Factoring account receivables is helping businesses through these tough economic conditions opening the door to earning opportunities for cash flow consultants.
FactoringInvestor (FI) caught up with Michael Ponomarew (MP) from Millennium Funding to fill us in on how they are helping consultants earn fees by helping businesses sell invoices.
FI: So, tell me what has Millennium Funding been doing lately?
MP: Really nothing different than we used to do, just more of it. We continue to concentrate on the 3 main ways to secure deal flow:
- our own direct marketing,
- bank references, and
- the broker/consultant network.
We have become successful in securing strong relationships with major international banks which has resulted in reviewing a great deal of their turn downs – and as you would guess, this activity has increased significantly.
Our broker/consultant strategy continues to stress further education that focuses in on-the job training and we have partnered with the Business Accelerator Program to help us in facilitating this. These training programs have resulted in stronger deal flow for both the graduates of the training programs and Millennium.
FI: Given the current economy, have you had to change the way you do business?
MP: Millennium remains strong and has a great deal of liquidity. Based on our past performance record, our financing relationships remain strong and we are poised for tremendous growth.
We remain conservative in our approach to approving debtor credits however; we have made no significant changes to our Underwriting processes.
In respect to marketing we are concentrating on rolling out direct response campaigns on a consistent basis and increasing the number of touches or follow up with new prospects in the conversion process.
FI: What do you see as the best sources of deals in today’s market?
MP: Bank referrals, direct marketing programs and Internet optimization that are geared towards educating (and not selling) the benefits of factoring.
FI: A lot of cash flow companies are struggling in this current environment, what makes Millennium different?
MP: Millennium was built with strong business practices in place and we never wavered from this philosophy. Our funding decisions were based on two strong principals – purchase verifiable invoices to credit worthy debtors. Once you move from that strategy, you can get yourself in trouble.
In addition, in times like this you need constant deal flow to replace those clients that may be struggling. Our commitment to and support of the broker/consultant network has resulted in continued sales and revenue growth
FI: Millennium is involved in several different areas. What is your core business that you seem to always go with?
MP: Factoring, Vendor Insta Pay (which is new service that we provide), and Asset Based Lending through an affiliate partner.
FI: Where can people get a hold of you to obtain more information?
MP: Michael Ponomarew, Millennium Funding, 888.652.8298 ext. 45 or mikep@millenniumfunding.com
FI: Is there anything else you would like to share with our readers?
MP: With the state of the economy, downsizing etc. we have noticed an influx of new people interested in pursuing a part-time or full-time career in the Factoring Industry. Through the Business Accelerator training programs (webinar and on-site) we continue to provide initial and advance industry training and support to these individuals. Initially, the directors of Millennium Funding came through the industry as consultants. We understand what it takes to be successful and we view the opportunity to work with consultants as a sense of giving back to the industry.
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.
Hello Fred,
I was a student of yours some 6 years ago here in Florida and although I was totally impressed, learned a great deal and prepared myself (registered business name, business cards, 30- second commercial, etc.) I crumbled from the lack of confidence and the rejection I experienced at the onset of my factoring career. I had a full time job and I easily embraced and reverted back to my comfort zone. I dismissed factoring all together all these years.
I understand the principal behind it and believe in it but can’t seem to get a jump start. I have been out of work for months; doing some consulting (foodservice is my profession) and actively pursuing a new full time job! “It ain’t working!” Factoring could be the answer. I need a mentor; someone to give direction and encouragement, someone ready for a challenge. Know anyone? How can I get restarted?
There’s plenty of small businesses down here in South Florida! Thanks for always keeping me informed and for this concideration.
Alan
Fred Rewey added: Thanks for the comments Alan, I will send you the contact information.
…interested i starting in factoring as a consultant, however need some training. please help. sincerely lucinda
Interested in starting factoring. Had listened in on one of your training not too long ago. How does one go forward,,,I recall you may have a structured training or mentoring.
You are welcome to visit the Bookstore section of this site for more educational resources. You are also welcome to email the interview participant of this article for updates on their company’s current training programs.