The commercial debt resolution profession provides an excellent opportunity to create multiple income streams.
During the course of contacting prospective clients you will often encounter business owners that are either 1. considering selling or 2. interested in factoring their accounts receivable. Both situations offer the opportunity for YOU to earn substantial referral fees!
If a business owner is thinking about selling their company, you can relay this information to a business broker. Your referral fee for this simple "introduction" will typically be 10% of the business broker's fee. A small business selling for $500,000 could land you a fee of $5,000 just for putting the business owner in touch with a business broker!
Factoring is a specialized way for a company to receive immediate cash for their accounts receivable. Factoring companies will "loan" up to about 90% toward receivables for a business and then collect the money on their behalf. Their fee for this service is usually 5% and they will pay YOU 10% of their fee. If they factor $200,000 in receivables, your referral fee would be $1,000 ... and this is usually an ongoing service. You could potentially receive this referral fee month after month!
The fees you receive from your clients for negotiating settlements can provide a substantial income in this profession. And the opportunity for additional income will always be possible if you stay alert to these other situations. Keep an open mind and ALWAYS ASK for more business!
Scott F. Soape
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