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cashflow industry introduction. How to find cashflow instruments to broker or invest in. factoring, mortgage loans, purchase order invoicing

Transcript of Cashflow Industry

  • 7/17/2019 Cashflow Industry





    Structured Settlements

    Consulting For Profit

    ash flow Industry

    in the


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    Chapter One

    Career ProfileLife as a Commercial Finance Consultant. 3

    Services in Demand.. 4Challenges / Income... 5Investment Opportunities... 6Personal Qualifications.. 7Ingredients for Success.. 8

    Chapter Two

    Description of Products and ServicesGetting the Job Done..11Commercial Factoring... 12Purchase Order Finance. 13Asset-Based Lending. 14

    Equipment Leasing.15Discount Mortgage Notes...16Business Notes... 17Structured Settlements... 18Other Paper, products and Services... 19Other Services and Products

    Chapter Three

    Setting Up Your OfficeHome Office.. 23Commercial space. 24Other Areas of Importance. 25Image and Customer Perspective

    Chapter Four

    Marketing / ProspectingDirect Marketing & Networking 29Relationships, List building & Database Management. 30Prospecting, using the Internet & Your company Website31Promotional Workshops & Seminars.32

    Chapter Five

    Getting StartedTraining with DataMax.. 35Website Construction & Hosting Services36Questions & Answers Area... 37



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    INTRODUCTIONThis guide is designed to provide you with a no-nonsense introduction to

    the business of consulting in alternative commercial finance or what is commonlyreferred to as the cash flow industry. It was written by industry professionals withmany years of experience in the areas of product knowledge and training as well

    as marketing and prospecting methods utilized by seasoned industry businessdevelopment personnel. Most importantly, Consulting for Profit in the CashFlow Industrywas written to address the myths and misconceptions about industrycareers which are most commonly proliferated by late night business opportunityspecialists and make-a-million-overnight training gurus.

    Whether you call it the alternative commercial finance, business paper,or cash flow, the business of becoming a highly compensated industry consultantis multi-faceted, demanding, and, at times, complex. It is a business of polish andsophistication certainly for which not all come prepared. It definitely is not, as thelate night business opportunity maestros might tell you, a business that anyone cansucceed at. Successful industry brokers and consultants are much sought after andvery, very highly compensated. If success in the industry was easy to accomplishand something that anyone could attain, rest assured that everyone would bedoing it.

    Most certainly, to enter the industry you will need to acquire a significantamount of knowledge about alternative commercial finance and its componentssuch as accounts receivable factoring,purchase order finance, commercialcontract finance, export-import trade finance, asset-based lending, andforfaiting.You may also wish to explore alternative consumer financing transactions such asseller carry-back mortgage notes, owner financed business notes, structuredsettlement liquidations, mobile home paper, tax certificates, and lottery / gamingannuities. To become successful, your ability to obtain considerable knowledgeabout these and many other areas of alternative commercial / consumer financingis essential.

    Paramount to your success, however, will be your ability to both marketand prospect efficiently and competitively and to generate the sufficient leads,prospects, and ultimately clients which will generate your salary, consulting feesand commissions paid to you from financing sources. As a consultant, you willneed to come prepared to networkby joining referral organizations such as localChambers of Commerce, trade organizations, andfraternaland charitable clubs.You will need to establish and implement productive lead-generating directmarketing campaigns and efficiently organize and manage each name / leadthrough the sales process. Most importantly, you must acquire expertprospectingskills to qualify leads that present quality client potential and to discard the timewasters and information seekers.

    There are many other facets of the industry that you need to become

    familiar with. This guide was created only to introduce you to the necessaryconcepts, marketing skills, and product knowledge that you must acquire toseriously enter the industry. It is designed to truthfully inform you about industryopportunities and to assist you in making the important career decisions necessaryto successfully become a highly compensated consultant in commercial finance.

    Robert McMahon

    Founder and PresidentAegis Factors, Incorporated



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    Experience knowledge business

    Sourcing new career challenge

    business growth entrepreneur

    New skills consulting income

    Highly compensated lucrative

    commi Downsi zing fee

    sourcing retrainExperience

    knowledge business Sourcing

    new new career challenge

    business growth entrepreneur

    New il professional income

    Highly compensated lucrative

    eginning your new career as a

    consultant in commercial finance

    will require a significant amount of

    study time and reasonable amount of start-

    up capital. One of the most essential steps

    when beginning this or any new career is

    that you spend some time reflecting on

    your goals and the challenges ahead.Make sure you enter with the industry with

    the determination necessary to succeed

    and to see it through to the end.


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    ONGRATULATIONS! You areexploring the possibilities of anew career as a consultant in

    alternative commercial finance. Manybegin seeking new careers as a result ofcorporate downsizing, lack of advance-ment potential, or simply job loss due tooutsourcing. To be certain, much of thesecurity that was once a benefit of beinga productive team player for largedomestic corporations is a thing of thepast.

    More and more jobs are lost each and every dayto outsourcing. In New America, even statesponsored service sector jobs are now dutifullyhandled by residents of India, Pakistan, and otherareas of the Pacific Rim. Each year, more and moremanufacturers find they must relocate productionfacilities to mainland China or face fierce andinsurmountable competition from others that do.Even those companies that manage to remain competitivewithout relocation, do so only through downsizing,salary reductions, and employee benefits elimination.

    Whether you are acting reactively as a result of alreadyexperiencing some or all of the above or proactivelybecause you can clearly see that the handwriting is on thewall, you are at the very least, exploring the possibilitiesof a career move that will allow you to build a lucrativeconsulting business, enjoy an upscale financiallycomfortable lifestyle, and take pride in a profession ofprestige and distinction.

    A career as a consultant / broker in alternativecommercial finance can provide a virtually unparalleledstandard of living for those equipped for the task and

    driven by a need for success. Productive professionalswill enjoy extraordinary income potential, inherent jobsecurity, and the exceptional freedom and flexibility thatcomes with being your own boss. As an industryconsultant, the services you offer are constantly indemand by individuals, small business owners, and largecorporations alike.

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    YOUR SERVICES ARE IN DEMANDThe career opportunity you are exploring, consulting,

    is one of the most rapidly expanding in business today. Yournew area of expertise, however, is one in which few consultants

    practice. Consultants generally bring their training,, experience,and knowledge to bear to provide solutions to problems wherein-house know-how is at a minimum or lacking entirely. Forindividuals and business owners alike, few areas provide greatermysteries and frustrations that those involving finance. As analternative commercial finance consultant, companies andindividuals may need your help to:

    plan a mortgage liquidation strategy that wasnecessary to effect the sale of a hard-to-sell home.

    provide financing strategies for an exceptionally largeand unforeseen manufacturing order from a new


    arrange for letters-of-credit and purchase orderfinance for a companys first Pacific Rimmanufacturing efforts.

    assist in liquidating a seller carry-back mortgage to

    help pay for pending medical bills.

    liquidate a structured settlement to generate cash forcareer re-training.

    provide accounts receivable financing to assist in a

    corporate restructuring.

    arrange for a lump sum payment on a gambling jack-pot to purchase a new home.

    arrange an inventory revolving line of credit for acompanys seasonal increases in production .

    liquidate a business note from the sale of a previousbusiness to purchase a new one.

    create a commercial financing growth plan for anewly formed small disadvantaged business


    source venture capital for the developer of a lifesaving medical process.

    This list represents only a small fraction of the fee-generating opportunities available to financial consultants.


    Accounts receivable

    financing and

    accounts factoring are

    considered the crown

    jewels of commercial

    finance tools due to

    their flexibility and

    availability to small,

    newly formed small

    business owners that

    do not have access to

    traditional loans.


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    INITIAL CHALLENGESAs a new consultant you will face many challenges as

    you begin your new business venture. As we mentionedpreviously, if the industry was easy to successfully enter, every-

    one would be doing it. Below are just a few of the obstacles thatyou will face as you begin operating as an alternative commercialfinance consultant:

    Setting up a productive office with the necessaryequipment for operation.

    Generating your first leads through direct marketingand other lead-generating methods.

    Creating a professional web site to assist in yourmarketing and prospecting campaigns.

    Acquiring significant amounts of product knowledgein areas of commercial and consumer finance that arelittle known to others.

    Providing for living expenses while you bring in yourfirst deals.

    Developing a state-of-the-art lead and prospectcomputer-based management system.

    Creating strategic alliances for lead referralthrough networking.

    INCOME POTENTIALWhile there will be many challenges for those that chose

    to enter the industry, the reason that many attempt to do so is theattractiveness of the industry and its considerable incomepotential. Consider this:

    The average stockbroker must manage between $100and $150 million dollars of investor money (and manage it well) toearn a six-figure income. The average commercial finance

    consultant must place only $5 million dollars of client accountsreceivable with a commercial factor to earn the same amount ofcommission income or greater.

    And thats not all. In addition to the income potentialfrom commission products, consultants often have opportunitiesto invest their own funds in exceptionally high yieldinginvestment opportunities.


    To succeed, you will

    need to acquire

    significant amounts of

    product knowledge in

    areas of commercial

    and consumer finance.


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    OPPORTUNITIES for INVESTMENTWithout question, alternative commercial finance

    consulting offers opportunities that few other vocations canmatch. Income potential from commissions and consulting fees

    in excess of $100,000 annually is not out of the norm.Additionally, however, the industry can often provide its savvymembers with exciting opportunities for personal investment andprofit. These include unique real estate purchase opportunities,the availability of high yield mortgage notes, commercial invoicepurchases with yields in excess of 50%, and fast turnaroundpayment guarantee purchase order transactions. Among others,typical consultant investment opportunities include:

    Factoring.the ability to purchase invoices fromsmall business owners that are payable by their

    customers in 30 /60/ or 90 days but where

    immediate capital is required for payroll orother urgent needs. Yields often exceed 50%.

    Seller Carry-Back Mortgage Notes.usuallyoffering double digit yields and collateralized by

    improved real estate or raw land, these longer-term

    investments can be used as a key component to any

    investment portfolio where moderate risk with

    commensurately high returns are appropriate.

    Purchase Order Finance.(usually performedin conjunction with factoring) by advancing funds

    for verifiable purchase orders when vendors areshort of cash and cant take advantage of

    unforeseen sales opportunities. Yields can often

    exceed 50% for those armed with the knowledge

    to structure these common transactions.

    Letter of Credit, you dont haveto be a bank to provide a letter of credit to a

    business owner. Private letter of credit transactions

    are becoming common in small business circles and

    can provide significant yield enhancements to stock,

    bond, and other more traditional investment


    The knowledge necessary to structure and benefit fromthese and other unique investment opportunities is a bi-product ofconsulting in alternative commercial finance. Many enter theindustry for these investment opportunities alone.


    Yields in excess of

    50% for those armed

    with the knowledge to

    structure these

    common transactions.


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    PERSONAL QUALIFICATIONSBecause many individuals make the decision to enter the

    industry as the result of seeing a middle-of-the-night infomercialfrom a home business opportunity guru or after attending a free

    seminar, the failure rate for those that subsequently sample thebusiness is extremely high. We would guess in the 90%+ range.And, for the third time, we will tell you, if it were easy, everyonewould be doing it. It takes a specialperson with unique entrepre-neurial characteristics, commitment, and qualifications to succeedas a consultant. It takes a very special person equipped with anexceptionally unique compliment of skills, marketing savvy, andproduct knowledge to succeed as an alternative commercialfinance consultant. Before you leap into the industry, considerthe following:

    A great deal of your time will be spent networking.You should be comfortable around others and havethe time and financial capability to join multipleorganizations that include bankers, lawyers, realestate professionals and others that can referbusiness to you.

    It often takes many months to begin generating anysignificant amounts of income. Before entering theindustry, make sure your finances are in order. Besure that you have the ability to stick with it for atleast 6 months with little or no significant income.

    Even if you work from home, you will have office

    expenses. Including a computer, you should allocatea minimum of $3,000 for office setup essentialsduring the startup period.

    While you must obtain considerable amounts ofproduct knowledge, your livelihood will depend onyour marketing and prospecting capabilities. You willneed a reasonable marketing budget of $500 to$1,000 each month just for the essentials.

    One of the best methods of developing newaccounts is through workshops and seminars. Youshould feel comfortable speaking in front of groups of

    twenty or more people.

    This is a very prestigious business and you will needto look and dress the part. This includes suits andties for men, business suits for women and a latemodel, dependable vehicle.


    It often takes months

    to begin generating

    significant amounts of

    income. Make sure

    that you have an

    adequate amount of

    startup capital to

    carry you through thefirst lean months.


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    INGREDIENTS FOR SUCCESSOne major difference between a corporate 9-5 job and a

    career in consulting is that the business is YOU. Your success orfailure, your self esteem, your personal self worth and your level

    of income all depend on your performance. If you fail, it is all onyour shoulders. In the end, there is no one to blame but YOU.Therefore, before embarking on this career path, inventory yourpersonal assets to better determine your chances at success.

    Do you have the capital required to start a newbusiness and to provide for you and your family for6-12 months during the start-up phase?

    Do you have the drive and mental toughness that itrequires to be independent and fully on your own?

    Do you have the computer skills necessary to runthe business, keep records, track marketingcampaigns and organize leads and prospects?

    Do you have the networking skills and timenecessary to join fraternal, business, and tradeorganizations and develop referral relationships?

    Do you have a good command of the Englishlanguage with diction that is easily understood byall?

    Do you have good telephone skills that can assist

    you in your marketing efforts?

    Do you enjoy being the center of attention and aproblem solver?

    Do you capabilities to operate your business duringnormal 9-5 operating hours?

    Do you understand direct marketing and have youany experience in telephone prospecting and coldcall canvassing?

    Do you have clear cut financial and career goals?

    Do you have a space available to create a homeoffice work area or the excess capital forcommercial executive office space?


    Do you have a good

    command of the

    English language with

    diction that is easily

    understood by all?


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    Purchase order finance invoice

    Business notes factoring

    Structured settlements deed

    Asset-based lending hard money

    Accounts receivable forfaiting

    Lottery gaming annuities

    Purchase order finance invoice

    Business notes factoring

    Structured settlements deed

    Asset-based lending hard money

    Accounts receivable forfaiting

    Lottery gaming annuities

    Factoring purchase orders

    ne of the first tasks you must perform

    when entering the alternative

    commercial finance industry is to

    become completely familiar with a vast

    array of financial products that may be

    completely unknown to you. Many will

    have terminologies or jargon that you

    must become familiar with so that you arecomfortable when speaking with funding

    sources and their representatives.


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    f you are still reading this guide, that means thatyou believe you have the necessary qualities topursue a career as a consultant / broker inalternative commercial finance and are ready to

    explore the types of products and services that you can offer.

    We will briefly describe a few of the major products andservice areas in this chapter. Keep in mind that new areasemerge literally daily. There are also many tangentsavailable to specialize in as you become proficient in manyforms of financing. After providing factoring and purchaseorder finance for several years to manufacturing clients, forexample, one consultant found that she could additional actas a representative between product manufacturers wantingto contract manufacture with Chinese factories, and thefactory representatives that arranged such manufacturingfacilities. This took no special talent, no additional knowl-edge other than simply knowing where to go to get the job

    done. (Huge consulting fees involved by the way.)

    A key ingredient to this unique consulting businessis, in fact, just that..knowing where to go to get the jobdone. It is important, for example, that you know thedifference between a purchase order and an invoice so thatyou can contact the appropriate capital source when you arearranging such financing. When dealing in mortgages, youmust be aware of the terms of a mortgage..first mortgage,second mortgage, balloon, etc. so you can present paperfor sale and structure transactions professionally andconfidently.

    How you obtain the necessary product knowledge isanother subject. With the continued growth of the internet,virtually everything is available on one web site or another.The key is to know what you are looking for. The topicspresented on the following pages are brief introductions tosometimes very complex transactions. To be takingseriously by those that will refer business to you, (bankloan officers, attorneys, CPAs, and other professionals) youmust know your business inside out. Professionals such asthe above will not risk their reputations on someone that isof questionable authority. As you first build your business,

    you will need to seek expert training and consultation toavoid making critical mistakes that are sometimesimpossible to correct. As it is often said, you have only oneopportunity to make a first impression. Since a great dealof your business will be the result of building referralrelationships through networking, make sure yourcredentials and base of knowledge are in place and valid.



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    COMMERCIAL FACTORINGFor brokers and consultants, commercial factoring often

    forms the key component of their product mix. This is because ofits broad appeal as a financial problem solver to small and mid-

    size business owners.

    Factoring is defined as the process of purchasing invoicesfrom a seller (known as the client) by a buyer (known as thefactor). These invoices are purchased at a discount from theirface value with an initial advance (usually 75-80 percent) andupon the ultimate payment of the invoice by the clientscustomer, the balance of the value not initially advanced is thenrebated to the client minus the factors fee.

    Factoring is one of the most powerful financial toolsavailable to small business. While a financial accommodation, its

    real value is as a growth engine to companies unable to arrangefor more typical business loans from commercial banks. Thosebusinesses that employ factoring are able to accept orders forgoods or services from larger customers that demand 40, 50 even60 or 90 day terms of payment upon invoices. With the moneyfrom advances upon purchased invoices, clients that utilizefactoring can provide for weekly payroll, pay their supplierstimely, make tax payments, or satisfy a host of other financialneeds. They are not credit bound while waiting for slowpaying customers to remit payment. Because of this flexibility,they can attract very large commercial clients and grow theirbusinesses quickly and efficiently.

    COMMISSIONSAt any given time there are about 1,000 commercial

    factors operating domestically. Virtually all factors enjoy work-ing with independent brokers that source business for them.One of the strongest features of factoring from the consultantsstandpoint is the standard commission fee structure paid forreferrals.

    Most commonly, factors pay 10% of their earned fees tothe broker / consultant that sourced the client. This fee is paidmonthly and for the life of the account. Very typically, businessowners that choose factoring to finance the growth of theircompany do so for a period of many years. This means thebroker that generated the client can expect a monthly check for24, 36, 48 months or even longer. By referring only 4-5 milliondollars in client invoices to factors, a broker will typically earn inexcess of $100,000 per year.


    By referring only 4-5

    million dollars in

    client invoices to

    factors, a broker will

    typically earn in

    excess of $100,000

    per year.


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    ASSET-BASED LENDINGAs opposed to factoring, asset-based lending is provided

    as a loan to clients against accounts receivable rather than theiractual purchase. Additionally, asset-based loans provide

    financing for inventory and work in process. Asset-based lendingimplies a loan that is simply made which is backed by an asset ofa business such as equipment (as opposed to a non-collateralizedsignature loan). This, however, is not the case. Asset-basedloans are those loans made to a business which are collateralizedonly by accounts receivable and inventories (to include work inprocess).

    As opposed to factoring arrangements which can begranted to small businesses with as little as $10,000 to $20,000 inaccounts receivable, asset-based credit arrangements usuallyinvolve much greater amounts with $1,000,000 or more being

    more the norm. Because asset-based lenders do not actuallypurchase the accounts like a factor, the credit of the borrowermust be stellar. Asset-based loans, therefore, are only granted tothose companies with profitable operational histories andimpeccable credit.

    Asset-based loans are most often found in the form ofrevolving lines of credit or as it is commonly termed, arevolver. They will include funds for accounts finance, thepurchase of inventory, letter of credit transactions, etc. Fundswill be withdrawn from the credit line as needed and thenre-deposited as accounts are paid and inventories depleted.

    The borrower generally pays interest only on the funds withdrawnfor use with a small fee paid overall for the credit facilitysavailability.

    COMMISSIONSAs opposed to the recurring and trailing monthly

    commissions paid for factoring and purchase order transactions,asset-based lenders will typically pay a one time fee for clientreferral. This generally ranges form 1/4% of the loan amount toperhaps 1/2% for very small loans (under $500,000). Still, evenat such low fee rates, a $5,000,000 credit facility granted to aclient can often amount to a $25,000 to $35,000 fee to thesourcing agent.

    Typically, alternative commercial finance consultantstend to focus their marketing efforts more in the area of factoring,purchase order finance and export-import trade finance where thecommission streams are for longer periods of time. Theoccasional asset-based loan is look upon as a bonus whendiscovered.


    Asset-based loans are

    most often found in the

    form of revolving lines

    of credit or as it is

    commonly termed a



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    DISCOUNT MORTGAGE NOTESDiscount mortgage notes are a commonly sought after

    product area by many consultants and can actually be looked at asa stand-alone business. Most often discount mortgages are

    referred to owner financed mortgages or seller carry-backmortgages. They are simply the paper result of a property ownerdeciding to finance a piece of real estate personally rather thanrequiring the buyer to seek funding from a more traditionalsource such as a bank or commercial real estate lender.

    Owner financed mortgage notes often come about when apiece of property is difficult to sell or when the buyer cannotqualify for financing. It may even be because the land is ruraland out of the geographic preference area of lenders.

    There are literally billions of dollars of owner financed

    mortgage notes in existence at any given point in time. Asinterest rates rise and banks tighten credit policies, owner carry-back mortgages begins to play a larger part in creative real estatefinancing. In periods of declining real estate values or burstingbubbles, owners use it as a sweetener to help sell theirproperties faster and at higher prices.

    Many home sellers keep these private mortgage notes dueto the exceptional income that they provide. Others, however,find they must sell their mortgage notes for a variety of reasons.These include:

    Purchasing another new home.

    Paying for the education of children.

    Unforeseen medical needs.

    Other investment opportunities.

    Divorce or dissolution of partnerships.

    Taking exotic trips or vacations.

    Consolidation credit cards or other debts.

    COMMISSIONSConsultant fees in the area of mortgage notes are usually

    charged as a discount to the wholesale price offered for the noteby a note buyer. For example, after submitting a $200,000 notefor purchase to a buyer, you might receive a wholesale quote of90 cents on the dollar or $180,000. As a broker, you simply sub-tract your fee of say, $10,000 from the wholesale bid and give theseller a retail bid of $170,000. If accepted, the buyer providesall of the closing documents.


    There are literally

    billions of dollars of

    owner financed

    mortgage notes in

    existence at any given

    point in time.


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    BUSINESS NOTESSeller Financed Business Notes are very similar to Owner

    Financed Mortgage Notes except that the note is the result of abusiness owner selling his/her business rather than a homeowner

    selling a home. The creation of a business note is exceptionallycommon when selling a business due to the fact that many bankswill only lend on hard assets such as real estate and buyers ofbusinesses find it difficult to finance the intangible assets of acompany.

    According to the U.S. Small Business Administration(SBA), there are approximately 23 million small businesses inAmerica at any point in time. Statistically, about 10% of thesebusinesses are sold each year and a majority of these sales includesome type of private business note to complete the transaction.Given these figures, there are over 2 million new prospective

    clients each year holding billions of dollars of new private paper.

    As a general rule, the previous owner of the businessholding the note does not realize that there is a ready marketavailable for liquidation. While not as expansive as the networkof residential note buyers, business note buyers do exist and theyare especially attracted to promissory notes which have acommercial real estate component incorporated.

    The purchase of business notes is far riskier than mostother areas of the paper industry. This is primarily due to thehigh number of small businesses that fail each year as a result of

    poor management. While a previous owner of a restaurant, forexample, may have been very successful, a new owner might failmiserably due to just small changes in menu items. From thenote buyers standpoint, these are risks which are hard to quantifyand therefore bids on private business notes that do not have areal estate component carry very steep discounts.

    COMMISSIONSCommissions generated on Seller Financed Business

    Notes are generally calculated and created the same way asOwner Financed Mortgage Notes..that is, upon receiving awholesale bid for the note, it is simply discounted further torepresent the commission that the consultant wishes to earn.Due to the greater difficulty involved in sourcing a buyer,however, many consultants will charge motivated sellers aconsulting fee upfront for their efforts. This is usually anhourly rate (ex. $50 per hour) for a guaranteed 10 or 20 hours oftime spent in attempting to source the deal.



    The purchase of a

    business note is far

    riskier than most other

    areas of the paper

    industry. This is

    primarily due to the

    high number of small

    businesses that fail

    each year as a

    result of being very

    poorly managed.


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    OTHER PAPER, PRODUCTS & SERVICESIn addition to those previously mentioned, there are

    dozens of other areas that provide significant opportunities forinvestment and commission income in the paper industry. A few

    of the more important include:

    Private Mobile Home Paper.

    Export-Import Trade Finance.

    Gaming and Lottery Paper.

    Consumer Contract Paper

    Forfaiting Transactions.

    Tax Certificates.

    Letters-of-Credit Sourcing.

    Recreational Vehicle Notes.

    Funeral Insurance Policy Assignments.Traditional Annuities.

    Pre-Death Insurance Settlements.

    Automobile Paper.

    Consumer & Commercial Judgments.

    Royalty Payment Advances.

    Inheritance / Trust Advances.

    Real Estate Sales Commission Advances.

    Medical Receivables Purchases.

    Delinquent Consumer Debt.

    As it is readily apparent, the number of opportunities togenerate commission / fee business and for personal investmentabound in the paper industry for those individuals that are awareof the possibilities and range of products. More importantly, newopportunities present themselves daily. For consultants, it isimportant to stay connected and to constantly add new arrowsto your quiver of products as new commission generating cashflow income streams are discovered.

    In addition to the host of commission generatingproducts available to represent, many consultants are focusingon providing fee-based consulting services. Conferencing withsmall business owners in their start-up phase regarding the typesof financing available to that business can be of great value tocash-strapped owners. Such consulting services can assist newentities to grow exponentially in their early years. Fees for suchservices can easily exceed $50 per hour and for the experienced,over $125.



    As it is readily

    Apparent, the number

    of opportunities for

    investment abound in

    the paper industry for

    those individuals that

    are aware of the

    possibilities and range

    of products. More

    importantly, new

    opportunities present

    themselves daily.

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    WHERE ARE THE BEST OPPORTUNITIES?With such an array of products available to represent, it is

    easy to understand why many commercial finance consultantslose focus when first beginning to operate. While there are many

    opportunities in all areas, several offer new consultants an easierpath to success simply due to the demand for the service and theease in which consultants can recognize prospective clientsduring their marketing efforts. These include:

    Factoring.with no formal licensing required, newconsultants can be successfully marketing forprospects almost immediately. Consultants thatfocus in this unique area of commercial finance findtheir services greatly in demand and quickly learnhow to recognize businesses and industries where

    factoring provides the most accessible solution toproblems of cash flow. Additionally, with its uniquetrailing commission structure, factoring is often thecore product for both new and established financialconsultants.

    Purchase Order Finance.asmanufacturerscontinue to move offshore there is a growing needfor domestic purchase order finance. And, becausepurchase order financing arrangements often requirefactoring as a component, marketing to small manu-facturers requiring this unique form of business

    finance can be doubly rewarding.

    Real Estate Commission Advances...a new and fastgrowing area in alternative commercial finance,advancing on earned commissions to real estateagents and brokers has become even more rewardingas real estate commissions and sales have spiked.

    Discount Notes and Mortgages.a tried and truearea of alternative finance that forms the startingpoint for many new consultants, providing a source ofliquidation for privately held mortgage notes has been

    in demand for over twenty years. Though many statesnow require a mortgage brokers license for this areaof practice, seeking out owner financed discountmortgage notes can be a core product area for thosewith an attraction to real estate investment orbrokering.



    A new and fast

    growing area in alter-

    native commercial

    finance, advancing on

    earned commissions to

    real estate agents and

    brokers has become

    even more rewarding

    as real estate sales andcommissions have

    grown dramatically.

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    HOME VS. commercial space


    OFFICE SPACE & design FAX





    ne of the more attractive attributes ofthe commercial finance consultingbusiness is the ability to run yourday-to-day operations from the

    convenience of a home-based office.Even those that chose to operate from amore traditional commercial office

    environment find that inexpensiveexecutive suites which offer cooperativesupport services such as conference roomsand answering services provide everythingthat is required to get the job done right.


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    etting up your office or workspace is an important firststep in beginning your career as a consultant inalternative commercial finance. This industry is oftentouted in late night infomercials as one where you can

    successfully work from home and on a part-time basis. The

    good news is that those representations are probably quite true,but, with a few caveats.

    Like many consulting businesses, the actual equipmentand support items you will need to be in business are modestand will include many items that you probably already own.These will include a computer, fax machine, telephone system,and a reasonable office-style work area including file cabinetsand storage. The caveats are these. You will need a work areaat home that is free from distractions such as children and loudnoises. If you are attempting to operate part-time, some of thattime will need to be during normal business hours of 9-5. In

    our estimation, the following is the type of setup you will needto really succeed.

    HOME OFFICEYou will need a room of reasonable size (10x10) that is

    office only and free from distractions such as television setsand children at play. Try to choose a room with natural lightand some view. Avoid dark prison-like atmospheres such asbasements which are definitely not conducive to productivity.Make certain that the office has a door that can be closed.

    ComputerA great deal of your marketing efforts will begin with

    direct marketing or database marketing. You must have acomputer, monitor, and printer of recent vintage to manageleads and prospects. If you do not have a system currently,earmark approximately $1,000-$1,200 for a suitable system.

    SoftwareYou will need office support software for your

    computer if it does not already have it. We would recommendMicrosoft Office which includes both Word, Publisher andPowerPoint programs. You will use all three in your marketingefforts and they will save you thousands of dollars over time.

    The most important software item you will need is adatabase management system. FactorMax BusinessDevelopment Systems are specifically designed for

    consultants in the alternative commercial finance arena.



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    PrinterYou will be doing a great deal printing in your direct mail

    marketing efforts. You will find a quality printer to be essential.Good business inkjets are fine and generally under the $300 markin cost. Laserjets have declined markedly in price and increasedin reliability over the years and can be purchased at very afford-able levels. The most important thing to keep in mind is not toskimp in this important area..

    Telephone SystemsOne of the more important components of your office

    will be your telephone and message handling system. A typicaltelephone answering system will not due and will only serve toassist you in losing valuable leads and prospects. To succeed youwill need a two line phone system with call waiting. You willalso need a cellular phone that can accept calls forwarded to itfrom your base system at home. Additionally, we stronglyrecommend an answering service that is very professional innature.

    Facsimile MachinesYou will require a plain paper fax that has the ability to

    scan documents and also to make document copies. These 3-1machines are very inexpensive and can also serve as a temporaryback-printer in the event that you standard printer fails.

    Desk and Work AreasTypical home office desks are beautiful and expensive.

    We recommend modular office systems that are available from

    most office supplies stores such as Office Max, Office Depot, orStaples, however. Even though this business is one which isprimarily based on networking and direct marketing, you willfind you need more work space than you think. Make sure thatyou have enough filing space to maintain broker packages youhave requested from funding sources, and the hundreds of supportdocuments, mailers, and brochures you will need during yourday-to-day marketing efforts.

    LightingTry to have a source of natural daylight in your work area

    from windows. In addition, you will need fluorescent style lights

    over your work area.

    StorageIn addition to filing cabinets, you will need a closet area

    for storing office supplies such as printer paper, envelopes, letter-head, file folders, etc.


    One of the most

    important components

    of your office will be

    your telephone and

    message handling

    system. A typical

    answering system will

    not due and will only

    serve to assist you in

    losing valuable leads

    and prospects.


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    COMMERCIAL OFFICE SPACEAs a consultant, you may elect to lease traditional

    commercial space to house your business. This is most often inthe form of an executive suite.

    Executive suites are cooperative quarters whereoccupants have a small, stand alone office but share somecommon areas and services such as a conference room, receptionarea, and answering service. They are a favorite for stockbrokersand insurance agents that have independent practices.

    In addition to executive suites, many alternativecommercial finance consultants will seek lodging in communitybanks. When banks build their buildings, they will often over-build to allow for expansion in the future. Until the futurecomes, they have space available to lease.

    The benefits of leasing a small amount of office spacefrom a bank are obvious. As banks turn down loan applicants,many of those business owners can be directed to your office forhelp in securing some form of alternative financing.

    In addition to referrals, becoming affiliated with a banklends a great deal of credibility to your business model. Dontexpect the bank to wholeheartedly embrace your businessimmediately, however. You will need to establish relationshipswithin the bank and develop some trust. After time, however,leasing space from a bank can be one of the best marketing

    moves you can make as a new consultant.

    OFFICE EQUIPMENTYour office equipment required for setting up shop in

    commercial space is identical to that needed for your home officeexcept that looks become even more critical. Most executivestyle suites have large windows or floor-to-ceiling glass areas sothey are not confining. The view out is great but this feature alsoallows everyone to see in.

    Spend some time on office layout and furniture design.Make sure that those that look in dont see a myriad of wires andunsightly storage. A great deal of office furniture sold indiscount stores is junk. You will be surprised to see how quicklylegs fall off and drawers quit opening. It is best to spend a fewmore dollars initially to purchase furniture of commercial qualitythat will stand up to heavy use. You may also consider usedfurniture from liquidators if it is of very good quality.


    Spend some time onoffice layout and

    furniture design.

    Make sure that those

    that look in dont see a

    myriad of wires and

    unsightly storage.


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    OTHER AREAS OF IMPORTANCEIn addition to the physical and equipment aspects of

    setting up your office, you will need additional items before youcan actually say Im in business.

    Your Business NameThe name you select for your business is of paramount

    importance. When marketing, it should convey to leads andprospects the nature of your business. Too many of those firstentering the industry are not aware of the importance of yourname.

    Letterhead, Envelopes and Business CardsYou will need the basics here including two or three sizes

    of envelopes, professionally designed and printed business cardsand a quality letterhead.

    Brochures, Flyers, and Sales LiteratureAs you determine your areas of focus, (factoring,

    discount notes & mortgages, export-import trade finance, etc),you will need to create sales support documents such asbrochures, mailing stuffers, and other marketing pieces. This isno area to skimp. Well designed brochures and flyers willconvey quality and professionalism to your prospects. Ifnecessary, hire a specialist to assist in creating your importantmarketing pieces and sales literature.


    Websites have become so important to the overallmarketing efforts of any sales operation that its hard to believethat we ever did it without them. For those operating asconsultants in commercial finance, a professionally designedwebsite is a key component to virtually all direct marketingcampaigns.

    For consultants, websites act as a virtual billboard. Theyare a place where prospective clients can go at their leisure to getmore information about your services. Most importantly, yourwebsite is where prospects will go to request additionalinformation about your capabilities and respond to offers that

    are made in your mailings or telephone calls.

    Your website should contain at least one page of informa-tion on each service or product you offer. Additionally, it shouldcontain a form where leads and prospects can order additionalinformation or request that you contact them.


    Websites have become

    so important to the

    overall marketing

    efforts of any sales

    operation that its hardto believe we ever did

    without them.


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    List building cold calling

    Direct mail telephone marketing

    Networking canvassing

    Database management system

    Public speaking free publicity

    Relationship building

    List building cold calling

    Direct mail telephone marketing

    Networking canvassing

    Database management system

    Public speaking free publicity

    Relationship building

    Product shopping trade shows

    hile you will need to acquire a greatdeal of product knowledge to succeedin the industry, your marketing skills

    will ultimately determine your degreeof success as a financial consultant. If youdo not already possess them, you will needto quickly develop marketing skills inmany areas including direct marketing,networking, and relationship building.Most importantly, you will quickly find that

    the telephone is the key tool in yourmarketing arsenal.


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    arketing for leads and prospecting those leads for

    clients are the most important aspects of actuallydeveloping your consulting business. In fact, yoursuccess or failure will most likely be determined by

    how well you generate leads and prospect rather than youractual product knowledge. Without question, a well roundedknowledge of the industry is essential. It is your marketingskills that will bring home the bacon, however.

    For most consultants operating in alternativecommercial finance, marketing efforts will be focusedheavily in the areas of direct marketing, networking, andrelationship building. All three are highly important and thesooner you develop your skills in these areas, the faster you willbegin producing commission dollars.

    DIRECT MARKETINGDirect marketing is a systemic approach to businessgeneration which is designed to elicit a response from asuspect or prospect in order to develop a client relationship.As opposed to advertising, which simply builds brand aware-ness, direct marketing focuses on developing business now!

    As a consultant in commercial finance, you willutilize a host of direct marketing tools including direct mail,canvassing, telephone marketing, web-based internet marketing,and broadcast marketing.

    NETWORKINGNetworking is simply a matter of meeting people that

    can refer business your way. Research shows that manysuccessful home-based businesses, succeed primarily onnetworking in their early stages. Many opportunities forbusiness development will result from being in the right placeat the right time. Those that employ networking as a primarymarketing tool will join many formal or informal networkingorganizations such as Chambers of Commerce, fraternalclubs (Rotary, Kiwanis, etc.) or social organizations inwhich they have a special interest.

    Networking is often called word-of-mouthmarketing because it is just that. Informal networking isdone just about everywhere including sporting events, afterhours social gatherings, religious functions, and so forth. It issimply a matter of identifying and frequenting those places andevents where prospective clients or referral sources patronize.



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    RELATIONSHIP BUILDINGRelationship building refers to the time you spend

    building meaningful relationships with prospective clients.Unlike networking which refers to word-of-mouth marketing to

    those that can refer business to you, relationship building is usedto develop business relationships with those individuals that youare actively pursuing as a client.

    Relationship building focuses on establishing a businesstrust that will lead to a client relationship at some time in thefuture. It basically says OK, you know what my services are andwhen you need me, Ill be here. It is an important marketingmethodology used by those in business for the long haul. Itwill provide a steady stream of business each year if properlydeveloped.

    LIST BUILDINGAs a financial consultant, you must develop good lists for

    lead generation and prospecting. The effectiveness of your listbuilding skills will very much determine how rapidly you succeedin the industry. Building poor lists of unqualified prospects is atremendous time waster and will lead to frustration down the line.Conversely, spending the time necessary to build quality lists ofqualified prospects will insure the rapid growth of your businessand, of course, your income. As you begin to grow your financialconsulting business, you will quickly learn the value of being ableto recognize those businesses and/or individuals that can qualifyfor and that need your services and expertise.

    DATABASE MANAGEMENTAs you begin to hone your marketing skills, it will also

    quickly become evident that a good database management systemis absolutely essential. Categorizing members of prospecting listsand recording pertinent information about them for networkingand relationship building is extremely important. Because of thephysical numbers of leads and prospects that you will be dealingwith, sound database management becomes a necessity.

    By definition, all direct marketing is database marketing.

    For those first beginning their career as a commercial financebroker, this includes the all important medium of direct mailmarketing. Managing productive direct mail campaigns can onlybe accomplished with a computer and a state-of-the-art databasemanagement system.

    As a commercial

    financial consultant,

    you must develop good

    lists for lead genera-

    tion and prospecting.

    The effectiveness of

    your list building skills

    will very muchdetermine how rapidly

    you succeed in the




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    PROSPECTINGProspecting is often defined as seeking that which is of

    value. For financial consultants and brokers operating in thebusiness development area of commercial finance, prospecting is

    often better defined as discarding that which is off little or novalue.

    The skills you develop at list building will provide yourbusiness with the raw material for success. Prospecting that rawmaterial the proper way is what will generate your income ofcommission dollars. Modern practitioners of guerrilla market-ing know the value of developing keen prospecting skills anddiscover methods of getting business to come to them.

    USING THE INTERNETThe wealth of information available on the internet has

    dramatically changed how we market and taken a great deal ofthe grunt work out of it. The time necessary to build goodprospecting lists, for example, has been reduced by 90% due tothe vast amount of quality information available on the Web.Successful consultants learn quickly the value of surfing forprospects and leads and will spend a good deal of after hours timeusing the information easily accessed on the internet for buildingquality prospect lists.

    In addition to being an incredible source of raw namesfor your compiled lists of leads and prospects, the internet will

    also provide you will valuable information regarding networkingopportunities such as trades shows and expositions, clubs andfraternal organizations to join, business support groups, trademagazines and publications for advertising, etc.

    YOUR COMPANY WEB SITEAs mentioned in the previous chapter, you simply cannot

    market in todays world effectively without a company web site,period. A professionally designed web site provides as muchmarketing support as room full of assistants.

    In the field of commercial finance consulting, your

    company web site will act as a virtual billboard of informationthat prospective clients can access at any time of the day. It willsupport all of your marketing efforts by giving those you meetquick access to more information about your products andservices. Your web site must have a form area where prospectscan request additional information or subscribe to your offers.


    In todays businessarena, you simply

    cannot market

    effectively without a

    company web site,

    period. A profession-

    ally designed web site

    provides as much

    marketing support as a

    room full of assistants.


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    HOLDING WORKSHOPS & SEMINARSHolding promotional workshops and seminars is one of

    the surest methods of opening new accounts and generating new

    business. It is also one of the more difficult marketing methodsfor those that have no experience speaking in front of smallcrowds. This forum is well worth mastering, however. Thosethat use it find it almost impossible not to open one or two newaccounts from each lecture.

    Workshops and seminars can be given early in themorning as breakfast meetings, at noon as luncheon seminars, orafter hours as an informal workshop. They are generally held in arestaurants private meeting room for breakfast or luncheonseminars or at hotel / motel locations for after hours lectures.

    Employing seminars and workshops as a primary methodof marketing literally kills two birds with one stone. This isbecause the method that is most widely used to invite prospectiveclients to a seminar is direct mail followed up with a phone call.It is actually during the follow-up phone call that you will qualifythe prospect. The seminar then becomes a time to sell and closethe deal.

    OTHER MARKETING REQUIREMENTSNo matter which type of marketing method you choose,

    the effectiveness of that method will be proportional to theamount of personal contact or human factor you add with the

    prospect. It is often quoted that direct mail is 10 times moreeffective when followed up with a telephone call. In the businessfinance world, the multiple is more than 50 times more effective.For those that suffer from shyness or that are withdrawn incrowds, be advised that success in commercial finance consultingwill require that you exhibit an outgoing personality and aconfidence in groups and gatherings.

    Above and beyond all, the importance of the telephoneand your ability to use it effectively to prospect for and qualifyleads cannot be overemphasized. It is the most powerful tool inyour arsenal and must be used daily for prospecting and network-

    ing. Organizing your calls and tracking their effectiveness is thejob of your database management system. You must first, how-ever, provide the database management system with data. Thereis no faster and less expensive method for doing just that than thetelephone.


    For those that suffer

    from shyness or that

    are withdrawn in

    crowds, be advised thatsuccess in commercial

    finance consulting will

    require that you

    exhibit an outgoing



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    Schedule DATES commissions




    o assist you in entering the alternativecommercial finance industry quicklyand successfully, DataMax MarketingSystems, Inc. offers new consultants

    the necessary training, marketing expertise,and support to grow your business rapidlyand become a much sought after independ-ent financing consultant by small and mid-size cash-starved business owners. You can

    begin earning consulting & commissionrevenue today with the help of DataMaxMarketing Systems.


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    or those career oriented individuals seeking to enter thelucrative alternative commercial finance and cash flowindustry, DataMax Marketing Systems can provide

    you with the training, marketing expertise, and supportnecessary to make your entrance into this prestigious industry a

    quick and profitable one.

    TRAININGConsultant training through DataMax Marketing

    Systemsis provided in both conference and home studyformats.

    Two Day Conferences-Professional TrainingAn intensive two day instruction program for new

    entrants into the commercial finance community, our trainingconferences include an in-depth introduction to the various areas

    of alternative commercial finance including accounts factoring,purchase order finance, asset-based lending, equipment leasing,and import-export trade finance as well as the well knownalternative consumer finance areas of discount mortgage notes,structured settlements, and lump sum annuity distributions.

    This unique program is designed for novices as well asthose with some lending and/or consulting experience and willhelp build their careers with a solid knowledge and awareness ofthe principals of these important forms of alternative commercialfinance. For those seeking new vocations in this highly paid andlucrative profession, our two day Training Conferences

    provide a wealth of experience that money simply cant buy.

    Home Study-Take the Course at Your LeisureFor those unable to attend our conferences, aHome

    Study option is offered with our comprehensive training manualand publication Making Money in Paper which offerscomplete consultant training in the convenience of your ownhome. Additionally, should you chose to attend a trainingconference at a future date, you will receive a 50% discountfrom our normal registration fees.

    Get Our Texts and Publications in Advance

    For fully paid attendees, all texts and supportingpublications can be sent to you in advance of the conference for$25. This can give you a significant head start and allow youto set up your operations area and be in business in as short aperiod of time as possible.



    For those unable toattend our conferences,

    aHome Study option is

    offered with our

    comprehensive train-

    ing manual and

    publication Making

    Money in Paper

    which offers complete

    consultant training in

    the convenience of

    your own home.


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    PROFESSIONAL WEBSITESBecause of the necessity of a professionally designed

    website when marketing your services,DataMax Marketing

    Systemsoffers its associates and consultants standardizedwebsites in three distinct formats:

    Factoring and Commercial Finance WebsiteA 10-12 page commercial finance website which

    features information on factoring, purchase order finance,Import-export trade finance, and asset-based lending. TheseFactorMAXsupported sites also contain a featured industryfor targeted marketing campaigns and response form fields forprospect/lead requests for offers.

    Discount Note and Mortgages WebsiteA 7-8 page website which features important

    information about owner financed residential mortgage notes,business notes, structured settlements, gambling/lotteryliquidations and other consumer transactions. Sites include formfields for online quotations and responses to direct marketingoffers.

    Master Broker WebsiteFor those consultants practicing in both commercial and

    consumer transactions, These 15-16 page websites provide all ofthe web-based marketing support necessary for all of your directmarketing campaigns and networking opportunities. AllMasterBrokerwebsites are FactorMax supported.

    Hosting and Website SupportAllDataMaxwebsites are hosted locally on our own

    servers. This means that our support staff can work closely withyou as you launch your first direct mail or seminar campaignsand coordinate effective web support. This includes hyperlinkedsupport pages for targeted feature industries, time, date, andplace support for your local workshops and seminars, and fastturnaround and fulfillment for offer requests.

    HyperlinksFor consultants with existing commercial or business

    websites that want to hyperlink to those sites, DataMax willgladly provide multiple links for the convenience of your webvisitors.


    All DataMax websitesare hosted locally on

    our own servers. This

    means that our

    support staff can work

    closely with you as you

    launch your first direct

    mail or seminar

    campaigns and

    coordinate effectiveweb support.


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    QUESTIONS AND ANSWERSOften one of the most effective formats used to describe an opportunity is a structured

    question and answer guide. Below are questions we commonly encounter from new students andusers of our training programs and marketing systems.

    Q. What are the costs to register for your training conferences and where are they held?

    A. Our training conferences are typically $400.00 to $475.00 depending on the training facility thatwe utilize and the time of the year. We attempt to hold conferences in southern regions duringthe winter months and other regions during summer. Upcoming conference schedules areavailable at the company web site at

    Q. Why is your program so inexpensive and is it as good as others I have seen on television?

    A. Our training programs cost only a fraction of those offered by the so called seminar schools that

    are advertised on late night (or early morning) television infomercials and where students may payin excess of $10,000 for an introductory course to this lucrative industry. The primary reasonfor this is that through our strong commercial finance relationships,DataMax Marketing Systemsprovides significant amounts of referral business to factors, commercial lenders, equipment leasingcompanies and purchase order financing specialists. The vast majority of this business comesfrom our network of brokers nationwide so we have a vested interest in your success. Ourtraining programs, training personnel, and our marketing support products are literally light yearsahead of our competition.

    Q. Who makes a good commercial finance broker and realistically, what are my chances ofsuccess?

    A. What will ultimately determine your success is your marketing skills. Our training conferenceswill provide you with all of the information and product knowledge you will need to start yournew business. Your success, however, will depend on your marketing skills. The depth ofknowledge in this most important area varies so much from person to person that it is the reasonthat we developed the FactorMax Business Development System.

    Stockbrokers, financial planners, insurance agents, and other service providers make excellentcommercial finance consultants and will find the alternative commercial finance industry to bemuch more lucrative from the standpoints of income and accommodating from the standpoint ofease of operation. Those that have achieved some success in those industries do so because theyhave developed good telephone, direct marketing and networking skills. These are exactly the

    same tools needed to achieve success as a consultant in commercial finance.

    Roughly, only 2 in 10 applicants succeed in the securities or insurance industries as brokers andagents. Because the ill-prepared have already been weeded out, virtually all stockbrokers andinsurance agents will succeed in commercial finance and increase their incomes substantially.

    Those without those credentials should be governed by the 2 in 10 rule.


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    Q. If I am more apt to fail than succeed, why should I attempt this?

    A. We dont mean to imply that you are likely to fail. We simply think that you should be fullyaware of what this career choice entails. Most that fail after taking home study courses offered

    by late night infomercials do not have the sales skills to perform in this or many other careers thatinvolve marketing, prospecting and selling. We feel that too many home business opportunitymarketing programs simply make this career sound too easy. We would rather you be a littlebetter informed before you begin to spend your money. Realistically, because of the high incomepotential and other benefits, if everyone could do this, everyone would be doing it.

    Q. Can this business really be run from my home?

    A. Yes, it really can. We feel most will locate in an executive suite or commercial office space afterthey begin to generate income and achieve some initial level of success, however. Our advice isto start from home or align yourself with partners in commercial space to keep the expenses under

    control when you begin operations. Avoid signing office or equipment leases until you havebecome established and brought in your first deals and commissions.

    Q. Does DataMax Marketing Systems assist in packaging our deals?

    A. As a new entrant into the industry, you may elect to become an Associate ofDataMaxFinancial Services (DMS). As an Associate, we provide a great deal of mentoring and marketingassistance to help you along as you begin your new career. We also help you package your dealsand direct them to the appropriate funding source.

    Q. What does it cost to become an Associate?

    A. There are no actual costs to become an Associate with DFS. All Associates are required to utilizethe FactorMAX Business Development System, however. To keep your initial expenses to aminimum, we have a special financing arrangement for the system to Associates. While thecosts of becoming an Associate with DMS are nil, there are other requirements. Mostimportantly, we require you to produce business. We allow you 90 days to ramp up and you arementored for that 90 day period. After your ramp up period, you are required to produce aminimum of three deals each quarter (3 month period) to remain supported by DMS. A completeexplanation of the Associates Program is available for viewing at our company web site

    Q. Can I do this on a part-time basis?

    A. Part-time consultants face one serious obstacle in that they have little time for telephone follow-upduring normal business hours. To succeed, you must allocate some time during the week to makefollow-up calls, have someone else make those calls for you, or develop some very aggressivedirect marketing campaigns.


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    Q. Why is factoring so important to my success?

    A. We refer to factoring as the crown jewel of the industry for two reasons. First, it has a veryattractive commission payout which is trailing. Simply put, you will likely generate a commis-

    sion check from a client you refer each month for two, three, four years or even longer. Secondly,it is by far the easiest product to market with. While you may include discount mortgage notes,structured settlements and other areas of alternative finance in your service area, the commercialproducts of factoring, purchase order finance, and asset-based lending will provide 90% of yourincome in most cases.

    Q. What exactly is FactorMax?

    A. FactorMaxis a marketing system that we developed for the factoring industry. It is designedaround a systemic approach to marketing for commercial finance clients (factoring, purchase orderfinance, etc). It includes a training manual, operations manual, and the FactorMaxcontact

    management software. Unlike off-the-shelf contact managers, it is important to realize thatFactorMaxis much, much, more. The FactorMax Business Development System is the onlyproduct of its kind in the factoring and commercial finance industry.

    Q. Are there any licensing requirements for this type of occupation?

    A. In general, there are no licensing requirements to become a commercial finance consultant. A fewstates have adopted requirements for those that deal in discount notes and mortgages, howeverwhich require that the consultant obtain a mortgage brokers license and/or post a bond.

    Q. Will I have a great deal of competition as a commercial finance consultant?

    A. Generally, no. The professional side of this industry is not very well known and most of thosethat try to enter the industry after seeing a late night infomercial soon drop out do to lack ofproper training and support. You will have some competition from banks and other financecompanies but they are generally passive...that is as a client you must walk in the door andask for the service.

    Q. What type of computer and operating system will I need?

    A. Actually, you will probably find that you will need two..a desktop to be used in your office or

    home office and a laptop to be used from your car and on appointments.

    In addition to our twoday workshop weekends which train you in all aspects of commercial finance consulting, we alsoprovide a two day workshop on FactorMaxoperation and marketing strategies. You will need alaptop computer for that workshop. You must also have a Microsoft Windows 2000 or XPoperating system.