Would You Like To Become  a Cash Flow Consultant?

The pros and cons about the cash flow (accounts receivable factoring) business

Accounts receivable factoring has become a big business for small businesses. Factoring has always been available to large businesses for a long time. However, just since the 1990's it has  become available to small businesses. There are many funding companies that are available for making factoring deals. There are many companies that need factoring to help them suceed. The problem that funding companies have is finding the companies that need funding. That is where the "Cash Flow Consultant" (CFC) comes in.

There is a need for a "middle man" in this business. The CFC is that "middle man"or broker. This person searches for prospects for the funding companies and when the CFC finds a prospect they ask certain questions and get certain information from the client and passes that information on to a funding company. If the client and the funding company come to an agreement on the terms of the factoring, then the CFC receives a fee or commission for their part in the transaction. Of course there are many varibles involved as to the cost of the factoring to the client and the pertcentage received by the CFC. All these varibles vary from funder to funder.

Finding prospects or clients is not easy. The CFC has to do a lot of work in order to find the clients for these funding companies. This is done in many different ways: direct mail, networking, calling, internet, advertising, just to name a few. If you are thinking about a career in this field, be prepared to work hard. The clients don't come easy, and when you do find them, they do not always qualify.

In many cases when a receivable factoring deal is finalized, it usually continues over a period of time. For example, when a company factors some or all of their monthly receivables, that means that the CFC will receive their commission for as long as that company continues to factor their monthly receivables. This is almost like a residual type of income. So instead of receiving a one time fee for the CFC's work, they will receive a monthly income for as long as the client continues to factor their receivables. If the client is factoring a large amount of receivables, the CFC will enjoy a good income for that period of time.

There is a lot to learn about receivables factoring should you become involved as a CFC. Factoring is just one of the many avenues in the cash flow business. There are many other profitable niches in the industry ie, equipment leasing, purchase orders, business notes, mortgage notes and numerous others. Should you consider this career, please do a lot of research and prepare yourself for a lot of learning and hard work.

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