Epic Victory Lap
Brisket’s on—and not just because it’s officially summer.
As you might have heard, there’s good news from the Lone Star State. A few months ago a doozy of a disclosure requirement bill (modeled, of course, on a similar law in California) was slithering through the Texas legislature.
A few weeks ago, that bill died in committee. Thanks to the hard lobbying work of the AFA, the International Factoring Association, and those in the Texas factoring community who made their voices heard, HB 4359 won’t be coming to the senate floor for a vote.
Having written about this ridiculous disclosure bill myself, and having given my two own cents in person at a committee hearing, I think I’ll go ahead and treat myself to a little soapbox, courtesy of Mr. Smith in Washington:
“I wouldn’t give you two cents for all your fancy rules if, behind them, they didn’t have a little bit of plain, ordinary, everyday kindness and a little looking out for the other fella, too.”
When the powers that be take the little fella into account, and block some snake-oil law that would discourage everyone from giving his starving business a loan, that’s another win for real freedom.
Epic victory lap.
Memes of the day
Any good celebration recalls some of the action.
As a reminder of how unique and timeless factoring is, here’s part I of an article I wrote for Commercial Factor earlier this spring. I’ll drop Part II next month—and in the meantime, if anyone you know would like a primer on factoring and why it’s worth fighting for, go ahead and hit the forward button.
On Factoring by Cole Harmonson (Part I of II)
Not long after American Express acquired Kabbage, small businesses who had been using the start up’s platform for pandemic cash flow learned a hard lesson. Big banking firms may want to help them… but they really don’t know how.
Before long, clients realized that the platform, team, and painless system which had helped over 130,000 small businesses get emergency funding earlier was now a complete mess. American Express had acquired the company, but not its pre-existing loan portfolio. Delays mounted; hurdles piled up. Loans that went to the wrong bank account were unrecoverable. Customer service agents promised help that never materialized.
While the plight of Kabbage and its small business clients made headlines, we have to ask if those who run our financial sector learned the right lessons.
One lesson might be this—good intentions and venture capital don’t automatically translate to prudent consideration for every stakeholder. Another would be something that we already know: independent factors, operating with trust, flexibility, and their own underwriting, are far more equipped to lend to other small businesses than MCA’s with a ticker symbol.
That’s because factoring—getting new companies the cash they need without interference—is as old as commerce itself. Factoring originated in the ancient Middle East; it played a huge role in Venice Italy, the banking capital of the Renaissance. Today, and throughout American history, factoring animaties the entrepreneurial spirit of ‘doing it yourself.’ Bailouts, government subsidies, and big predatory lenders are no substitute for a practice based on trust, and proven to work time and time again around the world.
Of course, we can’t count on legislators, or senior partners at big banking firms to understand that. More than ever, Factoring needs advocates.
Check out July’s Newsletter for Part II.
Freedom, Flexibility, and Dare’s White Label
When the hero’s journey calls you into the unknown, you need a guide that understands one thing—freedom and flexibility are non-negotiables. Faced onward and paired with the trials that inevitably come (not ‘if’ but ‘when’), true freedom shapes us for courage and responsibility.
Building your White Label Portfolio in a Dare partnership means:
-Greater income (a lot more)
-Owning assets instead of commissions
-Zero investment down
-No personal liability
-Fifty-fifty split on risks and profits
Talk about a victory lap for freedom.
Don’t be shy and give the Dare team a call.
Until next time,