before expanding nationally. Look for:
- Gourmet BBQ sauces
- Specialty snacks (organic chips, keto-friendly items, exotic jerky, etc.)
- Locally brewed craft sodas or kombucha
- Small-batch spice blends or seasoning rubs
If the label looks handcrafted or features a small family-owned company name, chances are it’s a great factoring prospect.
2️⃣ Check the Label for Clues
Many small manufacturers print details about their company on the back of the label. Look for:
- “Handcrafted in [City, State]” – a sign it’s a small operator
- A website URL or social media handle – allowing you to research further
- A story about the founder – indicating a small business origin
If the brand doesn’t have a national presence but is being sold in a major chain, that’s a strong factoring lead.
3️⃣ Look for “New to Market” or “Locally Featured” Sections
Many grocery stores feature “Local Products” or “New Arrivals” in special sections. These are prime candidates for factoring because:
- They are just getting started with big-box distribution
- They are likely underfunded but scaling fast
- They need working capital to fulfill growing orders
A simple Google search for the company name can help you determine if they are a small operation selling to a major retailer.
How to Turn Product Shopping Into a Prospecting Campaign
Once you’ve identified a potential lead, here’s how to turn that discovery into a factoring deal:
Step 1: Gather Basic Information
- Take a photo of the product and label
- Visit the company’s website and LinkedIn page
- Find the owner, founder, or sales manager
Step 2: Make the First Contact
Send a warm, non-salesy email or LinkedIn message like this:
Subject: Congrats on Getting Into [Retailer Name]!
“Hi [First Name], I was shopping at [Retailer] the other day and came across your [Product Name]. First off—congratulations! Getting into a major store is a huge milestone.
I work with small manufacturers and distributors who supply major retailers. I know that large retailers often take 50-90 days to pay, and I help businesses like yours keep cash flow smooth while scaling production. If you’re interested, I’d love to share some ideas that have helped others in your industry.”
“Would love to connect—let me know a time that works for you!”
Step 3: Follow Up with Direct Mail or Samples
If the company is local or you have an address, send a small package:
✅ A handwritten note referencing their product
✅ A case study about a similar business that benefited from factoring
✅ A fun branded item (like a coffee gift card with “Let’s chat over coffee!”)
Other Places to Apply Product Shopping
While grocery stores are a goldmine for small manufacturers, there are many other places to find factoring prospects using this strategy:
Big Box Stores (Target, Walmart, Home Depot, Lowes, etc.) – Look for new or specialty products in hardware, kitchenware, home goods, and automotive accessories.
️ Trade Shows & Farmer’s Markets – Many businesses selling at trade shows are looking to expand into major retailers.
Liquor Stores & Breweries – Craft beer, specialty spirits, and locally made wines are often produced by small manufacturers with cash flow issues.
Wholesale Clubs (Costco, Sam’s Club, BJ’s) – Small businesses supplying wholesale retailers often struggle with high-volume order fulfillment.
Why Product Shopping is a Factoring Broker’s Secret Weapon
Unlike generic lead lists, Product Shopping allows factoring brokers to:
✅ Find hidden opportunities before they appear in databases
✅ Discover companies struggling with big-box retailer payment terms
✅ Make warm, authentic connections by referencing real-world purchases
✅ Stand out from competitors who rely on cold calls and online marketing
The best part? It’s free, easy, and can be done while running errands.
If you’re a factoring broker looking for a simple but highly effective way to build your prospecting lists, Product Shopping is a goldmine of opportunity. By simply training your eyes to spot small manufacturers in major retailers, you can uncover highly qualified leads who need your services but haven’t started looking yet.
Ready to put this strategy to work? Next time you’re at the store, make it a prospecting mission. Take note of small business brands, research them, and start buildin