Business Services: This includes outsourced services such as marketing / PR agencies, consulting firms, call centers, and engineering / development firms.Standard 'sin industries': gambling, porn, firearms, legal & illegal substances (including medicinal marijuana).Healthcare providers paid by 3rd parties (e.g., by Medicare, HMOs).Generally, we'll factor any invoices from 15-90 AR days with notable debtors that are B2B and billed in arrears. Our list of excluded industries is much shorter than the list of industries that we do fund. …an upfront bounty as a percentage of the first 30 days of total financed invoices! BlueVine will pay this upfront bounty out directly as an incentivization spiff on a month-to-month basis to select few preferred partners that have demonstrated an ability to knowledgeably sell BlueVine's invoice factoring product.įor example, a sales rep earning 1.0% of first 30 days invoice volume would earn roughly $5,000 on a $500K credit line, and roughly $20,000 on a $2 million credit line.Ĭontact us at today if you need help structuring your sales compensation plan in relation to our products! - The best industries for BlueVine factoringĪt BlueVine, we lend across a broad spectrum of industries. We’ve tested a number of different salesforce compensation structures over the years, but we’ve found one structure in particular to be most effective… Incentivizing your salesforce to sell residual income products can be tricky.

Now multiply all of those numbers by 3x to 5x for your expected customer lifetime commission!Ī business with a $500K factoring credit line is probably generating around $6 million in revenue per year. If you compare factoring commissions to the commission earned on a non-bank term loan or MCA product brokered to a business of this scale, the lifetime commission earned on the factoring client is significantly higher! The renewal rates on large A-paper non-bank term loans and MCAs cannot compete with the strong client retention present in the factoring industry.Īnd many of the $2M-$30M annual revenue businesses that would qualify for the larger A-Paper loans & advances would actually prefer a less expensive invoice factoring credit line. Average 12 Month Commission for Referral 21% APR It's important to note, as well, that the average lifetime of our clients is 3-5 years. Standard BlueVine commission is 15% of all collected fees for the lifetime of the client. Like all invoice factors, we pay residual commissions based on collected fees. These larger credit lines represent compelling commission referral opportunities that many in the working capital and equipment finance world are NOT tapping in to today. We've highlighted some larger invoice factoring credit lines this week in the $200K - $500K credit line range. If you haven't read the HBS working paper on 'The State of Small Business Lending' that Eyal references, read it now! - Big invoice factoring commissions for big invoice factoring deals! Small business lending turnaround in 2017Įyal Lifshitz, our intrepid CEO, explains in Entrepreneur why he believes ' Online Small-Business Lending Is Set to Bounce Back'. Add to that an expected multiple compression on Kabbage's business given current public market valuations (making an equity raise look less attractive to earlier institutional investors from a dilution perspective). Even with On Deck's public market valuation at a fraction of its IPO price, it's hard to see why a cheaper, distressed asset like CAN Capital (also based in Atlanta, GA) wouldn't be a better option for Kabbage. Reuters reported this week that Kabbage is rumored to be raising a large equity round to make a strategic acquisition, with the report specifically naming On Deck Capital.

Invoice factoring near me