As a PAL Associate at IACFB, networking and relationship-building are key to growing your business. While most brokers focus on traditional methods like attending conferences or making cold calls, sometimes the best opportunities come from thinking outside the box. Take, for example, this case study, where a broker’s decision to purchase a collectible car turned into a new, lucrative factoring account.
The Spark of an Idea
Conrad, a part-time PAL Affiliate at IACFB, had recently decided to elevate his business by upgrading to a PAL Associate. This upgrade meant he would receive his own professional website with a custom URL, a powerful tool that would allow him to present himself as a serious factoring consultant. As part of this shift, Conrad also understood the importance of always having business cards in his pocket, ready to share with potential clients and contacts.
While making these professional upgrades, Conrad was also updating his lifestyle in various ways, including upgrading his mode of transportation. Initially considering a practical, affordable import car, he came across an article in Commercial Finance Magazine that sparked an idea: why not purchase a collectible classic car? After doing some research, Conrad decided on a vintage Ford Mustang convertible from the 1965-1967 model years for several reasons.
- Affordable Investment – his research told him he coulf purchase a good quality example in the $30,000 range
- Reliability and Ease of Maintenance – The 260-289 cubic inch V8 engines used in these Mustangs were renowned for their durability and ease of repair. Parts were readily available and affordable, making it an ideal choice for someone looking for a classic car that wouldn’t break the bank on maintenance.
- Networking Potential – becoming an owner of a collectible car had completely unlimited possibilities for networking with sources of referral through his website, as well as sparking conversations with business owners he called upon
Getting Started in This Campaign
To Conrad, this would be a very creative marketing campaign. Before purchasing the car, Conrad made the smart decision to research local collector car clubs. He soon found one in his area and, despite not owning a car yet, decided to join. The next step was to connect with the club’s president, Morgan Jennings, to find out when their next meeting was scheduled. To his surprise, it was just two weeks away, and the event was to be held at a local collector car show.
Networking and the Unexpected Call
As Conrad networked with members at the event, he did what any good broker would do: he handed out business cards. His card prominently displayed his title as a “Commercial Finance Consultant”, and he had many of those he met asked him what exactly a Commercial Finance Consultant was and did? While he was primarily in search of a car, these questions also gave him the perfect opportunity to use his well-practiced elevator pitch.
The next day, Conrad received an unexpected phone call from Fred Trundel, one of the club members he’d met. Fred wasn’t calling about the Mustang he was in search of, but about Conrad’s business services. You see, Fred owned a specialty painting company that focused on parking lot line painting and had recently secured a contract to perform maintenance for three Wal-Mart stores. However, Fred knew Wal-Mart’s lengthy payment terms could create a serious cash flow problem, and he was looking for a quick cash flow solution for the lengthy invoice payments problems that would be coming his way.
Turning the Opportunity Into a Factoring Account
Although still shocked by the call, Conrad quickly began educating Fred about the benefits of commercial factoring. He explained how factoring could solve Fred’s cash flow problem, allowing him to get paid faster while Wal-Mart settled the invoices. After meeting in person, Conrad connected Fred to a factor who was eager to take on his business as a new client.
The outcome? Fred became one of Conrad’s first major factoring clients, and the deal turned into his largest account to date. On average, Conrad earned over $700 per month in commissions from Fred’s account—more than enough to cover his monthly payments on the beautiful, candy-red 1965 Mustang convertible he was now ready to purchase.
Key Takeaways for IACFB PAL Associates
Conrad’s story is not unusual at all and highlights the power of creative networking. Sometimes, the best business opportunities arise when you think beyond traditional methods and leverage unexpected passions and interests. By upgrading to a PAL Associate and obtaining a website with a custom URL, Conrad not only presented himself as a professional in the industry but also made sure he was prepared with business cards to hand out when the opportunity arose. His decision to purchase a classic Mustang convertible, rather than a typical import, opened amazing doors to networking opportunities he hadn’t initially considered—and ultimately led to his largest factoring account to date.
This case study proves that creativity and out-of-the-box thinking can lead to exceptional results. As a PAL Associate, be open to exploring unconventional networking opportunities. Whether through hobbies, shared interests, or unique social settings, building relationships outside of the office can unlock doors to new clients and business opportunities. So, get creative and watch your factoring business grow!