2025 IFA Roundtable Summit Preview: A Small Factors Roundtable Conversation

The International Factoring Association is looking forward to offering the factoring industry’s newest and anticipated in-person gathering, the IFA Roundtable Summit. As a part of the IFA Roundtable Summit, the Small Factors Roundtable will feature two moderators that provide a dynamic and thought-provoking platform for discussions that will delve into the specific advantages and strategies employed by Small Factors to address the financing needs of businesses of all sizes. Join us for this insightful Q&A with our moderators Melissa Donald, President, BAB² Ventures and Amanda Villarreal, Managing Member, PLEX Capital, LLC to share their expertise for fellow Small Factors.

Can you tell us a bit about your background and your journey in the factoring industry?

Amanda: Let’s be real—no one wakes up one day and says, “You know what? I want to get into factoring.” Most of us land here by accident. That was definitely me.

Back in 2007, I was a young woman trying to figure out what was next. I wasn’t fulfilled. I didn’t feel seen. I applied for a job at a factoring company without even knowing what factoring really was. It turns out that company is now the largest freight factor in the U.S.—based right here in Overland Park, Kansas (I won’t say names, but if you know, you know—ha!).

Ten months later, I was recruited by a trucking company launching its own factoring division—TAFS. I was employee number one (yes, I claim that title!). On my first day, they told me the person who had the idea for the division had been deported, and they weren’t even sure if they were going to keep it open. Then they showed me to a desk and said, “There’s your phone and computer. We’ve got five Spanish-speaking clients, and no one here has been able to talk to them. Good luck.”

That was my crash course. I dove in headfirst. I built real relationships with those clients. They weren’t just customers—they were business owners trying to survive and grow, and I saw myself in them.

A year later, my now-business partner, Josh Goode, joined the team as my boss. We started building something real—systems, sales, funding processes, and client trust. By 2019, we were running a fast, efficient, and profitable operation. But it was time to bet on ourselves. We left and launched PLEX Capital. Then came the twist—a very aggressive non-compete kept us completely out of freight factoring. At the time, it felt like a setback. Looking back, it was the best thing that could’ve happened to us.

That push forced us to explore beyond what we knew. We started funding service-based businesses across a variety of industries. That’s when our mission became clear: to level the playing field for small business owners—especially women, minorities, and founders who’ve been overlooked by traditional finance.

We work with people from all walks of life. But as a Mexican woman, I carry deep pride in the impact we’re making. There’s something powerful about looking at our portfolio and realizing that over 90% of our clients are women- and minority-owned. And that didn’t happen because of a marketing plan—it happened because we built trust, delivered consistently, and created something real in an industry where so many doors stay closed.

We know how hard it is to access capital early on. And when small businesses don’t get funding, the entire community feels it. But when they do? They hire people. They create jobs. They build legacies. Factoring wasn’t the plan—but it became the path. And now, we’re not just in the business of funding invoices—we’re in the business of building futures.

“We’re not here to blend in. We’re here to change the game—for the better.”

Melissa: My first career was in commercial collections, and I learned what factoring was in 2001,  two weeks before I interviewed for my first job in the industry. A case we had obtained judgment on paid in full and I asked our attorney how they had accomplished that. I was told “their factor found out about our judgment and made them pay us.”  I asked, “what is a factor?”  I took the job I interviewed for and never looked back.

That company was a small factor who fancied itself a big player, so my learning curve was straight uphill – never really having the opportunity to learn the fundamentals of how factoring was supposed to work.  I spent five years chasing money through lawsuits and learning what not to do.

In 2007, I branched out on my own and took the approach that I was going to be hands-on and approachable with my clients, only networking and onboarding clients within a 2-hour drive of my house.  Knowing that I could run into clients in the grocery store changed how I managed every relationship in my business from onboarding through the end of client relationships.

Now, in 2025, the core of my client base is still focused locally, in the San Francisco Bay Area, although my network has expanded to include most of the Western United States.  I will take on clients in other areas of the country, depending on the referral source as I only do business by personal referral.

For those unfamiliar, how would you describe the unique role and value Small Factors bring to the commercial finance industry?

Melissa:  Our unique role is that we are hands on, and we can do deals that no one else can or will do because we are hands on.  Oftentimes, we are talking about the small local deals that come through the Chamber of Commerce.  In many cases, the account debtors are also smaller, local or regional businesses who are not going to have a big presence or impressive public record reporting.  We know them though…we probably know some of the major players at that account debtor.  We have the ability to leverage relationships differently in our local communities that larger, more anonymous factors are not going to be willing or able to do.

The importance of collaboration is critical because I know the players in my community and my fellow small factors know the players in their communities.  When we participate and collaborate with each other, we can share knowledge and resources (and capital) to mitigate each other's risk.

I don’t hesitate to call someone and ask a question if I am not sure about how to handle something or if a situation comes up that I have never dealt with.  No one in the small factor community is keeping score.

The beauty of our space is that we are not each other's competition.  Ever.

Why is it so important for Small Factors to collaborate and learn from one another in today’s environment?

Amanda: Collaboration among small factors is absolutely critical—especially because we’re all navigating the same challenges. If you own a factoring company, you know exactly what I mean. We’re managing fraud, client risk, debtor behavior, and cyber threats. This isn’t an easy business.

That’s why looking out for each other matters. When we share techniques, systems, tools, and experiences, we make the entire ecosystem stronger. We build resilience—not just individually, but collectively.

Fellow factors have also been some of our best referral sources. Yes, we invest in marketing—but truthfully, most of our clients have come through referrals. And a good percentage of those? From other factors. Not everyone has the same risk appetite or client profile, and that works both ways. We’ve established reciprocal referral relationships where we either pay or receive compensation for deals. It’s a win-win that also creates new revenue streams.

Small factors don’t have the luxury of massive compliance departments, so peer collaboration becomes a powerful defense mechanism. Sharing red flags, onboarding challenges, or bad debtor intelligence can literally help each other avoid costly mistakes.

Some of our best internal processes didn’t come from consultants—they came from conversations with other factor leaders. When we talk about what’s working, we all grow faster and make better decisions.

Clients benefit, too. Sometimes they outgrow our niche or pivot to an industry we don’t serve. Rather than lose them, we refer them to a trusted factor. That protects the client relationship, keeps funding within the ecosystem, and reinforces our credibility.

Let’s not forget—we’re still working against outdated perceptions of the factoring industry. When we operate with transparency, ethics, and mutual support, we elevate the entire space.

At the end of the day, collaboration isn’t optional—it’s strategic. It protects us. It creates value. And it keeps us all moving forward—together.

What is the biggest challenge currently impacting the way small and independent factors do business, and how do you foresee the roundtable discussions helping to address that challenge?

Melissa: I would be remiss, as an AFA Board Member if I didn’t point out that the ongoing threat of disclosure regulations disproportionately impacts the small factor space.  Very few, if any of our transactions will ever be exempted from any of the regulations that have been floated around the country.  It is harmful and scary for us to ever consider venturing out.

The other biggest challenge I believe we continue to face is that of the slow drip of shifting trends.  It is easy to overlook the slow drip when you are so involved with the day to day with your clients.  In the small factor space, it is hard to have a good system of checks and balances because there is often only one or two people in the whole business.  When trends begin to shift, but it is a slow shift, it is easy to ignore it until suddenly the client is in trouble and you have to enter a work out.

As small factors, we wear a lot of hats and sometimes we have to be able to change those hats with lightning speed.  The problems come when we find out we didn’t change fast enough, and we are a couple of hats behind where we are supposed to be.

The 2025 IFA Roundtable Summit will take place October 13-15 in Denver, CO. This event will consist of three distinct, concurrent meetings: the Sales Executives Roundtable, the NEXGEN Leadership Roundtable, and the Small Factors Roundtable. Each roundtable operates independently with specialized discussions, while all networking functions will be combined to enhance collaboration and foster broader connections among all attendees.

Come join Melissa, Amanda, and other small factors for an invaluable opportunity to exchange ideas, explore the dynamic landscape of small-ticket factoring, and strengthen professional networks while helping to build the foundation of our industry’s future.

Click here to register for the Small Factors Roundtable Today!