These training courses provide factoring brokers, funders, and investors opportunities for ongoing education and networking in the world of invoice factoring. Mark your calendars for these upcoming events:

2010 IFA Factoring Conference

April 14 – 17 – Fairmont Scottsdale – Scottsdale, AZ

Bankruptcy & DIP Financing

January 13 – Intercontinental Miami – Miami, FL

Presidents & Senior Executives Meeting (Sold Out)

January 14 – 15 – Intercontinental Miami – Miami, FL

Luncheon Meeting in Conjunction with New York Institute of Credit

March 2 – Arno Ristorante – New York, NY

Account Executive / Loan Officer Training Course

June 3 – 4 – Treasure Island – Las Vegas, NV

The Law and Business of Factoring

June 7 – 8 – Treasure Island – Las Vegas, NV

How To Offer PO, LC’s and Inventory Finance

July 15 – 16 – Treasure Island – Las Vegas, NV

Transportation Factoring Meeting

August 26 – 27 – Intercontinental Kansas City at the Plaza – Kansas City, MO

Small Factors Workshop

October 14 – 15 – Rio All Suites Hotel – Las Vegas, NV

Factoring Sales & Marketing

November 4 – 5 – Rio All Suites Hotel – Las Vegas, NV

For more information or to sign up for any of these factoring events, please visit IFA online or call 1-800-563-1895.

1. Referral Fee
2. Establish Your Own Fee
3. Set Commission Fee

1. Referral Fee

Pros: Very Little Paperwork/Time.
Cons: Typically smaller commissions.
Cash Flows: Just about any cash flow can be “referred.”

The Referral Fee structure is the easiest, particularly if you already have a full time job and you have limited extra hours in the day.

With the Referral Fee structure you simply find a deal and refer it on to a Funder or Master Consultant that accepts referrals.

For the most part, you have no or very limited paperwork. You fill out a worksheet stating the person’s name and info about the cash flow. Once that information is sent, you are pretty much done. The funder will do all the work and if the deal closes send you a referral fee.

2. Establish Your Own Fee

Pros: Greater control, greater fees
Cons: More Paperwork (but not overwhelming).
Cash Flows: Mortgage Notes, Lottery Winnings, and Structured Settlements

The Establish Your Own Fee method takes a bit more work than the Referral Fee method but may double or triple your income.

With the Establish Your Own Fee method you will still fill out the worksheet but you will work with a couple funders to get the best “net” price from them. Once you have a “buy” number from a funder you simply subtract how much you would like to make and offer the seller something less.

How much less is up to you. On some deals you may only make $500, while on other deals you may make several thousand. It really depends on how much the seller needs and your negotiation skills. In the end, you are trying to find a fair price for your time and the seller.

Once the seller has agreed on a price, you will need to send the seller a contract agreeing to the terms. Typically the seller will not know your fee but that information will certainly need to be shared with the Funder (how else can they mail you check?!).

Depending on the type of cash flow deal, you may need to handle and/or pay for some of the due diligence, like an appraisal or title work for a real estate note.

3. Set Commission Fee

Pro: Potential Residual Income, Funder Does Most of the Work.
Con: Some ongoing follow up may be needed.
Cash Flows Include: Factoring Receivables, Delinquent Debt, and Pre-Settlement Lawsuits

A favorite among cash flow consultants is the ability to create residual income. Some cash flows, such as Factoring, do not allow the consultant to determine his or her own fee.

The cash flow consultant gets a “percentage” of what the Funder makes on a monthly basis. This percentage is established in advance.

Not all Set Commission Fees are ongoing. Some insurance based or delinquent debt fees are set and not reoccurring (a one-time purchase) – but the commissions can be very attractive.

There are also ways to create ongoing income on some cash flows such as mortgage notes using methods such as the “Buy Full, Sell Short” strategy using the partial purchase.

For the most part, which fee structure you use will be determined by the type of cash flow or the Funder. Given enough time in the industry you will realize the benefit of each of the ways to earn income!