Companies across the gulf coast are being awarded contracts to aid in the clean-up efforts. Invoices are being created for everything from absorbants and booms to staffing and shovels.

Oil Spill Cleanup Image © BP p.l.c

But like most businesses, it can take 30 or more days to receive payment on outstanding invoices. In need of funds to help meet the growing demand, business owners are turning to an age-old financing solution – account receivables financing.

The search for factoring companies

willing to fund these deals has been a hot topic in the networking forums. Several companies have expressed a willingness to consider receivables with BP as the debtor, including:

Transfac Capital at www.transfac.com or by phone at 800-458-6056 x118

ETG Capital at www.etg-capital.com or by phone at 212-300-6791

Marketing for clients in need of ar funding for cleanup supplies and services can yield good results for savvy factoring brokers.

Just realize that most funders are likely to require a direct obligation from BP along with other protective underwriting criteria. This is a developing niche so modifications to funding parameters are highly subjective to change as the story continues to unfold.

There is no doubt everyone wants to see an end in sight for the gulf disaster. And if the cash flow business can can aid the efforts, then all the better!

It’s actually pretty simple to keep the conversation rolling if you use these seven questions.

What type of business are you in?

How did you get started?

How long have you been doing this?

What do you like most about your business?

What are the biggest challenges in growing your business?

Do you ever have to wait for customers to pay you?

Would it be helpful to have access to cash without debt, whenever you wanted?

Why do these questions work?

Most people, especially business owners, like to talk about what they are doing. The questions help break the ice without being threatening. They let you shine as an attentive listener, all the while gathering information and gently directing the conversation towards the factoring services you provide.

At some point there will be an opportunity to tell them about your business.

Then you can simply respond:

“I help businesses get the money they need to grow, meet payroll, or pay bills. We provide financing solutions by turning invoices and accounts receivable into cash, in as little to 24-48 hours. Please give me a call if you or anyone you know ever needs working capital without debt.”

Be sure to exchange business cards and follow up the meeting in a couple of days with a phone call, brochure, or personalized email. Even if the new contact does not need to discount invoices, they might refer other companies in need of factoring services.

Networking for factoring prospects does not have to be painful when you use these friendly questions to let the business owners do the talking!

Looking for more ways to market your factoring services?

Be sure to read Marketing Tools For Small Factors and Consultants, a compilation of the best marketing techniques shared by 7 successful factoring professionals.

We have received a number of requests to rebroadcast the Attraction Marketing Webinar presented by Michael Ponomarew last month.

In case you missed it, the core mission of this presentation is to educate, enlighten and inspire Factoring brokers about Harnessing the Power of the Internet.

We live in a society experiencing a revolution in the way people communicate, find products, services and make decisions in Who they are going to do business with.

If you are serious about learning to do the right things and implementing a blue print to follow on How to Find, Expose and Educate your Factoring Prospect, this presentation is for you.

If you Aim at Nothing you will Hit it!

If you are not Hitting your goals, this is a can’t miss event!

Reserve your spot for next Wednesday, May 26^th at 9:00 p.m. eastern time by clicking on the link below. You will be extremely happy you did!

REGISTER HERE: https://www2.gotomeeting.com/register/210265251

Next Webinar Coming Soon…Stay Tuned!

Factoring Investor (FI) asked Duane Marchant, founder and president, to share some information on working with his company.

FI: What transactions will your company consider funding?

We handle the following receivables:

• Spot Factoring
• Manufacturers
• Temporary Employment Services
• Consulting
• Import Distributers
• Janitorial Services
• Defense Contractors
• Food
• Communications
• Government Vendors
• Computer Hardware/Software
• Professional Services, and Others.

We also partner with other factoring affiliate companies on Transportation, Construction, Medical and Other transactions.

We prefer deals $250 to $50,000 Account Receivables (AR) per month but will consider funding larger AR per month.

FI:  How did you get your start in the factoring business?

Duane Marchant:

After 25 years of professional business management experience over two public companies, I stepped down as CEO to start a private funding business in 1997 to provide alternative financing for businesses in need of working capital to sustain and grow their business.

I was first introduced to factoring by attending an “American Cash Flow Training Seminar,” in 1995.

FI:  What unique benefits does your company provide?

Our professional commitment to aggressively provide prompt client financing solutions, even when other lending institutions have said “no”.

FI:  What do you consider the best methods for finding deals?

• Strategic referral partners

• Small commercial bankers and mortgage brokers

• Writing and posting articles

• Networking on and offline

• Technological tools in cyber space

• Brokers and consultants

FI:  How do you handle commissions to cash flow brokers or consultants?

We welcome the opportunity to partner with brokers and consultants and offer competitive industry commissions.

Due to strong demand, we will be offering a “6 week Broker Factoring Taining Course” to help new brokers learn the factoring business and how to market their services more effectively.

FI:  What advice would you give to new professionals just starting out in the industry?

1.  Learn the factoring business so you can both talk the talk, and walk the walk.

2.  Establish a relationship with several factoring companies, learning their submittal requirements and establish a personal relationship with their representative. Factors are always willing to help the new professional learn and earn.

3.  Recognize this is not a get rich quick program and the new professional must have staying power. Remember you are building a business which takes time and consistent effort.

4.  Get mentoring and training from successful Master Brokers and learn from their experience.

5.  Don’t get sucked in by every new bell and whistle and don’t spend thousands of dollars. Most advise and training is free or minimal dollars.

FI:  What is the most common business mistake you see people make?

* Not having a written marketing plan.

* Failing to recognize the necessity of CONTINUOUS MARKETING, professionally, effectively, affordably, and consistently.

* Too many think of marketing their factoring services as an event, rather than as a constant repeated process.

FI:  Given the current economy, have you made any changes in the way you transact business?

We believe technology advancements in our economy have permanently changed the marketing arena.

The marketing audience is splintered among many different online media outlets. We are using online technology and social media as a significant part of our marketing efforts to reach a broader customer base, also to improve our customer service.

Bank financing is still very constricted and many businesses are seeking alternative financing. As a result, we have been busier factoring accounts receivable, than at any time in our 13 year history.

The federal government policy decisions and controls recently instigated may have changed bank financing for the unforeseeable future… the Factoring Industry is the beneficiary.

FI:  Where can people contact you to obtain more information?

AAA Factoring Group

364 West 1500 North, Suite 100

Centerville, Utah 84014

Phone: 801-292-1220

Email: duane@aaafactoring.com

Website:  www.aaafactoring.com

FI:  Is there anything else you would like to share with our readers?

We’d like to share a recent press release on our efforts in helping Haitian Amputees and Small Businesses Get A Leg Up From AAA Factoring Group.

FI Summary: Helping businesses raise cash through factoring account receivables is one of many cash flow categories where consultants can earn commissions by referring transactions to funding sources.  For a full listing of factoring companies please refer to the 2010 Directory of Factoring Companies and Service Providers.

Earning $50,000 – $250,000 per year?
Full-Time, Part-Time, or even Spare Time!

Today’s Credit Crisis can be Your Opportunity for Wealth! To say times are tough would be a gross understatement.

Unemployment rates are skyrocketing and the U.S dollar is trading at an all time low against the euro and yen. These and other factors have created the perfect storm for this recession and a downright disaster in the dying credit markets.

Small to mediums sized businesses that need the cash are turning to Factoring companies to sell their accounts receivable and get the cash they need fast!

That’s where you come in…

By leveraging your professional skills and background it’s possible to
earn $50,000 – $250,000 per year brokering factoring relationships.

Tuesday, March 23rd, 2010 – Two Times to Choose From!

Click Here for 2 p.m. EST

Click Here for 9 p.m. EST

We are sorry you missed this webinar. Please sign up below to be notified of our next event and the latest factoring news.

To find out more Register for this FREE Webinar where you will learn:

• Why now is the single best time in the history of factoring to be taking part in this lucrative $136.1 billion dollar industry
• How to work once and get paid over and over again for up to 5 years
• How you can leverage your professional skills and background to earn substantial income brokering factoring relationships
• How You can set Your Own Schedule, Build an On-Line business, and Control your Financial Future
• The Four Step process to start finding clients and earning income right after the Webinar

Come spend 30 minutes with Mike Ponomarew and discover how to make money in 2010 as a factoring broker!

Make sure to review these timely topics as you make plans for your accounts receivable financing business in 2010.

#5 – 10 Benefits to Factoring Invoices and Accounts Receivable

Every business has cash flow needs but options are dwindling in the face of a recession. Fortunately savvy business owners know they can still raise cash when banks say no to business financing. Read More…

#4 – Earn Consultant Fees Factoring Invoices with Millennium Funding!

Factoring account receivables is helping businesses through these tough economic times opening the door to earning opportunities for cash flow consultants. Find out how factoring brokers can earn fees by helping businesses sell invoices. Read More…

#3 – How to Obtain and Factor Government Contracts to Cash in on the $787 Billion Recovery Package!

The American Recovery and Reinvestment Act was signed into law promising to spend another $787 billion to stimulate the economy. While families and businesses have a death grip on their money, the federal and local governments are spending freely.

For better or worse, these billions will be spent so how can we cash in on our piece of the recovery? One way is to obtain or factor government contracts! Read More…

#2 – How I Run My One Person Factoring Business

Have you wondered what it takes to run a small factoring operation by yourself or with just a family member?

What do you need for day-to-day operations in terms of equipment, technology, documentation, and know-how? Read More…

#1 – Free Webinar for Business Owners and Factoring Brokers – Discover Why Yahoo Hot Jobs Names Factoring Broker as a Top 10 Profession for 2009!

When Yahoo included Factoring Brokers on their list of 2009 Hot Jobs it created a stir of activity.  Read More…

Business owners and cash flow brokers were eager to take part in this lucrative $127.6 Billion Dollar Industry. This led to a popular series of Free Webinars on How to Broker, Buy, or Sell Invoices for Cash! Read More…

Thanks to all of our faithful readers for making 2009 a great year at FactoringInvestor.com. We wish everyone a successful and prosperous 2010!

In the past, financial relationships were largely with your own personal banker. Nowadays, your car loan may be from a completely different financial institution than your home loan, business credit line, or credit cards.

The reason being is that, with competition, you are able to get specialized service and better pricing.

For the most part, Bank Factoring and a Factoring Company will have similar pricing, but price is not your only consideration.

A full-service factoring company comes out on top when you think of what additional benefits you receive…

Speed - Most banks are not known for their quick turn around. Factoring companies will typically fund the same day or within 24 hours. Factors use a lot less paperwork.

Credit Help – Today’s factors do more than buy your receivables. They can check out your prospective clients credit and help you avoid bad accounts.

Collection – A full service factor will supply you a collection expert. These people are good at what they do. They know how to maintain the credibility of your business, and also collect some money!

Collateral – Although banks suggest they are only interested in the receivables, they will also typically require a secured position in all your assets as security. This can be very problematic when you need additional funds and the bank has tied up your collateral. A Factor will usually only use the actual invoices as security – enabling you to continue to run your business as you see fit.

Flexibility – Face it, banks are not flexible. Today’s full service factors have to be flexible to compete with each other. They can think outside the box and most deals, unlike a bank, are not ‘pass or fail.” A factor will try to find a way to make the deal work for you.

All things considered, you are typically much better off dealing with a full-service factor than going to a bank that just happens to ‘also offer” factoring services.

For more information on improving cash flow with factoring be sure to read Unlocking the Cash in Your Company – How to Get Unlimited Funds Without a Loan!

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!