What Is the Cash Flow Industry?
The “Cash Flow Industry” is a consumer products industry that focuses on notes (private mortgage notes in particular) as well as certain other obligations such as…
- Structured Settlement Annuities
- Lottery and Vegas-Styled Gambling Award Annuities
- Private Business Notes from the Sale of a Business
- Inheritance Cash Advances (Cash Advance on an Inheritance held up in Probate)
- Advances on Pending Legal Settlements (Pending Cash Awards for product liability, wrongful death, or similar cases)
Similar to factoring consultants, independent brokers operating in the consumer-based Cash Flow Industry earn a “finder’s fee” when they refer an individual to a specific lender that will purchase a particular cash flow product, such as a private mortgage note, and provide the seller with a lump sum of cash. The lump sum “cashout” is always at some discount to the total value of the future payments. The broker (finder) then receives a commission percentage of the total lump sum cash disbursed.
Factoring Transactions: A Natural Add-on for All Cash Flow Brokers
Brokering factoring transactions is a natural (and powerful) product add-on for all of those individuals operating in the Cash Flow Industry. Much like the standard products found in the Cash Flow Industry, factoring is also a “discount” transaction. But there are some additional differences and benefits…
- Factoring is commercial in nature rather than consumer. This means there are never any professional licensing issues to be overcome
- Because factoring relates to business owners, locating prospects could not be easier. Virtually every business owner (whether operating in the U.S. or abroad) is a prospect for factoring or some other form of related alternative commercial finance product.
- Commissions paid in the factoring industry are residual and for the life-of-the-account. A single factoring client placed through IACFB can easily generate a monthly commission check for 3 year, 5 year, 7 years or longer.
- It is very easy to utilize inexpensive networking as a lead-generator for factoring clients simply by attending meet-up events sponsored by local organizations such as Chamber of Commerce, SCORE, and any local SBDC.
- Adding factoring as a new Cash Flow product area is very inexpensive and usually only involves adding a page or two to your active Cash Flow Broker website and picking up a copy of IACFB’s Factoring 101 broker training guide.
- For those wanting to become a little more “aggressive” in their marketing efforts, IACFB Campus Annex marketing material templates and marketing aids (flyers, brochures, cover letters, cold call scripts, mail stuffers, postcards, letterhead, envelopes, business cards, etc.) can be easily subscribed to.
CRM…a Critical Component
Although Cash Flow Brokers can typically operate without a CRM (Customer Relationship Manager), those taking factoring seriously cannot simply due to the ease with which you will generate prospects and leads. If you are a career-oriented factoring consultant entering the industry, one of the most critical “essentials” you will require from day one is a CRM. Pipedrive™ is a near-perfect CRM for factoring brokers at a very affordable price of just $15.00- $25.00 per month and Cash Flow Brokers will also find it to greatly assist in managing the consumer side of the industry. Cash Flow Brokers adding the factoring product will be “filling the bathtub” and building many lists of prospects in their first 30-60 days and you cannot possibly manage marketing to these lists without a quality CRM. At IACFB, we provide a link for a FREE 30 Day Trial of Pipedrive™ at the IACFB public website.