Note Brokering and Factoring

[Lynn Henley]

Is anyone doing both purchasing/brokering discounted notes and factoring?  I see note purchasing/brokering as a way to receive huge pay-outs, but they don't come in on a regular basis.  Factoring, has lower pay-outs, but the pay-days come on a monthly basis.

Thanks!

Lynn (FL)

[Don Konipol]

Three different business models

Purchasing notes at a discount requires sourcing notes, analyzing notes, negotiating price, and raising the capital to fund the purchase

Brokering notes is an intermediary function which requires sourcing notes, sourcing buyers, and connecting the two by best fit

Factoring is the purchase of receivables and requires sourcing businesses with receivables and cash flow problems, analyzing the receivables, negotiating terms, and raising capital for the purchase of receivables, and collecting on the receivables.

In actuality, factoring is the highest risk highest return.  While large profits can be made in any one deal, each business or investment program must be looked at over a long period of time, to determine return on capital, or return on time.  The competition in all three of these investments/businesses is stiff; as always knowledge, experience and capital are required.