Free Teleseminar Create Multiple Streams of Income
Published: Mon, 12/03/12
to small business entrepreneurs."
-----------------
THE PAPER SOURCE CASH FLOW EXPRESS
Dec. 3, 2012
,
Being a factoring broker is one of the few opportunities
that allows you to create multiple streams of income.
What is factoring? It is simply a financial transaction whereby
a business sells its accounts receivable (i.e., invoices)
to a third party at a discount. The third party is called
a factor.
Today Robert McMahon, president of Aegis Factors, explains
more about factoring in the article below.
If you want to explore more and find out how you can create
multiple streams of income, be sure to mark your calendar to
join Robert and me for the FREE TELESEMINAR THIS WED. (Dec. 5),
2 p.m. Eastern time/ 1 p.m. Central, Noon Mountain and 11 a.m.
Pacific.
When it starts in your time zone call (712) 451-6000
and when prompted enter Access Code: 903809#
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
www.PaperSourceOnline.com
www.PaperSourceUniversity.com
www.PaperSourceSeminars.com
**********************************************************
The Most Powerful Financial Tool Aavailable
To Small Business Entrepreneurs
by Robert McMahon, President, Aegis Factors
For note brokers seeking additional brokering opportunities,
factoring continues to hold its allure, primarily due to its
potential for exceptional residual commission earnings and
a general lack of regulation for industry brokers and
intermediaries.
As many PAPER SOURCE JOURNAL readers already know, factoring
dominates the area of alternative commercial finance which also
includes asset-based lending, purchase order finance, merchant cash
advances, and a host other ready sources of trade finance
accessible to small, early stage business owners when traditional
bank loans are unobtainable.
Factoring is strictly B2B finance where a finance company
(known as the factor) purchases invoices each week from a
business (known as the client) for immediate cash.
While simple in nature, factoring is literally the
most powerful financial tool available to small business
entrepreneurs. It allows them to grant 30, 45, even 60
day payment terms to customers for services performed or goods
delivered, yet they themselves receive immediate cash to meet
their weekly working capital needs, pay suppliers on a timely
basis and especially to meet their own payroll obligations.
The growth of factoring continues to be impressive in today's
credit-impaired economy. As the job market still shows little
sign of improvement, more and more individuals are forced to
start their own businesses. Factoring is one of the few
sources of finance available to such startups.
Factoring: The First Line of Credit Defense
Factors are universally known for their ability to provide
extremely creative financing solutions for small business
through the purchase of their accounts receivable.
A powerful additional benefit of factoring, which is often
overlooked, is the factor's account debtor credit analysis.
For small business entrepreneurs, this additional service
can literally save their company in challenging
times like today.
Factors represent a "first line of credit defense" for
entrepreneurs entering into service or production contracts
with large customers. Many small business owners feel that large
companies, cities, municipalities and states, must have good
credit and the capability to pay their bills. In fact, nothing
could be further from the truth.
**********************************************************
Learn about the huge profit potential of being a factoring
broker in the FREE TELESEMINAR with Robert McMahon, president
of Aegis Factors, THIS WED. (Dec. 5), 2 p.m. Eastern time/
1 p.m. Central, Noon Mountain and 11 a.m. Pacific.
When it starts in your time zone call (712) 451-6000
and when prompted enter Access Code: 903809#
**********************************************************
Because many factors provide financing on a non-recourse basis
(if the customer is insolvent and can't pay its bill, the
factor absorbs the loss), factoring offers a proven method
of avoiding catastrophic loss from customer failure.
Factors were, in fact, some of the first credit rating agencies.
During (and even before) the Great Depression and long before
Experian, Equifax and Trans Union became household names,
apparel and garment manufacturers would seek the advice of
factors regarding the payment history and pending extension
of credit to large retailers. This "Old Line" factoring was
always non-recourse and protected the various manufacturers
from loss due to a surprise customer bankruptcy.
An Exceptional Opportunity for Factoring Brokers
Because of the growing insolvency crisis among states, cities,
and municipalities, factoring has become even more attractive
as a financing mechanism for young companies and especially
those whose business models include providing services and
goods to such entities. And, as the derogatory news headlines
become more commonplace regarding these growing fiscal woes,
more in-the-know business owners will be looking for both
finance and credit insurance for their invoices payable by state
and local governments.
For factoring brokers, now is the time to put forth some marketing
effort in this area of business development and opportunity.
From a marketing standpoint, these risks of non-payment are real,
growing, and need to be pointed out to the owners of small
companies where exceptionally slow payments (or no payments) by
distressed governmental entities can quickly cause a "cash flow
crisis". Brokers should have at least one brochure or flyer
specifically designed for this target market and a good sales /
cover letter explaining this "clear and present danger" in more
detail.
As former Obama Chief of Staff and current Mayor of the someday
likely-to-be-insolvent city of Chicago said,
"You never want a serious crisis to go to waste--and what I
mean by that is an opportunity to do things you didn't think
you could do before."
Rahm Emanuel
Learn about the huge profit potential of being a factoring
broker in the FREE TELESEMINAR with Robert McMahon, president
of Aegis Factors, THIS WED. (Dec. 5), 2 p.m. Eastern time/
1 p.m. Central, Noon Mountain and 11 a.m. Pacific.
When it starts in your time zone call (712) 451-6000
and when prompted enter Access Code: 903809#
**********************************************************
Here's how to get the Registry of Note Investors:
http://papersourceonline.com/registry-of-investors/how-to-get-in/
**********************************************************