Dear nggd -
Thanks for submitting your question to our forum. I apologize for
your having to contend with the barrage of criticism you have received
- I think it's a customer's right to decide whether the service
rendered was satisfactory or not, and I do not think discussions such
as the one below should be entertained by this channel.
But - to your question!
The "Cash Flow Industry" is not really as new as some would have you
believe - "factoring," which is the business of buying other
companies' accounts receivables, has been around for a long long time.
Factoring - see for example -
http://www.hamiltongroup.net/factor.shtml
Accounts Receivables -
http://www.clearlybusiness.com/insights/insights_help_faq_accounts.jsp;jsessionid=KF04VJS22EZJUCWYCEKCFEQ?_requestid=48447
Traditionally, the cash flow industry has been a
"Business-to-Business" industry - one firm, typically a speculative
high-risk type investment firm, would buy out another firm's accounts
receivables - where the selling firm was typically a manufacturer or
service provider facing a cash crunch.
Over the past decade, however, "cash flow" as a business has moved
into the realm of "Business-to-Consumer" - businesses now specialize
in buying out future income streams of individuals - a prevalent
example is lottery winnings. Suppose you won $1 million payable to
you over 20 years - I would come in and offer to pay you, say, $350k
NOW for the right to receive that income stream in the future. The
actual value of the stream may be, say, $500k (I didn't calculate this
out, just throwing numbers out there as an example) - so I get a nifty
margin for giving you the cash NOW.
Here's a good description of this business -
http://www.commercemarketplace.com/shops/afs/
How do you get involved?
Well, if you have significant capital and can start buying out such
income streams, you could set up a business and begin advertising to
that effect; or, you could start a factoring business and initiate
relationships with businesses that may have significant cash needs or
are otherwise distressed - bankers are a good source of info on such
businesses, so you may want to try and initiate some relationships
with local banks' loan officers etc.
There seem to be a variety of companies out there offering to get you
in to this business in one way or another - which may actually be what
had prompted your question to begin with. Examples -
http://www.americancashflow.com/
http://www.receivables-factoring.com/home.php
http://www.southwestlibertycapital.com/page2.html
I would check such businesses out carefully before signing up with
them - I'm sure many are schemes of various types...
I hope this response satisfies your curiosity concerning the cash flow
industry - please let me know if you have additional clarifications
concerning this request.
thanks,
ragingacademic-ga
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