One of the most powerful and consistent sources of new factoring clients comes from a resource that poorly-trained brokers overlook—bank loan officers.
This is one of the earliest marketing campaigns to engage in for most factoring brokers and consultants, so in this short video, we’re going to talk about exactly how you can build strong relationships with bank lending professionals and why this is such a critical skill for growing your factoring business.
Here’s the simple truth about this type of marketing campaign. Banks turn down a very high percentage of the small business loan applications they receive—some studies show upwards of 70% or more of small business applicants fail to qualify. Now here’s the opportunity for you, as a factoring broker: those same business owners still need capital. Factoring can often be the perfect solution—and bank loan officers are looking for trusted professionals to refer these clients to for valuable bank depositors. That trusted professional can be you—if you know how to build the right relationship.
Not a Ont-Time Event
But here’s the key: getting referrals from bank officers is not a one-time event. It’s about building a relationship over time—one based on trust and professionalism. In the vast majority of cases, it starts online—with LinkedIn. Your first step is to identify local bank loan officers in your area. These could be business development officers, commercial lending officers, SBA loan specialists—you’ll find many of them active on LinkedIn.
Send them a personalized connection request. Don’t pitch them yet—just introduce yourself as a local commercial finance consultant or factoring broker interested in connecting with fellow professionals in the community. This is all about opening the door—not selling on the first interaction.
A simple message might say something like: “Hi, I’m Bill Jones, and I’m a local factoring consultant here in Tucson. I work with B2B business owners in need of invoice financing, but I also have periodic inquiries from business owners who aren’t operating B2B and are not a fit for commercial factoring. I’m always looking to connect with local banking professionals in my area for referrals and I’d love to add you to my network.
Start Engaging with Valuable Content
Once you’ve connected with the loan officer, don’t rush. Spend time engaging with their posts, commenting thoughtfully, and gradually building rapport. Remember—you are positioning yourself as a helpful resource, not a competitor. And also, this is a two-way street. Loan officers want partners who can send some business their way and in return, they will send referrals to you if you will take good care of their clients. You need to preserve their banking relationship, and make them look good when they refer a prospect to you.
Once some initial rapport is built, that’s when you take the next step. You’ve established an initial connection online and it’s time to take it offline and deepen the relationship. For local bank officers, a powerful next move is to send a direct mail piece—something tangible and professional. It might be a simple 3-panel brochure, a one-page overview of your services, or even a branded gift item. Include a personal note referencing your recent LinkedIn connection. For example, say something like: “Hi Robert, it was great to connect here on LinkedIn. Let’s set aside some time for a quick coffee or lunch sometime when you’re available.” Then, follow that up with a professional phone call about a week after your direct mail piece lands.
Avoid the “Hard Pitch”
Remember, your phone call isn’t a hard pitch—it’s the beginning of building the relationship. A simple conversation such as:
‘Hi Robert, just wanted to follow up on the material I sent. I’d love to learn a little more about your role at the bank and share how we can be a resource for each other when clients don’t qualify for each other’s unique services.'”
Here’s why this works: bank loan officers know that when they decline a client for a loan, they need to offer an alternative. Referring a client to a trusted factoring broker helps that client solve their cash flow problems—and helps the bank officer preserve the client relationship for future opportunities. But they will only refer clients if they know and trust the broker they’re working with—that’s why relationship-building is so critical.
This lead-generating campaign is one of the earliest initiated by all new industry factoring brokers. Almost all invest in this lending officer networking process within the first 60 days of operation. Start by building your initial connections on LinkedIn. Then nurture the relationship online and engage consistently. And finally, move offline and face-to-face. Send a professional direct mail piece and follow up with a coffee or lunch invitation.
And always remember: you’re not selling a product—you’re offering yourself as a partner. You will be a trusted resource who can help when traditional bank financing isn’t available. Over time, those relationships will become one of your most valuable lead sources—because bank turn-downs are happening every single day.