Accounts Receivable Financing - a.k.a. FACTORING

The process of transaction accounts receivable in the secondary market is called factoring.

Factoring is the purchase of accounts receivable from a business at a discount. Factoring allows businesses to collect the money they are owed immediately by accepting a discounted (reduced) amount of the invoice from a third party.

In a factoring transaction, a business sells one or more invoices to a factor. A factor is a funding source that specializes in funding accounts receivable.

When a business enters a factoring arrangement, the factor bases the purchase on the credit of the business's customers, not on the credit of the business itself.

Here's how it goes:

1. You contact me and we fill out a one-page "Client Profile" form to be sent to the factor.
2. We talk with a factor regarding terms and fees.
3. The factor sends out the contract Priority Mail.
4. You sign the agreement and mail it back.
5. Your account is open and the factor sends, or wire-transfers, an advance, to be determined at conference call.
6. Once invoice is paid, you get the remainder minus a fee, also determined at conference call.

First time around, you get funded in (5) FIVE working days!!!! Once your account is set up, you get funded within 24 hours. One thing to keep in mind is that I, as a consultant, get paid by the factor.

Secondary Market

Secondary Market.

For years all of us were led to believe, that the only way to get money was through the bank. And there WAS time, when that was the only choice. Then, around 1976, things got really bad for the banks: people defaulted on the loans and the bank was left with many non-performing loans, lines of credit, and so on. They got really stiff on their guidelines. If before 1976 banks were accepting 80-90% of applicants, now that number dropped to 10%. That left a whole lot of people with no way to fund their businesses, home purchases and so on. Thus...

... the secondary market was created, where instead of going to the bank, people went to mortgage companies and private investors to fill the need. And it really boomed, to be on concervative side. You end up paying slightly more for the service, but not enough to make it an issue.

This secondary market is a true gold mine! The shear availability is astounding! The guidelines are tempting! Dreams are happening!

Means to Survive, Tools to GROW!!!

I am a Certified Cash Flow Consultant working in secondary market of finances. What this means is that you don't have to deal with banks to increase your cash flow. Be it of a business or private nature, I can help you get the cash you need to help you Expand Your Financial Potential.