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  1. #1

    Factor Looking to Trade Leads (Referral Commissions)

    Hello All,

    We are a newer factoring company located in Washington State. We are looking to build some strategic partnerships with other lenders, factors, MCAs, & ISOs in order to refer out our leads that don't fit our criteria, and in turn we would review those leads that don't fit your criteria.


    Our basic & ideal criteria is as follows:

    • No minimum time in business, startups welcome
    • Annual revenue of $300k - $5M
    • B2B, direct pay
    • Payment terms up to net 120
    • Ideal industries include: manufacturing, temporary staffing, wholesale/distribution, transportation, security, commercial services, plus many more
    • 1st position on accounts
    • Domestic clients & debtors

    Will consider:

    • Low volume, annual revenue of $100k per year if volume of invoices is also low
    • Higher volume, annual revenue of up to $12M per year
    • 2nd position with payoff agreement (up to 6 months)
    • Subcontracting depending on industry
    • Stacked UCCs, we would be happy to work with multiple secured lenders to develop a consolidation plan (by way of subordinations, payoffs, assignments, etc.)

    Our underwriting process includes:

    • Financial analysis of the prospect company
    • Background and credit check of the company and its principals
    • Review of contracts, invoices, payment terms, payment history

    What we can offer:

    • Great referral commissions for the lifetime of the account
    • No hidden fees
    • Open communication and realistic approval and funding timelines
    • Flexible terms that work with more companies and industries


    If you have any questions or want additional information on our criteria, processes, or referral commissions, please feel free to contact me directly. If you aren't sure if your deal fits our criteria, please reach out and inquire! We would love to take a look at everything to determine if we can make it work. We are a private company and are self-funded so we have the ability to mold more deals to work for us and for your client. Please feel free to email me your broker packet or more information on your company's criteria and referral program and we can begin sending leads your way as well. We look forward to working with you!
    Alyssa Akins, COO | Evergreen Funding, Inc. | alyssa@evgfunding.com | 888-344-7522, ext. 101 | www.evgfunding.com

  2. #2
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    pretty much standard referral commission for lifetime of client factoring with a lender is about 10% I have few that pay us 15%.. what is your referral commission split to referrals that makes it great?

  3. #3
    Quote Originally Posted by Sachip24 View Post
    pretty much standard referral commission for lifetime of client factoring with a lender is about 10% I have few that pay us 15%.. what is your referral commission split to referrals that makes it great?
    Hi Sachip24,

    We are at the standard 10% as well, with flexibility based on the partnership, as well as another option for those who want to provide less information. I was just differentiating that the commission earned is for the lifetime of the account rather than a "finder's fee" or similar 1-time payout. Thanks for the clarification!
    Alyssa Akins, COO | Evergreen Funding, Inc. | alyssa@evgfunding.com | 888-344-7522, ext. 101 | www.evgfunding.com

  4. #4
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    Quote Originally Posted by evgfunding View Post
    Hi Sachip24,

    We are at the standard 10% as well, with flexibility based on the partnership, as well as another option for those who want to provide less information. I was just differentiating that the commission earned is for the lifetime of the account rather than a "finder's fee" or similar 1-time payout. Thanks for the clarification!
    Hi EVGFunding- He means 15% over the life of the client not a one time payout. We pay up to 15% over the life of the client. We also follow the same on ABL instead of a one-time payout. Another happy client of ours just renewed yesterday for year 3. The referral partner is just as happy . Year one-$8mil in volume/$1.5Mil facility. Year 3-$27Mil in volume/$4Mil facility.
    Hedley Lamarr......That's Hedley

  5. #5
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    10% and 15% need clarification.
    10% standard is on the GROSS fees.
    15% for Kevin (and many other factors) is on the PROFIT SHARE.

    When you take cost of capital into effect, suddenly 15% is not as much of a big deal (I was told that it's really around the equivalent of 11% of the gross amount, but it depends on the lender), and perhaps they won't offer as large of a line as a private factor will.

    Rule of thumb is know your funders, and which box they like, and get deals funded with relationships that make sense.

  6. #6
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    Quote Originally Posted by abfunders View Post
    10% and 15% need clarification.
    10% standard is on the GROSS fees.
    15% for Kevin (and many other factors) is on the PROFIT SHARE.

    When you take cost of capital into effect, suddenly 15% is not as much of a big deal (I was told that it's really around the equivalent of 11% of the gross amount, but it depends on the lender), and perhaps they won't offer as large of a line as a private factor will.

    Rule of thumb is know your funders, and which box they like, and get deals funded with relationships that make sense.
    Micah-Some factors only pay 10% of net or a one time upfront fee. We pay up to 15% of net spread. Since our cost is next to nothing the net spread is better than what some consider gross. Keep in mind, some that claim they pay on gross spread also don't tell you that they are really paying net or pull back some form of 'house fees'.
    We have been known to pay over our standard rates for the right partners and the right prospect. Case in point the deal I mentioned above.... The referral partner on that deal had never done a factoring deal before, did little to no work upfront, was open and honest about his relationship with the Prospect, was on every call to learn more about how we approach deal and work with clients, and we gladly paid that person over the norm. The referral partner has done several deals with us since and referred us to other referral partners.
    Hedley Lamarr......That's Hedley

  7. #7
    Senior Member Reputation points: 337045
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    Quote Originally Posted by kevinhenry0527 View Post
    Micah-Some factors only pay 10% of net or a one time upfront fee. We pay up to 15% of net spread. Since our cost is next to nothing the net spread is better than what some consider gross. Keep in mind, some that claim they pay on gross spread also don't tell you that they are really paying net or pull back some form of 'house fees'.
    We have been known to pay over our standard rates for the right partners and the right prospect. Case in point the deal I mentioned above.... The referral partner on that deal had never done a factoring deal before, did little to no work upfront, was open and honest about his relationship with the Prospect, was on every call to learn more about how we approach deal and work with clients, and we gladly paid that person over the norm. The referral partner has done several deals with us since and referred us to other referral partners.
    Micah,

    Here's an example of the difference. Let's assume it's a $4mil facility for a $25Mil revenue Staffing Company. A facility priced at 8.85% yield would have a gross revenue of $194,270. 10% of the gross would be $19,427. 15% of the net with my cost of funds is $28,031.
    Hedley Lamarr......That's Hedley

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