Some things never go out of style. At White Oak Commercial Finance (WOCF), a new generation is ready to prove that factoring is one of them.
Martin Efron has stepped into the role of Head of Factoring as his mentor, CEO Bob Grbic, transitions into semi-retirement after more than 30 years in commercial lending. But there is much more to this story than a simple leadership change.
“What we are seeing right now is a generational shift not just at WOCF, but across the factoring industry,” said Efron. “This is something that only happens maybe every 20 years and it is happening for many top-tier factors at the same time. It’s an exciting moment for us, with a fresh vision and new energy that will help shape what comes next for the industry. I’m proud to help lead the charge with my talented team.”
Factoring has been the apparel industry’s go-to option for quick access to working capital for decades, although its roots go back hundreds of years. It’s a traditional mode of funding that allows companies to sell their accounts receivable in order to collect cash immediately to purchase supplies, restock inventory, make debt payments or fund growth opportunities. Unlike banks, factoring also provides credit coverage, with the factor effectively becoming their clients’ credit department, which can help protect them in a challenging retail environment.
But some have argued that its heyday is over.
“For the last 20 years, people have been saying there is no future in factoring, that no young people want to come into it, but that is simply not the case,” explained Efron. “That is a misconception from people outside the industry, who don’t understand how incredibly dynamic and entrepreneurial this industry really is. There is a reason factoring has stood the test of time. It is as relevant today as ever, and it never stops evolving.”
While factoring is most commonly associated with apparel and consumer product manufacturing, it is also increasingly being used in other industries as well, including staffing, B2B services, healthcare and transportation. Additionally, some creative factors are now broadening their approach to asset-based lending to convert the value of a strong e-commerce brand and other types of intellectual property into effective borrowing power. Flexibility is the greatest strength of factoring, so it can adapt to all kinds of business financing situations, including those that haven’t even been imagined yet, which is key to future growth for the industry.
Efron, who recently celebrated his 50th birthday, is the ideal man to lead the charge at WOCF at this time of generational change. He has been in the money lending business since he was just 18 years old. He was born and raised in Argentina, where he graduated among the top of his class at the Universidad de Buenos Aires and became a Certified Public Accountant, before emigrating to the United States to attend Stanford University for his MBA. He then moved to New York City to begin his career in commercial banking, spending several years with Citigroup and RBS Citizens N.A., part of The Royal Bank of Scotland Group. He served as a partner and senior vice president with a private factoring firm for 10 years before moving on to White
Oak Commercial Finance, where he worked under Bob Grbic. Factoring now runs in his blood and it’s a business that he loves.
“For the last four years, I had the privilege of having Bob as my mentor,” said Efron. “He is one of the most experienced and respected veterans in the factoring world. While he will no longer be managing the day-to-day business, he will remain a trusted sounding board as Senior Advisor and I couldn’t ask for a better person to be able to consult with. I feel incredibly lucky to continue his legacy of service to our clients.”
Efron leads a team of factoring professionals who are young, ambitious and passionate about their work. He strives to foster camaraderie and a fun working environment where everyone feels challenged to grow personally and professionally.
“For so long, it was just accepted that young people coming out of college only wanted to go into investment banking or tech, or now A.I., and that factoring was some sort of dinosaur industry that would die off,” explained Efron. “But we have so much fantastic talent, people that want to make a career in our industry. They are attracted to the flexibility, creativity and collaborative nature of the business compared to traditional banking. As an organization, we’re really good about mentorship and a culture of continuously learning from each other. It allows us to think a little differently than other firms that have been doing things the same way for the last 25 years. This fresh energy and creativity allow us to be better problem-solvers for our clients and better colleagues for one another.”
Relationships are at the heart of WOCF, with a flexible, client-friendly approach that differentiates it from its competitors. Many lenders are compartmentalized with everyone having separate roles. One team sells the service and then passes the client along from one department to another until the transaction is funded, which can lead to miscommunication, delays and frustration for the client. At WOCF, the same account executive who meets with a potential new client is at their side throughout the entire funding process and will be their point of contact for any future funding needs. This seamless, responsive continuity of service is something clients really appreciate and a major reason why so many clients have been with WOCF for 10 years or more.
“The COVID years proved to be a litmus test for factoring companies,” said Efron. “Every lender says they will stand by their clients, but it’s when the unexpected happens that you find out who is for real and who is just playing lip service. I’m proud to say that we did not lose any clients during the pandemic, and we were able to capture significant business from companies who were not happy with how their previous lenders were treating them. We did what we always do. We stayed flexible, kept them funded with reasonable terms, and got them through the challenges they were facing. We didn’t force anyone out of business. Now, they know they can trust us, even in the most extraordinary times.”
It’s a powerful message for the new era at WOCF. The future of factoring looks bright.
To learn more about White Oak Commercial Finance, please visit https://whiteoaksf.com/commercialfinance
