The concept of developing Income Streams is pretty straight forward and you probably don’t need an official definition to know what this means. But, let’s still broach the subject to make certain.
Creating multiple income streams allows an individual to have multiple (and dependable) sources of cash flow coming in to your bank account periodically. Having multiple income streams means that you are in a better position and will be prepared if one source of income fails. Simply put, establishing multiple income streams means you will have something to fallback on when the inevitable occurs..
Fortunately, what’s cool about our current online age is that there seems to be an almost unlimited number of ways to make consistent extra money, whether they are passive or active. And, one of the most attractive methods of developing “real” passive opportunities in today’s internet focused world is “fintech” or products offered through finance technology.
Factoring Broker: A Business of Multiple Income Streams
So home business entrepreneurs are always in search of multiple passive income streams. Most will set up 5 or 6 business ventures with online stores and blogs to earn income. Many require complex payment systems too charge credit cards of earn fees for courses and classes. All in search of those elusive, but important, income streams. But are you aware that one business automatically creates multiple income streams for you? Income streams that can easily last 3 to 5 years once they are established? If not, you need to find out more about the business of becoming a factoring agent, broker, or consultant.
How This Works
Most home-based entrepreneurs are always in search of some new “side gig” that can just provide an additional modicum of additional monthly income to make ends meet. Most are happy with an additional #200 to $500 commissions from any given enterprise and then move on to more. The business of factoring, however, takes to the work out of those multiple searches.
Once you have established a factoring broker business, whether you work very part time as an agent or much more full time as a broker / consultant, you have actually set up a system of multiple payment streams by default. And that’s because every client that you source is likely different and also likely will use a unique finance source. For example:
Income Stream #1: Through his networking and marketing efforts, Jim, a factoring broker, receives a funding request proposal from a commercial cleaning company. The proposal is approved by ABC Factoring Company that factoring $100,000 of invoices monthly. Jim is the broker of record. Jim now receives a commission check for roughly $375 per month. That’s income stream of nearly $5,000 per year.
Income Stream #2: From a door hanger marketing campaign, Jim receives a call from a commercial painting company that specializes in paining apartment complexes. The contractor submits an application for factoring and is approved by a Constuct Co, a specialty construction factoring company. The contractor bills roughly $75,000 a month but terms of payment are 60 days. With factoring fees slightly higher, Jim’s commissions, as the broker of record, are also slightly higher, Jim begins receiving $475 on average every month or roughly close to $6,000 per year.
Income Stream #3: From a referral from a local bank lending officer Jim has met, Jim receives a referral of a manufacturer who has a very large contract for emergency steel staircases installed on selected government housing projects. Jim forwards this proposal to GovCo, a well known factor of government receivables. The proposal is approved and with invoicing to be roughly $800,000 per month. Jim is the broker of record. But there’s a bonus! In addition to factoring, this government manufacturer all requires purchase order finance to buy raw steels and other materials for manufacturing. PO Finance Co, approves the purchase order request. Jim, again, is the broker of record. The PO finance is estimated to occur every quarter at about $100,000. Jim begins receiving roughly $1,100 every month in factoring commissions and will also receive $400 every quart for the funding of the purchase order.
Four Income Streams with More to Come
So as you can see in the previous example, Jim the broker placed three different clients with four (4) different funding sources. Each one generates a separate payment stream for Jim. On average, each one of these clients and their related commission income streams are estimated to continue for 3 to 5 years. And Jim is not just vacationing. He is actively seeking out more clients representing more payment streams. He will also be financing periodic SBA loans, equipment leases, inventory purchases and more. These types of financing, however, do not create income streams. They are “one-time-payment” commissions, unlike the residual payment income streams related to factoring financings. But…who would complain with some commissions related to “points” on a traditional loan one in a while.
Get Started Earning Your First Multiple Income Streams
Are you ready to quit struggling month after month just trying to make ends meet? If so, get active in factoring and the independent business development side of the alternative commercial finance industry. Sign up for training and begin earning your fait share of the industry’s near-legendary residual, life-of-account-commissions Find out more by visiting the IACFB Academy at www.iacfb.academy.