Transfac Referral Program

Transfac Referral Affiliates • Transfac History • What is Factoring • Transfac Focus • Products • Sales Process • Commission Structure – RA Agreement – Super Broker – Other ways to make money • Sales and Marketing – Support materials – Strategies for your business

Transcript of Transfac Referral Program

Transfac Referral Affiliates

• Transfac History• What is Factoring• Transfac Focus• Products• Sales Process• Commission Structure

– RA Agreement– Super Broker – Other ways to make money

• Sales and Marketing – Support materials – Strategies for your business

• Started by trucking companies in 1942

• Manage Accounts Receivable

• Have expanded to General Commercial

• Transfac is Experienced, Reliable and Responsive


• Example• Purchasing vs. Lending• FAQs

What is Factoring

Day 1Invoice Submitted: $1000 (product delivered)Advance (~85%): $850 (normally next day)

Day 46Check received: $1000Advance repaid: ($850)Transfac Fee(~3%): ($30)Rebate: $120Total Proceeds: $970

Funding Example:

• Billing Service

• Collection service

• Professional Credit Management

• Cash Application

Additional Benefits

• Volume: $50k/month to $5 million/month

• Industries:– Excluded: Medical and Construction– Watched: Retail, Software, Produce– Preferred: Transportation,

manufacturing, service, distribution, staffing

Transfac Focus

• Receivable Management Service (RMS) – traditional

• Receivable Funding Line (RFL) – hybrid

• Purchase Order Funding• Inventory Finance• Insurance• Transportation: Fuel card,

equipment funding, etc.


• Complete Application and AR Aging• Present Proposal to customer within 24

hours• Customer signs proposal and check for

due diligence• Complete package to Transfac• Contract to customer within 72 hours• Customer returns contract with invoices• Funded – Welcome to Transfac!

Setting Up a Customer


Prospect (1) Leads generated Sales/Broker

  (2) Applications generated Sales/Broker

Applicant (3) Application received. (at least app and AR aging/debtor info) Sales/Broker

 (4) Application & all supporting documents scanned and attached to ACT/shared drive Sales

  (5) Initial sales write-up including proposed pricing Sales/Broker

  (6) D&B for UCC/tax liens and check of debtor credits Credit

  (7) Approval of LOI/Proposal Sales and Credit

LOI Sent (8) LOI sent to prospect and RA informed Sales

  (9) LOI negotiations with prospect Sales

Signed LOI(10) Signed LOI, due diligence, and supporting documents returned by prospect to sales Prospect


(11) Create underwriting file, file UCC, check corp status, review client credit report, review A/R aging, review debtors and their credit, dilution analysis, concentration issues, create account worksheet, modify sales write-up. Legal/Credit

  (12) Sales hands prospect off to Underwriting for analysis  

 (13) If information gives bad result, or information insufficient, return to person who generated application to get more information or to turn down. Sales

  (14) Create and review PSA Legal

PSA Sent (15) PSA and cover letter sent to prospect Sales

  (16) PSA negotiationSales Mgr/Legal/Credit

Signed PSA (17) PSA returned with all outstanding docs and INVOICES Prospect

  (18) PSA and documents reviewed and scanned Legal

  (19) Invoices verified Operations

  (20) Schedule on-site audit if needed. Credit

Audit Summary (21) Audit Summary complete, signed by Credit Committee Credit

Fund (22) FUND  

• Standard:– 10% of gross revenue– Do not take out cost of funds

• One Time

• Super Broker

Commission and Incentives

• Example: $200,000 deal – Transfac is purchasing $200k/month

from your client at a 3% rate– Transfac will earn approximately

$6,000/month ($200k x 3%)

• Broker will earn $600/month – ($6,000 x 10%) or – $7,200 annually


• Application Fee

• Origination Fee

• Referral Fees– Other lenders– Transfac Affiliates

Other Revenue Sources

• Handouts and Articles• Where to look for business:

– Friends, relatives, acquaintances– Referral sources

• Finance people, bankers, CPAs, attorneys, etc.• Other sales people selling product to businesses

– Direct• Telephone• Email, fax or web• Knock on doors

– Pick particular industries or niches


Eric Myers – Director of Business Development800.458.6056 ext [email protected]

Tim Valdez – Executive Director800.458.6056 ext [email protected]