Coronavirus talk rolls off our tongues these days easier than just about anything else. At FactorFox, we are focused on how a 2020 pandemic affects the Factoring Industry for this upcoming year and beyond. Here are three identifying trends we feel will make a mark on the future.
1. Big Moves in Technology
We’re not tooting our own horn, but 2020 was an epic year for Factoring software upgrades. We’ve doubled down on giving more features to our factors and their clients, making it easier than ever to run a factoring business and keep everyone happy, paid, and very busy. We know how important it is for quick and efficient document processing, as well as payment processing. This year, FactorFox will have its fastest and most robust Factoring platform ever. We’re keeping up with times, and as technology evolves, so is our platform.
2. Freight Factoring Growth
One thing we’ve realized in the last year, is how important freight has been in keeping us safe and connected during a pandemic. We’ve changed the way we lived in the last year, and what seems like a new normal is here to stay longterm. 2020 created a huge market for staying home and receiving deliveries, be it from Amazon, Instacart, and even Peloton. Freight services increased with the demand in commodities like paper towels and home furnishings. This created a huge supply chain change with the reliance on freight services at an increased pace. The uptick in freight service needs created a larger demand for the factoring industry to produce faster, reliable services and we believe this will continue for years to come.
3. Consumer Bank Changes
Factors should see an uptick in companies reaching out for loans as banks become increasingly more stringent in providing money to companies going through lots of internal changes. One thing 2020 has shown is that there is less predictability in the success and failures in a business. Because of this, banks are reticent to loaning money out to smaller businesses because of market volatility. With factors looking past some of the key factors banks typically look at, we expect major growth in the Factoring industry as banks scale down their loan comfort levels.