Meet the New IFA Advisory Board Members: New Perspectives from Factoring’s Leaders – Part One

The International Factoring Association (IFA) has recently announced the addition of Amanda Bowman, Amity Mercado, Clayton Richardson, Ben Rutkevitz, Hailey Thomas, and Andrea Knoblauch-Wright to the IFA Advisory Board for a two-year term. These accomplished professionals bring a diverse range of expertise—from transportation and medical receivables to fintech innovation and portfolio risk management.

To introduce our newest board members, we interviewed each of them for a candid conversation about the most pressing challenges facing the factoring industry today—and how their firms are innovating in response. From economic volatility and tightening credit to regulatory pressures and the double-edged nature of technological advancement, their insights highlight how today’s factoring leaders are embracing agility, innovation, and risk management to redefine resilience and future-proof the industry.

Join us in part one of our two-part series as we get to know three of our newest members: Amanda, Amity and Clayton!

Amanda Bowman - Senior Vice President, Sales Director, eCapital

What are the most significant headwinds or disruptions you're seeing in the factoring space right now—and how are you adapting your business model in response?

The factoring space is navigating a mix of economic uncertainty, rising regulatory scrutiny, and rapid technological change, all of which are reshaping how we operate. 

Economically, higher interest rates and inflationary pressures are putting strain on small and mid-sized businesses, which directly impacts client demand and credit risk. At the same time, we’re seeing increased regulation at the state level, particularly around disclosure requirements, which calls for even greater operational rigor.

On the technology front, disruption is accelerating, in a good way. Innovation, especially in AI and automation, is opening new ways to assess risk, streamline onboarding, and deliver a faster, more intuitive client experience.

At eCapital, we’re responding by doubling down on agility. We’ve built a flexible platform that allows us to pivot quickly, whether that’s adjusting underwriting standards, enhancing compliance processes, or investing in new technologies. We’re focused on staying proactive and evolving alongside our clients so we can continue to deliver value no matter the market conditions.

From your perspective, what’s the most meaningful way the factoring industry has changed—and what do you think we still need to work on?

When I first got into the industry almost 16 years ago, everything was slow and incredibly manual. We’d spend full days on the phone verifying invoices, then stuff envelopes to physically mail to debtors, many of whom wouldn’t even accept digital documents back then.

Fast forward to today, and the transformation is huge. Technology has completely changed the game. What used to be repetitive and paper-heavy is now largely automated. We’re using AI, bots, and smart systems to spot fraud, post cash, and fund invoices, often in near real time.

It’s made factoring faster, more efficient, and definitely more scalable. But with that progress comes new challenges, especially around fraud. As schemes get more sophisticated, we as an industry must stay one step ahead. At eCapital, we’re tackling that by blending advanced technology with experienced teams. That combination helps us catch issues early and protect our portfolio before problems surface.

How does being part of a large, acquisition-focused platform shape your sales strategy, especially when entering new markets or absorbing another company’s client base?

Being part of a large tech-enabled company really gives us an edge. We have the resources to move quickly, structure creative deals, and lean on strong back-office support, so our sales teams can stay focused on building relationships and delivering tailored solutions, even in more complex or shifting environments.

When we make acquisitions, we’re thoughtful about fit. We look for businesses that align with our strengths, often in markets we already know well, with teams that operate in a similar way. That alignment lets us hit the ground running. We use a proven process to compare approaches, keep what works, and quickly bring everything into sync.

It’s a model that helps us grow strategically, support clients through the transition, and stay competitive as we expand our business.

Amity Mercado - CFO/COO, nFusion Capital

From your perspective, what’s the most meaningful way the factoring industry has changed—and what do you think we still need to work on?

The most meaningful shift in the factoring industry today is the transition to fintech, and we are right in the middle of that curve. Legacy firms are still rooted in traditional models, and others are pushing full speed into automation and platform-based lending. The challenge is that while technology has dramatically improved efficiency and scalability, it has also introduced a whole new category of risk to manage.

In the past, we had eyes on the paperwork. We verified invoices manually and auditors perceive that verification is still happening. But today, many transactions happen system-to-system — EDI files connecting directly with lending platforms. We have transitioned from manually verifying individual invoices to reconciling portal data, which saves time. However, when dealing with large enterprise account debtors, you must trust that their and your client’s systems are not compromised. Unfortunately, the bad actors who commit fraud are becoming more sophisticated. As an industry, we have not yet answered the question of how to better safeguard against fraud in a digital-first environment.

Concentration risk adds another layer. A client may ask us to advance against a significant A/R concentration for a strong debtor, which creates greater exposure risk in a digital-first environment. Even when we stay disciplined in our underwriting and when the data flows directly from a large debtor to our system, we must be sure of what we are advancing against, as the exposure can be significant.

There are some red-flag systems out there, ours included, that use basic rules and alerts to catch anomalies. They are suitable for catching human error, but not sophisticated enough to stop intentional fraud. While we have seen firms build custom technology to support their niche — mainly in the transportation sector — it is still early. Most solutions on the market don’t scale well across industries, and we still lack real industry-wide best practices.

So yes, technology has changed everything. It has made factoring faster, leaner, and more appealing to a new generation of clients. But it has also made us more vulnerable in ways we have not fully acknowledged. We need better tools, better guidance, and a more intentional approach to technology-driven risk management. We must lean into the technology and lending software, and our platforms must communicate better with the client systems. Until then, we are in that dangerous place of not knowing what we don’t know, which keeps me awake at night.

What outside trend—economic, regulatory, or technological—is having the biggest impact on your factoring portfolio right now?

As Chief Financial Officer and Chief Operating Officer at nFusion Capital, I am responsible for identifying risks we can mitigate. This was easier when we were smaller, but it has become harder with technological advancements. I know many across our industry worry about managing those same risks.

The most significant outside trend impacting our factoring portfolio right now is the rapid shift toward digitalization and fintech, and the lack of clear standards around it. As more clients rely on EDI files and integrated lending platforms, we no longer review traditional paper invoices, opening up real fraud exposure.

The technology platforms available to factors and lenders are quickly evolving, but technology partners often leave it up to us to connect the dots, build safeguards, and invest in customization. We are capital providers, not software engineers, yet we are increasingly expected to solve complex technical problems.

Industry associations such as the International Factoring Association do an excellent job of helping us think about risk with concentrations and cross-aging and offering best practices from that perspective. However, there are no widely accepted industry guidelines for evaluating fintech risk or deciding what is acceptable regarding data integrity and file imports. The International Factoring Association could lead in connecting thought leaders across the industry to help establish those guidelines.

Factors and lenders always need to be vigilant about changing government regulations and their effects on their portfolios, lending practices, and clients. For instance, Texas Gov. Greg Abbott signed House Bill 700 into law on June 20, 2025.  This legislation, which amends Title 5 of the Texas Finance Code, primarily relates to disclosures for certain commercial sales-based financing transactions and registration of commercial sales-based financing brokers and providers. This legislation will likely pose significant challenges for merchant cash advance (MCA) providers and impact other market participants, in favorable or unfavorable ways. Staying abreast of regulations is critical to be successful.

What’s been your most strategic investment or decision in growing your portfolio—and how did it change your trajectory?

One of our most strategic turning points came when we funded an energy sector transaction, which was in the middle of a turnaround. That deal brought unexpected visibility — we were nominated for Factor of the Year by an industry organization thanks to a broker’s submission, and the publicity that followed was game-changing. It put us on the map. Suddenly, salespeople reached out to us unsolicited, wanting to be part of the team we were building.

A second pivotal move was acquiring an ABL portfolio during the pandemic. That allowed us to offer factoring and ABL solutions under one roof, which significantly broadened our appeal in the market. It also allowed us to build a more dynamic, product-agnostic sales team — people who could bring in opportunities from any industry rather than organizing staff by industry verticals.

Not every decision we have made in our history has worked as planned. For example, as part of our growth strategy we tried scaling three portfolios simultaneously, which required greater resources than anticipated. But the lessons from those missteps sharpened our focus. We doubled down on areas where we had real differentiation, like construction, where we have deep expertise and fewer competitors.

The combination of earned third-party validation expanded capabilities, and a flexible sales model had the most significant impact on our growth trajectory.

Clayton Richardson - CEO, American Funding Solutions

What are the most significant headwinds or disruptions you're seeing in the factoring space right now—and how are you adapting your business model in response?

The general economic malaise. Writing this in mid-June, there’s been a confluence of factors that have stalled “action” of all kinds. Namely, Fed uncertainty; multiple geopolitical conflicts; variability of potential outcomes related to new trade policy. The result we’re seeing is both clients and debtors pressing pause. Budgets frozen, term sheets unsigned, volumes flat.

This is all against the backdrop of underlying data that suggests that the US economy is still relatively healthy and trending in the right direction. Our response has been two-fold. Patience in areas we cannot control and pushing in situations where we think we can make a difference.

What was the turning point in your career that made you fully commit to the factoring industry—and how has that shaped your approach to growth or risk?

Coming from outside the industry, I was so impressed by the entrepreneurial nature of the factoring space. For a decade, I worked in Fortune 500. Though I did always have an orientation towards more risk and growth.

The turning point for me was witnessing the unsurmountable challenges we ran into when trying to change course. Large commercial credit is notorious for stiff structure and attacking creative thinking. The challenge they face is far more cultural than technical. It was at that point that I felt compelled to make the jump to factoring.

My mindset on risk and growth is still grounded in the principles of credit. The shift for me has been related to the broad spectrum of opportunities we have. There are industries where we lack the institutional knowledge to be effective. However, we’re able to roll-up our sleeves and pursue the vast majority of the opportunities that come across our desk.

What’s something that surprised you about factoring when you first entered the field?

The level of servicing and client management required to properly handle a portfolio. Factoring requires more people, process, and structure in support of customers. Using overhead expense relative to portfolio size as a proxy, factoring requires an investment in client servicing that is multiples of our peers lending in CRE, Mezz, etc.

However, that investment, and time spent interfacing with clients, does translate into more meaningful client experiences. Truly making us a partner and valued service provider. While our peers tend to have purely transactional relationships with their clients.