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  1. Hello Tracy,
    I remember listening to one of the ACFC CD’s where you were explaining how people could use their retirement or pension funds to invest with.
    Well, I have a client who has a $40K pension fund that needs to utilize $10K for starting a International Design Staging business.
    I know that MFS – Ralph & Flor factors small amounts, however it was you who taught me about the option of using a pension/retirement account.
    Would this be something that your company would factor, or who would you suggest that I present this to?
    Thank you so much,
    Sincerely,
    Marla
    Marla De Freese
    Affluent Funding Solutions
    (727) 471-9007

    marla@affluentfunds.com

    • Hello Marla! Thanks for the great question. If your client would like to use their retirement funds for the company start-up they would want to contact a self-directed retirement account administrator. We have used both Entrust and Equity Trust with good results. This would allow them to set-up a self-directed retirement account and learn the ropes of using retirement accounts for this type of investment. A factoring company would get involved after the company was set-up and had accounts receivable they wanted to factor for a cash advance. For additional information on small business factoring be sure to check out the Small Factor Series by Jeff Callender. Please feel free to contact me with additional questions. All the best, Tracy Z. Rewey

  2. Marla, as you’ve described this, your client doesn’t have an invoice to a business or government agency, which is what a factor buys. However once his business is under way and he has invoices to sell a factor, that could be done.

    If your client wants to invest this money in a factoring company and earn monthly interest payments from the factor, that can be done through one of the self-direct IRA companies Tracy mentions. Given today’s interest rates, most factors who accept such funds pay a far higher return than you can get for invested funds, though of course such funds invested in a factoring company are not insured by the FDIC as bank accounts are.

    People with IRA funds cannot easily use their IRA funds to fund their own factoring companies, though it can be done with some strong restrictions built into the IRA investment rules established by the government. In general however if someone wants to invest in a factoring company, it’s best to do so in a company in which the investor has no ownership at all. Hope this helps…Jeff

  3. GRealestate says

    Question: What is the mim amount financed for asset lending. Secondly what is loan ratio of the appraised value.

    Thank you!

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