business invoices - Posted by Tobe

Posted by David Butler on December 17, 2000 at 14:05:51:

Hello Tobe,

Nope… you got me there :wink: It is clear as a bell that you said business invoices, but for some reason, my brain insisted it said business notes ;-( hmmm… senility??? So, my mistake!

And yes… invoicing (more commonly known as “factoring”) is a huge and ever growing industry, with a lot of players… and a growing community of brokers who deal in it. Unfortunately, I am not one of them, but I am familiar with the industry enough to know that it offers some excellent opportunities.

And, not only with business invoices… you have a very large playing field that also includes consumer and medical receivables.

Perhaps the best place to start is to invest $99 in a 12 month subscription to the American Cash Flow Journal (call 407/843-2032 for more information), published by the American Cash Flow Association. Be aware that ACFA does offer several extensive courses on the related subject matter, but they are pricey.

Better to use their monthly journal as the first resource for learning more about the business, by way of the many articles included - and to use the extensive advertising to contact investors directly - many will offer at least some free information that will assist you in getting a fairly clear picture of many nuances involved.

Hope this response did actually help :wink: and best of luck!!!

David P. Butler

business invoices - Posted by Tobe

Posted by Tobe on December 13, 2000 at 24:33:23:

Has anyone had any experience brokering or buying business invoices? If so, how do you market for them and has it been successful?


Re: business invoices - Posted by David Butler

Posted by David Butler on December 14, 2000 at 12:39:27:

Hello Tobe,

Yes… and business notes can be an extremely lucrative market for you! In fact, our research indicates that in the coming year, and for at least 24 months beyond, the growth in business note transactions should be explosive (see our article, CASH FLOW 2000 - Merging Markets), at:

Couple things to keep in mind with business notes… first, there is a limited market of investors who will work with this type of paper - it is high risk, and very specialized stuff. Second, there is a ton of it available - but a very low percentage of it is marketable, because of the inherent weaknesses built into a large portion these notes when they were created. Third, the nature of the business is such that the paper takes deep discounts to move to the few investors who operate in this market segment.

Fortunately, the several investors who pick it up are usually very helpful in putting the deals together. But, for the reasons I mention above - you’ll want to learn enough about evaluating the stuff up front, and setting up your seller for the discount he’s going to be looking at, to minimize the amount of time you spend on putting those few deals to bed. In other words, you don’t want to be out there spinning your wheels on deals that have no chance of going beyond the first “kiss” :wink:

With business notes, it truly is a numbers game… move quickly in sorting the wheat from the chaff, and focus on the few “gems” you dig out, and work like heck to close them by being an accomplished “set-up” man and master due diligence collector, :slight_smile:

As to marketing for these types of notes… you might find the reply I made To Josh’s post (dated Nov-15-00) Help!! Business Note - Possible 1…, located in the middle of page 2 of our Archives at:
to be very helpful for your purposes!

Hope this helps, and Happy Hunting!

David P. Butler

Re: business invoices - Posted by Tobe

Posted by Tobe on December 16, 2000 at 22:19:40:

Mr. Butler,

Although your information was helpful, it wasn’t what I had in mind. Maybe I miscommunicated what I meant. I meant business invoices, not business notes.

When company ABC sells XYZ a product they sometimes offer terms such as money due in full in 30 (or 60 or 90) days but if you pay us within 10 days you can take a discount of 10%. I think it would be lucrative for an investor to go in and offer to pay the amount with the 10% discount and then have XYZ pay him the full amount.

Has anyone done this or maybe brokered them?