| Needed: Accounts Receivable Brokers / Factoring Specialist Service: Accounts Receivable Funding / Factoring Type of Service Needed: Business Development; Can use Telemarketing or Email or Web Sites, Blog, your choice. This type of income stream should not take more then a couple of hours to set up and even less time each month if marketing online. However, the Brokers who earn six figures, EVERY year, use Telemarketing. The potential is overwhelming AND there is hardly any one working the field. (I don't use telemarketing because I take rejection personally. I work no more then 10 hours a month using database email marketing and earn an average of $19,000 USD per year (Reported to IRS on 1099s) Because of my tax business and tax school, I do not spend as much time as I should in Accounts Receivable. That's where you come in.) There are over 33.4 million businesses in American according to IRS statistics. Over one half of these businesses will need Factoring (Accounts Receivable Funding) at some point within their business cycle. The potential is overwhelming - No Fees Involved the Finance Companies Pays You USD! Small Business Owners worry for 3 months about cash flow, payroll, taxes, mortgage, etc. and have over $500,000 worth of Invoices sitting on the Accounts Receivable clerk's desk! Your job, should you accept this assignment, is to find Businesses who need immediate Accounts Receivable Funding (Factoring) The question is? Can you locate businesses who may have poor credit history yet have large invoices that they need to Factor? (These clients will always be your clients and often times they Factor their Invoices month after month) To ensure that you receive ALL of your commission you can contact us or YOUR client to find out the status of his/her funding. How You Are Paid? Sample of Compensation: Your Client: - XYZ Company manufactures widgets for the State of Texas.
- The State of Texas owes XYZ $800,000.00
- XYZ is a good company that has an opportunity to manufacture the same widgets for the State of California. However, the cash flow is such that they cannot start another major project until they receive payment from the State of Texas.
- You refer them - The Finance Company provides up to 92% of the Total Invoice amount to XYZ company within a week.
- The Finance company collects $517,000.20 of the Invoice amount the following month.
- The fees the Finance Company charges XYZ for the use of the monies is based upon time and specified rates. The fees were $23,896.00
- If this were your account, your compensation would be $2,367.52 for referring the client the first month and the balance of your fees will be mailed each month until the total Invoice is paid. Plus reoccurring factoring transactions.
Who Succeeds in this Business? - people who are persistent
- people who make a commitment
- self-motivated people
- online marketing persons**
- or people who are comfortable with the telephone
- people who already have a study income from other sources
To get a better understanding the work opportunity please visit the web pages at the top of the page on the left. We are an International Employer of Independent Contractors, however, you must be able to read, write and speak English. *** Detailed Information on Accounts Receivable Funding Factoring is the selling of your accounts receivable for cash versus waiting 30-60 or 90 days to be paid by your customer. | Financing Source | Factoring | Bank Loan | Leasing | Private Investor | | Application process simple and easy? | Yes | No | No | No | | Can Funding Happen FAST? | Yes | No | Maybe | Maybe | Can company keep all equity? | Yes | Maybe | Yes | Maybe | | Can owners avoid additional debt? | Yes | No | No | Maybe | | Can businesses get funded if they do not have a track record? | Yes | No | No | Maybe | | Can businesses get funded if they are not profitable? | Yes | No | No | Maybe | | Will the funding source collect your invoices? | Yes | No | No | No | | Will the funding source run a credit check on your vendors - BEFORE you sign a contract? | Yes | No | No | No | | | | | | |
The Q & A below will help you understand what Factoring is and is not. | FAQs - GENERAL FACTORING INFORMATION | | | Q: What Is A Factoring Company?
A: A commercial finance company that specializes in the purchase of invoices or accounts receivable for cash.
Q: Is factoring a new financing option?
A: Factoring has been used for centuries. It's one of the oldest forms of financing. Until recently, factoring was primarily used in the garment and textile industries. Today, factoring is a widely used, viable funding solution for all businesses that extend credit to credit-worthy commercial customers.
Q: How does factoring differ from bank funding?
A: Factoring decisions based on the credit-worthiness of your customers; a bank makes credit decisions based on your company's financial history, cash flow and collateral. Because factoring is not a loan, no liability appears on your balance sheet. Most importantly, funding decisions are made in days or hours-while banks generally take weeks or even months.
Q: Why would a company sell accounts receivable?
A: Companies with recurring cash-flow problems often can't afford to wait 30, 60 or even 90 days for invoice payment. They need cash to meet immediate financial demands of their business. Factoring provides this cash by funding the purchase of accounts receivable, often within 24 hours after invoices are created.
Q: What companies benefit most from factoring?
A: Factoring works well for startups as well as high-growth businesses, including those cyclical in nature. Factoring is also well suited for under-capitalized companies with strong customers, turnarounds or companies with cash-flow problems.
Q: What is the major benefit of factoring?
A: Immediate cash for accounts receivable instead of waiting 30, 60 or even 90 days for customers to pay.
Decision to finance company is based on the companies customers' credit-worthiness instead of your client's balance sheet. If the companies customers have good credit, your client can get financing, no matter how limited or problematic your company's financial history.
Q: What does factoring cost?
A: Rates are based on individual and specific circumstances. Factoring rates depend on the credit-worthiness of your customers, your average invoice, average payment cycle, factoring volume and other elements. In general, the cost of factoring is outweighed by its significant benefits: access to immediate cash, credit analysis, collection work and accounts-receivable reporting.
Q: Is factoring a type of loan?
A: No. Factoring is not a loan. It is the purchase of an asset, accounts receivable, at a discount by a financial institution called a factor. A traditional bank loan uses a companies assets as collateral and typically requires personal guarantees. Invoice factoring or account receivables factoring relies on the credit-worthiness of the customers, not your client's balance sheet or history.
Q: What is the difference between factoring invoices "without recourse" and factoring invoices "with recourse"?
A: When an invoice is factored without recourse, it is considered factoring on a "non-recourse" basis. In this situation, the factor takes the credit risk of the client's customers, thereby protecting the client from credit loss. When an invoice is factored with recourse, it means the client is ultimately responsible for payment, regardless of whether the client's customer pays.
Q: When is factoring NOT a good fit for a business?
A: Generally factoring is not a good fit in the following situations: - Your business operates on low margins (less than 10%).
- Your business has significant cash reserves free of cash-flow concerns.
- Your business serves as a sub-contactor to a less-than-established general contractor.
- Your business involves Medicaid or Medicare-based accounts receivable.
- Your business sells almost entirely to less than credit-worthy customers.
- Your business has a significant amount of accounts receivable that are already overdue.
| FAQs - HOW FACTORING WORKS | | | Q: What type of invoices can be factored?
A: You can factor almost any valid invoice for a service already performed or a product already delivered to a credit-worthy business or government entity.
Q. How much money can I obtain through factoring?
A: Typically 80-90% of the receivables immediately, and the balance (less fees) when invoices are paid.
Example: if you have $100,000 in accounts receivable on your books, you could immediately receive up to $90,000 in additional working capital. The balance due to you of $10,000 (less our fees) will be paid to you when your customer pays the invoice. If your sales increase, so will your receivables-and so will the amount of capital available to you.
Factoring may be the best way of financing sales, because the amount of available capital grows in direct proportion with sales success.
Q. What if the company has a bankruptcy, bad credit, poor financials or other derogatory information or history?
A: No problem, funding decisions are based on the credit-worthiness of the customers-not on your client.
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What types of Business use Factoring? A: Temporary Employment Agencies, Distributors, Manufacturers, Government, and Importers (Purchase Order Funding) History of Factoring Understanding Invoice Factoring and how it works can change the path of your small Business. Factoring has been practiced for centuries. The Romans sold promissory notes at a discount as did the Phoenicians. The word "factor" comes from Latin, the language of Rome. It means "to do" or "to make." The Pilgrims journeys to America were financed by advances from a Factor who provided the funds to pay for the journey. The Pilgrims repaid the money with earnings from America. Factoring to this day is an extremely common business practice in Europe whereas many American business men have never heard of it. This year alone thousands of businesses will Factor billions of dollars in accounts receivable, and they are doing it for profit, growth, and in some cases, their very survival Respectfully, Sandy Ingram Call 510 264-0502 to get started today. About Us
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