NOTES

Purch

ng
i
r
o
t
c
Fa

ase Or
ders

LOAN BROKERING

Structured Settlements

Consulting For Profit

in the

Cash flow Industry

i

CONTENTS
Introduction
Chapter One
Career Profile
Life as a Commercial Finance Consultant. 3
Services in Demand.. 4
Challenges / Income...5
Investment Opportunities... 6
Personal Qualifications.. 7
Ingredients for Success.. 8

Chapter Two
Description of Products and Services
Getting the Job Done..11
Commercial Factoring... 12
Purchase Order Finance. 13
Asset-Based Lending. 14
Equipment Leasing.15
Discount Mortgage Notes...16
Business Notes... 17
Structured Settlements... 18
Other Paper, products and Services... 19
Other Services and Products

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

Chapter Four
Marketing / Prospecting
Direct Marketing & Networking29
Relationships, List building & Database Management. 30
Prospecting, using the Internet & Your company Website31
Promotional Workshops & Seminars.32

Chapter Five
Getting Started
Training with DataMax.. 35
Website Construction & Hosting Services36
Questions & Answers Area... 37

ii

INTRODUCTION

INTRODUCTION
This guide is designed to provide you with a no-nonsense introduction to
the business of consulting in alternative commercial finance or what is commonly
referred to as the cash flow industry. It was written by industry professionals with
many years of experience in the areas of product knowledge and training as well
as marketing and prospecting methods utilized by seasoned industry business
development personnel. Most importantly, Consulting for Profit in the Cash
Flow Industry was written to address the myths and misconceptions about industry
careers which are most commonly proliferated by late night business opportunity
specialists 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 consultant
is multi-faceted, demanding, and, at times, complex. It is a business of polish and
sophistication certainly for which not all come prepared. It definitely is not, as the
late night business opportunity maestros might tell you, a business that anyone can
succeed at. Successful industry brokers and consultants are much sought after and
very, very highly compensated. If success in the industry was easy to accomplish
and something that anyone could attain, rest assured that everyone would be
doing it.
Most certainly, to enter the industry you will need to acquire a significant
amount of knowledge about alternative commercial finance and its components
such as accounts receivable factoring, purchase order finance, commercial
contract finance, export-import trade finance, asset-based lending, and forfaiting.
You may also wish to explore alternative consumer financing transactions such as
seller carry-back mortgage notes, owner financed business notes, structured
settlement liquidations, mobile home paper, tax certificates, and lottery / gaming
annuities. To become successful, your ability to obtain considerable knowledge
about these and many other areas of alternative commercial / consumer financing
is essential.
Paramount to your success, however, will be your ability to both market
and prospect efficiently and competitively and to generate the sufficient leads,
prospects, and ultimately clients which will generate your salary, consulting fees
and commissions paid to you from financing sources. As a consultant, you will
need to come prepared to network by joining referral organizations such as local
Chambers of Commerce, trade organizations, and fraternal and charitable clubs.
You will need to establish and implement productive lead-generating direct
marketing campaigns and efficiently organize and manage each name / lead
through the sales process. Most importantly, you must acquire expert prospecting
skills to qualify leads that present quality client potential and to discard the time
wasters 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 necessary
concepts, marketing skills, and product knowledge that you must acquire to
seriously enter the industry. It is designed to truthfully inform you about industry
opportunities and to assist you in making the important career decisions necessary
to successfully become a highly compensated consultant in commercial finance.

Robert McMahon
Founder and President
Aegis Factors, Incorporated
iii

Experience
Sourcing

knowledge

new career

business growth
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consulting

compensated

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eginning your new career as a

consultant in commercial finance
commi
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require a significant amount of
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sourcing
retrainExperience
when beginning this or any new career is
that you spend some time reflecting on
your goals and thebusiness
challenges ahead.
knowledge
Sourcing
Make sure you enter with the industry with
the determination necessary to succeed
new andnew
career
challenge
to see it through
to the end.

business growth
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entrepreneur

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income

lucrative

CAREER PROFILE
ONGRATULATIONS! You are
exploring the possibilities of a
new career as a consultant in
alternative commercial finance. Many
begin seeking new careers as a result of
corporate downsizing, lack of advancement potential, or simply job loss due to
outsourcing. To be certain, much of the
security that was once a benefit of being
a productive team player for large
domestic corporations is a thing of the
past.
More and more jobs are lost each and every day
to outsourcing. In New America, even state
sponsored service sector jobs are now dutifully
handled by residents of India, Pakistan, and other
areas of the Pacific Rim. Each year, more and more
manufacturers find they must relocate production
facilities to mainland China or face fierce and
insurmountable competition from others that do.
Even those companies that manage to remain competitive
without relocation, do so only through downsizing,
salary reductions, and employee benefits elimination.
Whether you are acting reactively as a result of already
experiencing some or all of the above or proactively
because you can clearly see that the handwriting is on the
wall, you are at the very least, exploring the possibilities
of a career move that will allow you to build a lucrative
consulting business, enjoy an upscale financially
comfortable lifestyle, and take pride in a profession of
prestige and distinction.
A career as a consultant / broker in alternative
commercial finance can provide a virtually unparalleled
standard of living for those equipped for the task and
driven by a need for success. Productive professionals
will enjoy extraordinary income potential, inherent job
security, and the exceptional freedom and flexibility that
comes with being your own boss. As an industry
consultant, the services you offer are constantly in
demand by individuals, small business owners, and large
corporations alike.

CAREER PROFILE

YOUR SERVICES ARE IN DEMAND

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.

The career opportunity you are exploring, consulting,

is one of the most rapidly expanding in business today. Your
new 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 where
in-house know-how is at a minimum or lacking entirely. For
individuals and business owners alike, few areas provide greater
mysteries and frustrations that those involving finance. As an
alternative commercial finance consultant, companies and
individuals may need your help to:
plan a mortgage liquidation strategy that was
necessary to effect the sale of a hard-to-sell home.
provide financing strategies for an exceptionally large
and unforeseen manufacturing order from a new
client.
arrange for letters-of-credit and purchase order
finance for a companys first Pacific Rim
manufacturing efforts.
assist in liquidating a seller carry-back mortgage to
help pay for pending medical bills.
liquidate a structured settlement to generate cash for
career re-training.
provide accounts receivable financing to assist in a
corporate restructuring.
arrange for a lump sum payment on a gambling jackpot to purchase a new home.
arrange an inventory revolving line of credit for a
companys seasonal increases in production .
liquidate a business note from the sale of a previous
business to purchase a new one.
create a commercial financing growth plan for a
newly formed small disadvantaged business
enterprise.
source venture capital for the developer of a life
saving medical process.

This list represents only a small fraction of the feegenerating opportunities available to financial consultants.

CAREER PROFILE

INITIAL CHALLENGES
As a new consultant you will face many challenges as
you begin your new business venture. As we mentioned
previously, if the industry was easy to successfully enter, everyone would be doing it. Below are just a few of the obstacles that
you will face as you begin operating as an alternative commercial
finance consultant:
Setting up a productive office with the necessary
equipment for operation.
Generating your first leads through direct marketing
and other lead-generating methods.
Creating a professional web site to assist in your
marketing and prospecting campaigns.
Acquiring significant amounts of product knowledge
in areas of commercial and consumer finance that are
little known to others.
Providing for living expenses while you bring in your
first deals.
Developing a state-of-the-art lead and prospect
computer-based management system.
Creating strategic alliances for lead referral
through networking.

INCOME POTENTIAL
While there will be many challenges for those that chose
to enter the industry, the reason that many attempt to do so is the
attractiveness of the industry and its considerable income
potential. Consider this:
The average stockbroker must manage between $100
and $150 million dollars of investor money (and manage it well) to
earn a six-figure income. The average commercial finance
consultant must place only $5 million dollars of client accounts
receivable with a commercial factor to earn the same amount of
commission income or greater.

And thats not all. In addition to the income potential

from commission products, consultants often have opportunities
to invest their own funds in exceptionally high yielding
investment opportunities.

To succeed, you will

need to acquire
significant amounts of
product knowledge in
areas of commercial
and consumer finance.

CAREER PROFILE

OPPORTUNITIES for INVESTMENT

Yields in excess of
50% for those armed
with the knowledge to
structure these
common transactions.

Without question, alternative commercial finance

consulting offers opportunities that few other vocations can
match. 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 savvy
members with exciting opportunities for personal investment and
profit. These include unique real estate purchase opportunities,
the availability of high yield mortgage notes, commercial invoice
purchases with yields in excess of 50%, and fast turnaround
payment guarantee purchase order transactions. Among others,
typical consultant investment opportunities include:
Factoring.the ability to purchase invoices from
small business owners that are payable by their
customers in 30 /60/ or 90 days but where
immediate capital is required for payroll or
other urgent needs. Yields often exceed 50%.
Seller Carry-Back Mortgage Notes.usually
offering 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 performed
in conjunction with factoring) by advancing funds
for verifiable purchase orders when vendors are
short 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 Guarantees.no, you dont have
to 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
portfolios.
The knowledge necessary to structure and benefit from
these and other unique investment opportunities is a bi-product of
consulting in alternative commercial finance. Many enter the
industry for these investment opportunities alone.

CAREER PROFILE

PERSONAL QUALIFICATIONS
Because many individuals make the decision to enter the
industry as the result of seeing a middle-of-the-night infomercial
from a home business opportunity guru or after attending a free
seminar, the failure rate for those that subsequently sample the
business is extremely high. We would guess in the 90%+ range.
And, for the third time, we will tell you, if it were easy, everyone
would be doing it. It takes a special person with unique entrepreneurial characteristics, commitment, and qualifications to succeed
as a consultant. It takes a very special person equipped with an
exceptionally unique compliment of skills, marketing savvy, and
product knowledge to succeed as an alternative commercial
finance consultant. Before you leap into the industry, consider
the following:
A great deal of your time will be spent networking.
You should be comfortable around others and have
the time and financial capability to join multiple
organizations that include bankers, lawyers, real
estate professionals and others that can refer
business to you.
It often takes many months to begin generating any
significant amounts of income. Before entering the
industry, make sure your finances are in order. Be
sure that you have the ability to stick with it for at
least 6 months with little or no significant income.
Even if you work from home, you will have office
expenses. Including a computer, you should allocate
a minimum of $3,000 for office setup essentials
during the startup period.
While you must obtain considerable amounts of
product knowledge, your livelihood will depend on
your marketing and prospecting capabilities. You will
need a reasonable marketing budget of $500 to
$1,000 each month just for the essentials.
One of the best methods of developing new
accounts is through workshops and seminars. You
should feel comfortable speaking in front of groups of
twenty or more people.
This is a very prestigious business and you will need
to look and dress the part. This includes suits and
ties for men, business suits for women and a late
model, 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 the
first lean months.

CAREER PROFILE

INGREDIENTS FOR SUCCESS

Do you have a good

command of the
English language with
diction that is easily
understood by all?

One major difference between a corporate 9-5 job and a

career in consulting is that the business is YOU. Your success or
failure, your self esteem, your personal self worth and your level
of income all depend on your performance. If you fail, it is all on
your shoulders. In the end, there is no one to blame but YOU.
Therefore, before embarking on this career path, inventory your
personal assets to better determine your chances at success.
Do you have the capital required to start a new
business and to provide for you and your family for
6-12 months during the start-up phase?
Do you have the drive and mental toughness that it
requires to be independent and fully on your own?
Do you have the computer skills necessary to run
the business, keep records, track marketing
campaigns and organize leads and prospects?
Do you have the networking skills and time
necessary to join fraternal, business, and trade
organizations and develop referral relationships?
Do you have a good command of the English
language with diction that is easily understood by
all?
Do you have good telephone skills that can assist
you in your marketing efforts?
Do you enjoy being the center of attention and a
problem solver?
Do you capabilities to operate your business during
normal 9-5 operating hours?
Do you understand direct marketing and have you
any experience in telephone prospecting and cold
call canvassing?
Do you have clear cut financial and career goals?
Do you have a space available to create a home
office work area or the excess capital for
commercial executive office space?

Purchase order finance

Business notes

invoice

factoring

Structured settlements

deed

Asset-based lending

hard money

Accounts receivable

forfaiting

ne of the first gaming

tasks you must perform
Lottery
annuities
when entering the alternative
commercial finance industry is to
Purchase
order
invoice
become completely
familiarfinance
with a vast
array of financial products that may be
completely unknown to you. Many will
Business
notes
factoring
have terminologies or jargon that you
must become familiar with so that you are
comfortable when settlements
speaking with funding
Structured
deed
sources and their representatives.

Asset-based lending

hard money

Accounts receivable

forfaiting

Lottery
Factoring

gaming annuities
purchase orders
10

PRODUCTS & SERVICES

f you are still reading this guide, that means that
you believe you have the necessary qualities to
pursue a career as a consultant / broker in
alternative 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 and
service areas in this chapter. Keep in mind that new areas
emerge literally daily. There are also many tangents
available to specialize in as you become proficient in many
forms of financing. After providing factoring and purchase
order finance for several years to manufacturing clients, for
example, one consultant found that she could additional act
as a representative between product manufacturers wanting
to contract manufacture with Chinese factories, and the
factory representatives that arranged such manufacturing
facilities. This took no special talent, no additional knowledge 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 business
is, in fact, just that..knowing where to go to get the job
done. It is important, for example, that you know the
difference between a purchase order and an invoice so that
you can contact the appropriate capital source when you are
arranging such financing. When dealing in mortgages, you
must be aware of the terms of a mortgage..first mortgage,
second mortgage, balloon, etc. so you can present paper
for sale and structure transactions professionally and
confidently.
How you obtain the necessary product knowledge is
another 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 topics
presented on the following pages are brief introductions to
sometimes very complex transactions. To be taking
seriously by those that will refer business to you, (bank
loan officers, attorneys, CPAs, and other professionals) you
must know your business inside out. Professionals such as
the above will not risk their reputations on someone that is
of questionable authority. As you first build your business,
you will need to seek expert training and consultation to
avoid making critical mistakes that are sometimes
impossible to correct. As it is often said, you have only one
opportunity to make a first impression. Since a great deal
of your business will be the result of building referral
relationships through networking, make sure your
credentials and base of knowledge are in place and valid.

11

PRODUCTS & SERVICES

COMMERCIAL FACTORING
For brokers and consultants, commercial factoring often
forms the key component of their product mix. This is because of
its broad appeal as a financial problem solver to small and midsize business owners.
Factoring is defined as the process of purchasing invoices
from a seller (known as the client) by a buyer (known as the
factor). These invoices are purchased at a discount from their
face value with an initial advance (usually 75-80 percent) and
upon the ultimate payment of the invoice by the clients
customer, the balance of the value not initially advanced is then
rebated to the client minus the factors fee.

By referring only 4-5

million dollars in
client invoices to
factors, a broker will
typically earn in
excess of $100,000
per year.

Factoring is one of the most powerful financial tools

available to small business. While a financial accommodation, its
real value is as a growth engine to companies unable to arrange
for more typical business loans from commercial banks. Those
businesses that employ factoring are able to accept orders for
goods or services from larger customers that demand 40, 50 even
60 or 90 day terms of payment upon invoices. With the money
from advances upon purchased invoices, clients that utilize
factoring can provide for weekly payroll, pay their suppliers
timely, make tax payments, or satisfy a host of other financial
needs. They are not credit bound while waiting for slow
paying customers to remit payment. Because of this flexibility,
they can attract very large commercial clients and grow their
businesses quickly and efficiently.

COMMISSIONS
At any given time there are about 1,000 commercial
factors operating domestically. Virtually all factors enjoy working with independent brokers that source business for them.
One of the strongest features of factoring from the consultants
standpoint is the standard commission fee structure paid for
referrals.
Most commonly, factors pay 10% of their earned fees to
the broker / consultant that sourced the client. This fee is paid
monthly and for the life of the account. Very typically, business
owners that choose factoring to finance the growth of their
company do so for a period of many years. This means the
broker that generated the client can expect a monthly check for
24, 36, 48 months or even longer. By referring only 4-5 million
dollars in client invoices to factors, a broker will typically earn in
excess of $100,000 per year.

12

PRODUCTS & SERVICES

PURCHASE ORDER FINANCE

Commercial purchase order finance literally goes handin-hand with factoring. In fact, the vast majority of purchase
order finance transactions subsequently result in the creation of
a factoring transaction. (earning a double commission for the
lucky sourcing consultant)
Purchase order transactions are very similar to factoring
transactions. In the case of the purchase order transaction, however, the product or service has not actually been received by the
customer yet and an invoice cannot be forwarded for payment.
The funds advanced from the purchase order finance company are
designated to get the product or service delivered so that it may
be invoiced for payment and completed.
Most typically, purchase order transactions involve
export-import trade. A contract manufacturer in the U.S. that
uses a Chinese factory to produce its product, for example, must
pay that foreign factory prior to shipping the goods to its
customer. Since the customer does not yet have the goods, an
invoice cannot be generated for payment yet.
To finance this transaction, a purchase order finance
company will first verify the validity of the purchase order. It
will then issue a letter-of-credit guaranteeing payment for the
goods after manufactured. Upon notification of the completion of
the order by the factory, it will inspect the goods manufactured to
be certain they meet specifications. Upon delivery of the goods
to a freight forwarder (shipping company), the purchase order
financier will then advance funds upon the purchase order
directly to the foreign factorys bank.

COMMISSIONS
As previously mentioned, most purchase order financing
ultimately also involves a factoring transaction. When the goods
arrive in the U.S. and are delivered to the clients customer, an
invoice can be generated. If the customer was granted 45, 60, or
90 day terms of payment from the time of the orders receipt, a
factor will take out the purchase order finance company and
finance the transaction for the balance of the time until final
payment by the customer. This results in a double commission
being paid to the sourcing broker.
Like factors, purchase order finance companies typically
pay 10% of their earned fees as a commission. This amount is
paid monthly and for the life of the account.

13

If the customer was

granted 45,60,90 day
terms of payment from
the time of the orders
receipt, a factor will
take out the purchase order finance
company and finance
the transaction until
final payment by the
customer. This results
in a double commission
being paid to the
sourcing broker.

PRODUCTS & SERVICES

ASSET-BASED LENDING

Asset-based loans are

most often found in the
form of revolving lines
of credit or as it is
commonly termed a
revolver

As opposed to factoring, asset-based lending is provided

as a loan to clients against accounts receivable rather than their
actual purchase. Additionally, asset-based loans provide
financing for inventory and work in process. Asset-based lending
implies a loan that is simply made which is backed by an asset of
a business such as equipment (as opposed to a non-collateralized
signature loan). This, however, is not the case. Asset-based
loans are those loans made to a business which are collateralized
only by accounts receivable and inventories (to include work in
process).
As opposed to factoring arrangements which can be
granted to small businesses with as little as $10,000 to $20,000 in
accounts receivable, asset-based credit arrangements usually
involve much greater amounts with $1,000,000 or more being
more the norm. Because asset-based lenders do not actually
purchase the accounts like a factor, the credit of the borrower
must be stellar. Asset-based loans, therefore, are only granted to
those companies with profitable operational histories and
impeccable credit.
Asset-based loans are most often found in the form of
revolving lines of credit or as it is commonly termed, a
revolver. They will include funds for accounts finance, the
purchase of inventory, letter of credit transactions, etc. Funds
will be withdrawn from the credit line as needed and then
re-deposited as accounts are paid and inventories depleted.
The borrower generally pays interest only on the funds withdrawn
for use with a small fee paid overall for the credit facilitys
availability.

COMMISSIONS
As 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 client
referral. This generally ranges form 1/4% of the loan amount to
perhaps 1/2% for very small loans (under $500,000). Still, even
at such low fee rates, a $5,000,000 credit facility granted to a
client can often amount to a $25,000 to $35,000 fee to the
sourcing agent.
Typically, alternative commercial finance consultants
tend to focus their marketing efforts more in the area of factoring,
purchase order finance and export-import trade finance where the
commission streams are for longer periods of time. The
occasional asset-based loan is look upon as a bonus when
discovered.

14

PRODUCTS & SERVICES

EQUIPMENT LEASING
Another opportunity for commission income available to
consultants is in area of equipment leasing. Equipment leasing is
simply a method of acquiring equipment on a time installment
basis rather than purchasing it outright. One of the most
important components to any leasing decision are the tax
consequences to the business. Generally speaking, the decision to
lease equipment rather than purchase directly will be made by a
companies tax advisor. Additional considerations can involve a
companys current financial health and how its existing credit
arrangements are structured.
When providing advise on equipment leasing, consultants
will most often work closely with a lease broker or
syndicator. Simply put, professional lease brokers match up
prospective lessees with lease investors. They will formulate the
basic structure of the lease, lay out the terms to the lessee and
package the deal.
If the lessee finds the package acceptable the broker will
then shop the deal to lease investors. Some brokers will actively
finalize the leasing arrangement through the documentation stage
and shepherd the transaction. Others will turn the transaction
over to the lease investment company and step out altogether.
At this point you may be asking whether you, as a
financial consultant can act as the broker and earn the entire fee?
The answer is...absolutely. It is usually better, however, to learn
the ropes from a professional lease broker before you attempt to
go it on your own. One of the lease brokers qualifications is
having an expansive knowledge of the leasing industry. He/she
must have an expansive database of lease purchasing companies
and know their underwriting guidelines and purchasing
parameters.

COMMISSIONS
For his/her services, a lease broker typically will earn
1-8% of the cost of the leased equipment which is paid for by the
lease investment company upon closing. As a sourcing agent to
the broker, a consultant will typically earn 35-50% of the lease
brokers commission.
While usually acting only as an agent, lease brokers
occasionally invest some of their own funds in the equipment
along with the lease investor. By doing so, the broker can add
credibility to the overall transaction and earn a handsome return
on his/her own investment capital.

15

For his/her services, a

lease broker typically
will earn 1-8% of the
cost of the leased
equipment which is
paid for by the lease
investment company
upon closing. As a
sourcing agent to the
broker, a consultant
will typically earn
35-50% of the lease
brokers commission.

PRODUCTS & SERVICES

DISCOUNT MORTGAGE NOTES

There are literally

billions of dollars of
owner financed
mortgage notes in
existence at any given
point in time.

Discount mortgage notes are a commonly sought after

product area by many consultants and can actually be looked at as
a stand-alone business. Most often discount mortgages are
referred to owner financed mortgages or seller carry-back
mortgages. They are simply the paper result of a property owner
deciding to finance a piece of real estate personally rather than
requiring the buyer to seek funding from a more traditional
source such as a bank or commercial real estate lender.
Owner financed mortgage notes often come about when a
piece of property is difficult to sell or when the buyer cannot
qualify for financing. It may even be because the land is rural
and 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. As
interest rates rise and banks tighten credit policies, owner carryback mortgages begins to play a larger part in creative real estate
financing. In periods of declining real estate values or bursting
bubbles, owners use it as a sweetener to help sell their
properties faster and at higher prices.
Many home sellers keep these private mortgage notes due
to 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.

COMMISSIONS
Consultant fees in the area of mortgage notes are usually
charged as a discount to the wholesale price offered for the note
by a note buyer. For example, after submitting a $200,000 note
for purchase to a buyer, you might receive a wholesale quote of
90 cents on the dollar or $180,000. As a broker, you simply subtract your fee of say, $10,000 from the wholesale bid and give the
seller a retail bid of $170,000. If accepted, the buyer provides
all of the closing documents.

16

PRODUCTS & SERVICES

BUSINESS NOTES
Seller Financed Business Notes are very similar to Owner
Financed Mortgage Notes except that the note is the result of a
business owner selling his/her business rather than a homeowner
selling a home. The creation of a business note is exceptionally
common when selling a business due to the fact that many banks
will only lend on hard assets such as real estate and buyers of
businesses find it difficult to finance the intangible assets of a
company.
According to the U.S. Small Business Administration
(SBA), there are approximately 23 million small businesses in
America at any point in time. Statistically, about 10% of these
businesses are sold each year and a majority of these sales include
some 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 business
holding the note does not realize that there is a ready market
available for liquidation. While not as expansive as the network
of residential note buyers, business note buyers do exist and they
are especially attracted to promissory notes which have a
commercial real estate component incorporated.
The purchase of business notes 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
poor management. While a previous owner of a restaurant, for
example, may have been very successful, a new owner might fail
miserably due to just small changes in menu items. From the
note buyers standpoint, these are risks which are hard to quantify
and therefore bids on private business notes that do not have a
real estate component carry very steep discounts.

COMMISSIONS
Commissions generated on Seller Financed Business
Notes are generally calculated and created the same way as
Owner Financed Mortgage Notes..that is, upon receiving a
wholesale bid for the note, it is simply discounted further to
represent 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 a
consulting fee upfront for their efforts. This is usually an
hourly rate (ex. $50 per hour) for a guaranteed 10 or 20 hours of
time spent in attempting to source the deal.
.

17

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.

PRODUCTS & SERVICES

STRUCTURED SETTLEMENTS

When purchasing
structured settlements,
one of the main
determining factors
regarding the amount
paid is the insurance
company involved.

Structured Settlements or Structured Settlement

Annuities are certain types of income streams usually paid by an
insurance company to compensate an injured individual as the
result of a personal injury lawsuit, medical malpractice suit,
wrongful death suit or any other type of personal liability
settlement.
As a direct result of injury or wrongful death, the
plaintiffs in a litigation are commonly awarded very large
settlements by the court or jurors. Rather than receiving the
settlement in a lump sum, the injured party is most often paid out
over a number of years using some form of annuity structure.
The annuitant (the injured party) receives the money in an annual
lump sum, monthly payments, or some combination of both. If
the annuity is paid as the result of an on the job injury
( workers compensation ) state laws usually prohibit the
purchase of such workers compensation annuities.
When purchasing structured settlements, one of the main
determining factors regarding the amount paid is the insurance
company that is involved. Some insurance companies are rated
higher than others financially and thus make them a much better
credit risk in the eyes of a buyer. Additionally, payments from
such annuities are never assigned directly to the note buyer.
Repayment upon the loan granted against the annuitys purchased
payment stream is simply through a written agreement with the
injured party.
The discount rate (amount paid below the face amount)
on structured settlements and annuities is slightly higher than that
on owner financed mortgage notes for the reasons mentioned
above. Since the payment cannot be made directly to the buyer,
before funding a purchase, the settlement buyer will most often
require that the insurance company agrees to wire monthly
annuity payments into a joint checking account set up specifically
for that purpose.

COMMISSIONS
Because the purchase of structured settlements must be
approved by the court, commission fees paid to sourcing
consultants are calculated as a portion of the discount received by
the structured settlement purchaser. Such discounts must be
disclosed in court documents. Structured settlements, therefore,
do not offer the same lucrative commission opportunities as are
found in the private note sector.

18

PRODUCTS & SERVICES

OTHER PAPER, PRODUCTS & SERVICES

In addition to those previously mentioned, there are
dozens of other areas that provide significant opportunities for
investment 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 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.

As it is readily apparent, the number of opportunities to

generate commission / fee business and for personal 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. For consultants, it is
important to stay connected and to constantly add new arrows
to your quiver of products as new commission generating cash
flow income streams are discovered.
In addition to the host of commission generating
products available to represent, many consultants are focusing
on providing fee-based consulting services. Conferencing with
small business owners in their start-up phase regarding the types
of financing available to that business can be of great value to
cash-strapped owners. Such consulting services can assist new
entities to grow exponentially in their early years. Fees for such
services can easily exceed $50 per hour and for the experienced,
over $125.

19

PRODUCTS & SERVICES

WHERE ARE THE BEST OPPORTUNITIES?

A new and fast

growing area in alternative commercial
finance, advancing on
earned commissions to
real estate agents and
brokers has become
even more rewarding
as real estate sales and
commissions have
grown dramatically.

With such an array of products available to represent, it is

easy to understand why many commercial finance consultants
lose focus when first beginning to operate. While there are many
opportunities in all areas, several offer new consultants an easier
path to success simply due to the demand for the service and the
ease in which consultants can recognize prospective clients
during their marketing efforts. These include:

Factoring.with no formal licensing required, new

consultants can be successfully marketing for
prospects almost immediately. Consultants that
focus in this unique area of commercial finance find
their services greatly in demand and quickly learn
how to recognize businesses and industries where
factoring provides the most accessible solution to
problems of cash flow. Additionally, with its unique
trailing commission structure, factoring is often the
core product for both new and established financial
consultants.
Purchase Order Finance.as manufacturers
continue to move offshore there is a growing need
for domestic purchase order finance. And, because
purchase order financing arrangements often require
factoring as a component, marketing to small manufacturers requiring this unique form of business
finance can be doubly rewarding.
Real Estate Commission Advances...a new and fast
growing area in alternative commercial finance,
advancing on earned commissions to real estate
agents and brokers has become even more rewarding
as real estate commissions and sales have spiked.
Discount Notes and Mortgages.a tried and true
area of alternative finance that forms the starting
point for many new consultants, providing a source of
liquidation for privately held mortgage notes has been
in demand for over twenty years. Though many states
now require a mortgage brokers license for this area
of practice, seeking out owner financed discount
mortgage notes can be a core product area for those
with an attraction to real estate investment or
brokering.

20

21

COMPUTERS OFFICE SPACE FAX

TELEPHONE SYSTEMS E-MAIL
HIGH SPEED INTERNET STORAGE
DATABASE MANAGERS CELL PHONES
EXECUTIVE SUITES PARTNERSHIPS
OFFICE FURNITURE business DRESS
ne of the more attractive attributes of
the commercial finance consulting
HOME VS. business
commercial
space
is the ability to run your
day-to-day operations from the
convenience of a home-based office.
AUTOMOBILE
COMPUTERS
Even those that chose
to operate from a
more traditional commercial office
environment find that inexpensive
OFFICE SPACE
& design
executive suites
which offer cooperative FAX
support services such as conference rooms
and answering services provide everything
that is required
to get the job done right.
TELEPHONE
SYSTEMS
E-MAIL

HIGH SPEED INTERNET STORAGE

DATABASE MANAGERS CELL PHONES
EXECUTIVE SUITES PARTNERSHIPS
22

OFFICE SETUP
etting up your office or workspace is an important first
step in beginning your career as a consultant in
alternative commercial finance. This industry is often
touted 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 equipment
and support items you will need to be in business are modest
and 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 cabinets
and storage. The caveats are these. You will need a work area
at home that is free from distractions such as children and loud
noises. If you are attempting to operate part-time, some of that
time will need to be during normal business hours of 9-5. In
our estimation, the following is the type of setup you will need
to really succeed.

HOME OFFICE
You will need a room of reasonable size (10x10) that is
office only and free from distractions such as television sets
and children at play. Try to choose a room with natural light
and some view. Avoid dark prison-like atmospheres such as
basements which are definitely not conducive to productivity.
Make certain that the office has a door that can be closed.
Computer
A great deal of your marketing efforts will begin with
direct marketing or database marketing. You must have a
computer, monitor, and printer of recent vintage to manage
leads and prospects. If you do not have a system currently,
earmark approximately $1,000-$1,200 for a suitable system.
Software
You will need office support software for your
computer if it does not already have it. We would recommend
Microsoft Office which includes both Word, Publisher and
PowerPoint programs. You will use all three in your marketing
efforts and they will save you thousands of dollars over time.
The most important software item you will need is a
database management system. FactorMax Business
Development Systems are specifically designed for
consultants in the alternative commercial finance arena.

23

OFFICE SETUP
Printer
You 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 mark
in cost. Laserjets have declined markedly in price and increased
in reliability over the years and can be purchased at very affordable levels. The most important thing to keep in mind is not to
skimp in this important area..

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.

Telephone Systems
One of the more important components of your office
will be your telephone and message handling system. A typical
telephone answering system will not due and will only serve to
assist you in losing valuable leads and prospects. To succeed you
will need a two line phone system with call waiting. You will
also need a cellular phone that can accept calls forwarded to it
from your base system at home. Additionally, we strongly
recommend an answering service that is very professional in
nature.
Facsimile Machines
You will require a plain paper fax that has the ability to
scan documents and also to make document copies. These 3-1
machines are very inexpensive and can also serve as a temporary
back-printer in the event that you standard printer fails.
Desk and Work Areas
Typical 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, or
Staples, however. Even though this business is one which is
primarily based on networking and direct marketing, you will
find you need more work space than you think. Make sure that
you have enough filing space to maintain broker packages you
have requested from funding sources, and the hundreds of support
documents, mailers, and brochures you will need during your
day-to-day marketing efforts.
Lighting
Try 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.
Storage
In addition to filing cabinets, you will need a closet area
for storing office supplies such as printer paper, envelopes, letterhead, file folders, etc.

24

OFFICE SETUP

COMMERCIAL OFFICE SPACE

As a consultant, you may elect to lease traditional
commercial space to house your business. This is most often in
the form of an executive suite.
Executive suites are cooperative quarters where
occupants have a small, stand alone office but share some
common areas and services such as a conference room, reception
area, and answering service. They are a favorite for stockbrokers
and insurance agents that have independent practices.
In addition to executive suites, many alternative
commercial finance consultants will seek lodging in community
banks. When banks build their buildings, they will often overbuild to allow for expansion in the future. Until the future
comes, they have space available to lease.
The benefits of leasing a small amount of office space
from a bank are obvious. As banks turn down loan applicants,
many of those business owners can be directed to your office for
help in securing some form of alternative financing.
In addition to referrals, becoming affiliated with a bank
lends a great deal of credibility to your business model. Dont
expect the bank to wholeheartedly embrace your business
immediately, however. You will need to establish relationships
within 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 EQUIPMENT
Your office equipment required for setting up shop in
commercial space is identical to that needed for your home office
except that looks become even more critical. Most executive
style suites have large windows or floor-to-ceiling glass areas so
they are not confining. The view out is great but this feature also
allows 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 and
unsightly storage. A great deal of office furniture sold in
discount stores is junk. You will be surprised to see how quickly
legs fall off and drawers quit opening. It is best to spend a few
more dollars initially to purchase furniture of commercial quality
that will stand up to heavy use. You may also consider used
furniture from liquidators if it is of very good quality.

25

Spend some time on

office layout and
furniture design.
Make sure that those
that look in dont see a
myriad of wires and
unsightly storage.

OFFICE SETUP

OTHER AREAS OF IMPORTANCE

In addition to the physical and equipment aspects of
setting up your office, you will need additional items before you
can actually say Im in business.

Websites have become

so important to the
overall marketing
efforts of any sales
operation that its hard
to believe we ever did
without them.

Your Business Name

The name you select for your business is of paramount
importance. When marketing, it should convey to leads and
prospects the nature of your business. Too many of those first
entering the industry are not aware of the importance of your
name.
Letterhead, Envelopes and Business Cards
You will need the basics here including two or three sizes
of envelopes, professionally designed and printed business cards
and a quality letterhead.
Brochures, Flyers, and Sales Literature
As you determine your areas of focus, (factoring,
discount notes & mortgages, export-import trade finance, etc),
you will need to create sales support documents such as
brochures, mailing stuffers, and other marketing pieces. This is
no area to skimp. Well designed brochures and flyers will
convey quality and professionalism to your prospects. If
necessary, hire a specialist to assist in creating your important
marketing pieces and sales literature.
Website
Websites have become so important to the overall
marketing efforts of any sales operation that its hard to believe
that we ever did it without them. For those operating as
consultants in commercial finance, a professionally designed
website is a key component to virtually all direct marketing
campaigns.
For consultants, websites act as a virtual billboard. They
are a place where prospective clients can go at their leisure to get
more information about your services. Most importantly, your
website is where prospects will go to request additional
information 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 information on each service or product you offer. Additionally, it should
contain a form where leads and prospects can order additional
information or request that you contact them.

26

27

List building cold calling

Direct mail telephone marketing
Networking canvassing
Database management system
Public speaking free publicity
hile you will need to acquire a great
deal of product knowledge to succeed
Relationship
building
in the industry, your marketing skills
will ultimately determine your degree
of success as a financial consultant. If you
List building
cold
calling
do not already possess them,
you will need
to quickly develop marketing skills in
many areas including direct marketing,
networking,telephone
and relationship building. marketing
Direct mail
Most importantly, you will quickly find that
the telephone is the key tool in your
marketing arsenal.
Networking
canvassing

Database management system

Public speaking free publicity
Relationship building
Product shopping
28

trade shows

MARKETING
arketing for leads and prospecting those leads for
clients are the most important aspects of actually
developing your consulting business. In fact, your
success or failure will most likely be determined by
how well you generate leads and prospect rather than your
actual product knowledge. Without question, a well rounded
knowledge of the industry is essential. It is your marketing
skills that will bring home the bacon, however.
For most consultants operating in alternative
commercial finance, marketing efforts will be focused
heavily in the areas of direct marketing, networking, and
relationship building. All three are highly important and the
sooner you develop your skills in these areas, the faster you will
begin producing commission dollars.

DIRECT MARKETING
Direct marketing is a systemic approach to business
generation which is designed to elicit a response from a
suspect or prospect in order to develop a client relationship.
As opposed to advertising, which simply builds brand awareness, direct marketing focuses on developing business now!
As a consultant in commercial finance, you will
utilize a host of direct marketing tools including direct mail,
canvassing, telephone marketing, web-based internet marketing,
and broadcast marketing.

NETWORKING
Networking is simply a matter of meeting people that
can refer business your way. Research shows that many
successful home-based businesses, succeed primarily on
networking in their early stages. Many opportunities for
business development will result from being in the right place
at the right time. Those that employ networking as a primary
marketing tool will join many formal or informal networking
organizations such as Chambers of Commerce, fraternal
clubs (Rotary, Kiwanis, etc.) or social organizations in
which they have a special interest.
Networking is often called word-of-mouth
marketing because it is just that. Informal networking is
done just about everywhere including sporting events, after
hours social gatherings, religious functions, and so forth. It is
simply a matter of identifying and frequenting those places and
events where prospective clients or referral sources patronize.

29

MARKETING

RELATIONSHIP BUILDING

As a commercial
financial consultant,
you must develop good
lists for lead generation and prospecting.
The effectiveness of
your list building skills
will very much
determine how rapidly
you succeed in the
industry.

Relationship 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 used
to develop business relationships with those individuals that you
are actively pursuing as a client.
Relationship building focuses on establishing a business
trust that will lead to a client relationship at some time in the
future. It basically says OK, you know what my services are and
when you need me, Ill be here. It is an important marketing
methodology used by those in business for the long haul. It
will provide a steady stream of business each year if properly
developed.

LIST BUILDING
As a financial consultant, you must develop good lists for
lead generation and prospecting. The effectiveness of your list
building skills will very much determine how rapidly you succeed
in the industry. Building poor lists of unqualified prospects is a
tremendous time waster and will lead to frustration down the line.
Conversely, spending the time necessary to build quality lists of
qualified prospects will insure the rapid growth of your business
and, of course, your income. As you begin to grow your financial
consulting business, you will quickly learn the value of being able
to recognize those businesses and/or individuals that can qualify
for and that need your services and expertise.

DATABASE MANAGEMENT
As you begin to hone your marketing skills, it will also
quickly become evident that a good database management system
is absolutely essential. Categorizing members of prospecting lists
and recording pertinent information about them for networking
and relationship building is extremely important. Because of the
physical numbers of leads and prospects that you will be dealing
with, sound database management becomes a necessity.
By definition, all direct marketing is database marketing.
For those first beginning their career as a commercial finance
broker, this includes the all important medium of direct mail
marketing. Managing productive direct mail campaigns can only
be accomplished with a computer and a state-of-the-art database
management system.

30

MARKETING

PROSPECTING
Prospecting is often defined as seeking that which is of
value. For financial consultants and brokers operating in the
business development area of commercial finance, prospecting is
often better defined as discarding that which is off little or no
value.
The skills you develop at list building will provide your
business with the raw material for success. Prospecting that raw
material the proper way is what will generate your income of
commission dollars. Modern practitioners of guerrilla marketing know the value of developing keen prospecting skills and
discover methods of getting business to come to them.

USING THE INTERNET

The wealth of information available on the internet has
dramatically changed how we market and taken a great deal of
the grunt work out of it. The time necessary to build good
prospecting lists, for example, has been reduced by 90% due to
the vast amount of quality information available on the Web.
Successful consultants learn quickly the value of surfing for
prospects and leads and will spend a good deal of after hours time
using the information easily accessed on the internet for building
quality prospect lists.
In addition to being an incredible source of raw names
for your compiled lists of leads and prospects, the internet will
also provide you will valuable information regarding networking
opportunities such as trades shows and expositions, clubs and
fraternal organizations to join, business support groups, trade
magazines and publications for advertising, etc.

YOUR COMPANY WEB SITE

As 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 much
marketing support as room full of assistants.
In the field of commercial finance consulting, your
company web site will act as a virtual billboard of information
that prospective clients can access at any time of the day. It will
support all of your marketing efforts by giving those you meet
quick access to more information about your products and
services. Your web site must have a form area where prospects
can request additional information or subscribe to your offers.

31

In todays business
arena, you simply
cannot market
effectively without a
company web site,
period. A professionally designed web site
provides as much
marketing support as a
room full of assistants.

MARKETING

HOLDING WORKSHOPS & SEMINARS

Holding 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 methods
for those that have no experience speaking in front of small
crowds. This forum is well worth mastering, however. Those
that use it find it almost impossible not to open one or two new
accounts from each lecture.

For those that suffer

from shyness or that
are withdrawn in
crowds, be advised that
success in commercial
finance consulting will
require that you
exhibit an outgoing
personality

Workshops and seminars can be given early in the

morning as breakfast meetings, at noon as luncheon seminars, or
after hours as an informal workshop. They are generally held in a
restaurants private meeting room for breakfast or luncheon
seminars or at hotel / motel locations for after hours lectures.
Employing seminars and workshops as a primary method
of marketing literally kills two birds with one stone. This is
because the method that is most widely used to invite prospective
clients to a seminar is direct mail followed up with a phone call.
It is actually during the follow-up phone call that you will qualify
the prospect. The seminar then becomes a time to sell and close
the deal.

OTHER MARKETING REQUIREMENTS

No matter which type of marketing method you choose,
the effectiveness of that method will be proportional to the
amount of personal contact or human factor you add with the
prospect. It is often quoted that direct mail is 10 times more
effective when followed up with a telephone call. In the business
finance world, the multiple is more than 50 times more effective.
For those that suffer from shyness or that are withdrawn in
crowds, be advised that success in commercial finance consulting
will require that you exhibit an outgoing personality and a
confidence in groups and gatherings.
Above and beyond all, the importance of the telephone
and your ability to use it effectively to prospect for and qualify
leads cannot be overemphasized. It is the most powerful tool in
your arsenal and must be used daily for prospecting and networking. Organizing your calls and tracking their effectiveness is the
job of your database management system. You must first, however, provide the database management system with data. There
is no faster and less expensive method for doing just that than the
telephone.

32

33

TRAINING WEEKEND COMPUTER

FACTORMAX SYSTEM
BROKERS GUIDE

BUSINESS NAME

CLASS SIZE

SCHEDULE DATES

WEB SITE

ONLINE SUPPORT

o assist you in entering the alternative

MENTORING
SUPPORT
commercial financeSALES
industry quickly
and successfully, DataMax Marketing
Systems, Inc. offers new consultants
TRAINING
WEEKEND
COMPUTER
the necessary
training, marketing expertise,
and support to grow your business rapidly
and become a much sought after independent financing
consultant by small
and midFACTORMAX
SYSTEM
BROKERS
GUIDE
size cash-starved business owners. You can
begin earning consulting & commission
revenue today with the help of DataMax
BUSINESS
NAME CLASS SIZE
Marketing Systems.

Schedule DATES
WEB SITE

commissions

ONLINE SUPPORT

MENTORING

SALES SUPPORT

FACTORMAX

TRAINING CLASS
34

GETTING STARTED
or those career oriented individuals seeking to enter the
lucrative alternative commercial finance and cash flow
industry, DataMax Marketing Systems can provide
you with the training, marketing expertise, and support
necessary to make your entrance into this prestigious industry a
quick and profitable one.

TRAINING
Consultant training through DataMax Marketing
Systems is provided in both conference and home study
formats.

Two Day Conferences-Professional Training

An intensive two day instruction program for new
entrants into the commercial finance community, our training
conferences 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 known
alternative consumer finance areas of discount mortgage notes,
structured settlements, and lump sum annuity distributions.
This unique program is designed for novices as well as
those with some lending and/or consulting experience and will
help build their careers with a solid knowledge and awareness of
the principals of these important forms of alternative commercial
finance. For those seeking new vocations in this highly paid and
lucrative profession, our two day Training Conferences
provide a wealth of experience that money simply cant buy.

Home Study-Take the Course at Your Leisure

For those unable to attend our conferences, a Home
Study option is offered with our comprehensive training manual
and publication Making Money in Paper which offers
complete consultant training in the convenience of your own
home. Additionally, should you chose to attend a training
conference at a future date, you will receive a 50% discount
from our normal registration fees.

Get Our Texts and Publications in Advance

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

35

For those unable to

attend our conferences,
a Home Study option is
offered with our
comprehensive training manual and
publication Making
Money in Paper
which offers complete
consultant training in
the convenience of
your own home.

GETTING STARTED

PROFESSIONAL WEBSITES
Because of the necessity of a professionally designed
website when marketing your services, DataMax Marketing
Systems offers its associates and consultants standardized
websites in three distinct formats:
Factoring and Commercial Finance Website
A 10-12 page commercial finance website which
features information on factoring, purchase order finance,
Import-export trade finance, and asset-based lending. These
FactorMAX supported sites also contain a featured industry
for targeted marketing campaigns and response form fields for
prospect/lead requests for offers.

All DataMax websites

are 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 effective
web support.

Discount Note and Mortgages Website

A 7-8 page website which features important
information about owner financed residential mortgage notes,
business notes, structured settlements, gambling/lottery
liquidations and other consumer transactions. Sites include form
fields for online quotations and responses to direct marketing
offers.
Master Broker Website
For those consultants practicing in both commercial and
consumer transactions, These 15-16 page websites provide all of
the web-based marketing support necessary for all of your direct
marketing campaigns and networking opportunities. All Master
Broker websites are FactorMax supported.
Hosting and Website Support
All DataMax websites are 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 effective web support. This includes hyperlinked
support pages for targeted feature industries, time, date, and
place support for your local workshops and seminars, and fast
turnaround and fulfillment for offer requests.
Hyperlinks
For consultants with existing commercial or business
websites that want to hyperlink to those sites, DataMax will
gladly provide multiple links for the convenience of your web
visitors.

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QUESTIONS AND ANSWERS

QUESTIONS AND ANSWERS
Often 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 and
users 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 that
we utilize and the time of the year. We attempt to hold conferences in southern regions during
the winter months and other regions during summer. Upcoming conference schedules are
available at the company web site at www.datamaxmarketingsystems.com.

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 pay
in excess of $10,000 for an introductory course to this lucrative industry. The primary reason
for this is that through our strong commercial finance relationships, DataMax Marketing Systems
provides significant amounts of referral business to factors, commercial lenders, equipment leasing
companies and purchase order financing specialists. The vast majority of this business comes
from our network of brokers nationwide so we have a vested interest in your success. Our
training programs, training personnel, and our marketing support products are literally light years
ahead of our competition.

Q. Who makes a good commercial finance broker and realistically, what are my chances of
success?
A. What will ultimately determine your success is your marketing skills. Our training conferences
will provide you with all of the information and product knowledge you will need to start your
new business. Your success, however, will depend on your marketing skills. The depth of
knowledge in this most important area varies so much from person to person that it is the reason
that we developed the FactorMax Business Development System.
Stockbrokers, financial planners, insurance agents, and other service providers make excellent
commercial finance consultants and will find the alternative commercial finance industry to be
much more lucrative from the standpoints of income and accommodating from the standpoint of
ease of operation. Those that have achieved some success in those industries do so because they
have 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 and
agents. Because the ill-prepared have already been weeded out, virtually all stockbrokers and
insurance 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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QUESTIONS AND ANSWERS

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 fully
aware 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 that
involve marketing, prospecting and selling. We feel that too many home business opportunity
marketing programs simply make this career sound too easy. We would rather you be a little
better informed before you begin to spend your money. Realistically, because of the high income
potential 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 after
they begin to generate income and achieve some initial level of success, however. Our advice is
to 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 have
become 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 of DataMax
Financial Services (DMS). As an Associate, we provide a great deal of mentoring and marketing
assistance to help you along as you begin your new career. We also help you package your deals
and 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 utilize
the FactorMAX Business Development System, however. To keep your initial expenses to a
minimum, we have a special financing arrangement for the system to Associates. While the
costs of becoming an Associate with DMS are nil, there are other requirements. Most
importantly, we require you to produce business. We allow you 90 days to ramp up and you are
mentored for that 90 day period. After your ramp up period, you are required to produce a
minimum of three deals each quarter (3 month period) to remain supported by DMS. A complete
explanation of the Associates Program is available for viewing at our company web site at
www.datamaxmarketingsystems.com/associates.htm.

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-up
during normal business hours. To succeed, you must allocate some time during the week to make
follow-up calls, have someone else make those calls for you, or develop some very aggressive
direct marketing campaigns.

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QUESTIONS AND ANSWERS

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 very
attractive commission payout which is trailing. Simply put, you will likely generate a commission 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 commercial
products of factoring, purchase order finance, and asset-based lending will provide 90% of your
income in most cases.

Q. What exactly is FactorMax?

A. FactorMax is a marketing system that we developed for the factoring industry. It is designed
around a systemic approach to marketing for commercial finance clients (factoring, purchase order
finance, etc). It includes a training manual, operations manual, and the FactorMax contact
management software. Unlike off-the-shelf contact managers, it is important to realize that
FactorMax is much, much, more. The FactorMax Business Development System is the only
product 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 few
states have adopted requirements for those that deal in discount notes and mortgages, however
which 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 those
that try to enter the industry after seeing a late night infomercial soon drop out do to lack of
proper training and support. You will have some competition from banks and other finance
companies but they are generally passive...that is as a client you must walk in the door and
ask 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 two
day workshop weekends which train you in all aspects of commercial finance consulting, we also
provide a two day workshop on FactorMax operation and marketing strategies. You will need a
laptop computer for that workshop. You must also have a Microsoft Windows 2000 or XP
operating system.

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