Accounts receivable factoring has become a big business for small businesses. Although it has always been available to large businesses for a long time just since the 1990's it has become available to small businesses. Nowadays there are many funding companies that are available for making factoring deals and many companies that need factoring to help them succeed. So there is the problem that funding companies have and it is finding the companies that need funding. That is where the "Cash Flow Consultant" (CFC) comes in.
 That's why the necessity of a "middle man" in this business has appeared. So the CFC is that "middle man" or broker. The task of this person is to search for prospects for the funding companies. When the CFC finds a prospect they ask certain questions and get certain information from the client and passes that information on to a funding company. The Cash Flow Consultant receives a fee or commission for their part in the transaction only if the client and funding company come to an agreement on the terms of the factoring, of course. No doubt there are many variables involved as to the cost of the factoring to the client and the percentage received by the CFC. All these variables vary from funder to funder.
But the process of finding prospects or clients is not easy. The CFC has to do a lot of work in order to find the clients for these funding companies. He may do it in many different ways such as direct mail, networking, calling, internet, advertising, just to name a few. Be prepared to work hard if you are thinking about this career. It is very difficult to find clients, and even if you do it, they do not always qualify.
A receivable factoring deal usually continues over a period of time even if it is finished. The CFC will be able to receive the commission for as long as the companies continue to factor their monthly receivables. This is almost like a residual type of income. They will receive a monthly income for as long as the client continues to factor their receivables instead of receiving a one time fee for the CFC's work. Thus, if the client is factoring a large amount of receivables, the CFC will enjoy a good income for that period of time.
Factoring is just one of the many avenues in the cash flow business, that's why there is a lot to learn about receivables factoring should you become involved as a CFC. There are many useful niches in the industry. So, if you have a great desire to make this career, be ready to do a lot of research and prepare yourself for a lot of learning and hard work.
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