[Iscibibi153]

My question pretty much sums it up..

[getitfunded]

It depends; how many lines of credit do you fund?

[Kevin Henry-Seacoast]

My question pretty much sums it up..

It depends:
-How large of a facility?
-What is the structure?
-Who is the lender?
-What is their cost of capital?
-What is the average life of a client with the lender?

Answers:
-Some can provide factoring and asset based lines of credit from as little as $250K to well over $40Mil.
-Some will offer the same commission structure on their ABL deals as their factoring deals.
-Some will offer up to 15% of the net spread over the life of the client.
-Some have an average lifespan of a client over 3 years.
-Some of a very low cost of capital.

Finding a lender/factor that can be competitive in the market, can offer other services to the client, and has sticky relationships with clients.....makes for a very lucrative and long term source of commissions. Win clients...not deals!

Example: 4 years ago I provided an ABL facility for a company that was introduced by a broker fro this forum. He was originally going to get them a $100K advance and make a quick $10K. The broker made 3X that the first year. The client is now on year 5 and has grown significantly. I have won other clients with this broker because the happy customer referred friends to him and he in turn called me.

Best,

KH