July 8, 2024 • 36 mins
Unlock the secrets of transforming your business's financial landscape with Brad Garny, a maestro in receivable factoring. Our enlightening chat helps to navigate the nuances of leveraging your company's outstanding invoices for immediate capital, a game-changer for maintaining a cash flow. Brad demystifies the process, showcasing the flexibility that factoring offers—no long-term contracts, no minimum revenue constraints, just the raw potential to grow your business with the assets you already have. It's a power move for any savvy entrepreneur looking to give their venture a financial edge.
The world of quick funding is evolving, and we're here to guide you through this fast-paced territory. With insights from TDJ Equity Funding, we reveal how technology has simplified access to immediate financial relief. The episode dissects how the creditworthiness of your client's customers can be the key to unlocking funds, offering a lifeline to those handling government contracts or similar agreements. This strategic approach to finance is not just for the big players—small businesses and startups can also tap into this resource to propel themselves forward in the market.
Prepare to be inspired by the possibilities as we share real-world examples of businesses that have soared by embracing receivable factoring. Our conversation extends an invitation to the Funders Insiders community, where the journey towards financial mastery continues. From understanding various factoring options to preparing for unexpected opportunities, we equip you with the knowledge to skirt the common pitfalls of undercapitalization. Please tune in, and let's elevate your business savvy to new heights with the strategic use of your receivables.
A loan brokerage firm that acquires funding for business owners and real estate investors.
Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.
If you need assistance in obtaining funding, email us at podcast@tdjequityfundinginsiders.net. Tell what the scope of funding is needed and the amount. A broker will contact you to discuss your funding needs. And remember, at TDJ Equity Funding, we do not force your funding needs into a lender's box but find a lender's box that fits you!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Intro (00:13):
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
Jacquelyn Jackson (00:47):
Welcome to our show today.
Thank you all for coming in andwe are very excited for having
you today.
Today we're going to talk aboutsomething that's different than
what we've talked to before.
As a long broker, you all knowthat I deal with different
lenders and I also deal withdifferent types of business.
What we've found out that onething that has been a problem is
that people are not aware ofwhat's available for them in
(01:10):
business, basically.
So what we want to do with ourpodcast and this show is one of
the main ones is to bring youanother type of lending that's
not well known.
A lot of people don't know notbecause it's not good, but it's
just the fact is, you only hearwhat you hear.
That's it.
So we're coming to bring youthe top types of lenders that's
out there that business areusing, and one of them that we
(01:30):
have and that's our guest that'scome today is dealing with what
we call.
We call it receivable factoring, but you all may know it as
like financing your invoices oryour purchase orders.
So that's basically what thisis about.
This topic, this show that we'retalking about today, is dealing
with invoices as far as you areselling your invoices, how that
(01:52):
works and to give you some kindof idea.
So that's what we have going ontoday, and so the guest that we
have today is Mr Brad Gurney.
Now let me tell you about Brad.
Brad has been around for a longtime, but I'm saying that with
education and knowledge.
I've spoken with Brad on otheroccasions and he knows how the
(02:13):
invoicing business should go andhave gone.
He has over 40 years experience, so guess what that means that
we have in today.
We're going to get fed today byMr Brad about the invoicing
field of force, you sellingthose and how you get funded
with those, how you get moneyfrom those.
So that's what we play no day.
So what I want to do, if youall help me, to welcome our
(02:34):
guest today is Brad Garny.
We want to welcome you to ourshow first of all, Brad Gurney.
Brad Gurney (02:39):
Thank you, jackie.
Thank you for inviting me and Ithank you for how you're
helping the business communityto learn about different options
in the lending world and tomake what can be a complicated,
hard to understand process easyto understand, and you and you
(03:06):
help these companies to getfunded.
Jacquelyn Jackson (03:09):
Exactly, and you're right.
And that leads into the quickquestion I got.
First of all, I'd say you aredefinitely welcome to be here,
but knowing what you know andyou just talked about helping
businesses and you've done a waylonger than that I have for
sure.
So, in the process of helpingthem, before we go into, let's
talk about first of all, thefunding from when it was to what
(03:29):
it is now.
What are you seeing?
First of all, let's talk onthat at the same time and,
excuse me, explain a little bitmore about the invoicing and how
that works in that that era aswell, if you could, brad.
Outro (03:40):
Garny.
Brad Gurney (03:40):
So how invoice or receivable factoring works is
one of the simpler forms offinancing.
My clients will provide theirproduct or service to their
customer, so it's just anotherday at the office.
(04:03):
Right then is when they needthe money.
They sell me that invoice.
So if they provided theirproduct to Texas Instruments?
Outro (04:19):
Brad Garny.
Brad Gurney (04:20):
Texas Instruments said thanks for the box of parts
.
We'll pay you in 45 days.
My client needs money before 45days.
They got to buy inventory, theygot to make payroll.
They sell me that invoice.
I'm going to give them 90 95cents on the dollar the day they
(04:40):
sell it to me, brad Garny, I'm.
I'm then going to wait forTexas Instruments to pay us.
When we get paid, we'll takethe 5 10 percent that we held
back, take our fee out of thatand then return the difference.
(05:01):
But our clients getting plentyof money up front on day one so
they can do what they need to do, pay all their operating costs
Right, stay current and getanother job out the door.
So it's a straightforward justselling an invoice.
My clients sell the invoicesthey need to when they need to.
So we're not, they're not undera contract to sell all their
(05:24):
invoices or that they have tomake.
They have to generate so muchmoney for me revenue a year or
something.
I want my clients to grow andif they grow they generally need
to factor more.
So we're there to help themgrow.
Okay, and now?
(05:44):
And that part hasn't changed inour last 45 years.
What has changed is we startedour business with a check ledger
manual, manual posting cards,rotary telephone, telephone
(06:05):
telephone tomatoes.
Tomato soup cans right, yes,I'm still, I'm still qualified
with smoke signals.
But these ledger cards, we weresupposed to add them up and they
were supposed to balanceEverything.
Yeah, I enjoyed the marketingand sales part, but the the
(06:26):
account oh, I should have paidattention in accounting, so so,
thank you.
Just a fax machine was a bigdeal back then, right, and now
of course we're.
We're working with our, withour software provider, to make
(06:46):
sure our client portal is justas intuitive as your Apple phone
, right and user friendly andthat's why I learned about.
Jacquelyn Jackson (06:58):
Look blockchain dollars technology
out.
Here I get.
We have to know all that stuff.
Brad Gurney (07:03):
So, and we got our, so our software developer, they
, they, they have that, thatexpertise.
And as we bring a new client onboard, we say you're going to
love our portal, youraccountant's going to love the
portal, you'll get all yourinformation here.
Let me train you.
Oh, we were already on theportal.
(07:24):
We don't need to waste our timegetting trained.
So it's, it is intuitive.
Jacquelyn Jackson (07:28):
So it's a lot more easier, as what you're
saying, to actually get yourfunding.
Now I think let's talk aboutthe time.
Is it?
Is it quicker, is it longer?
Brad Gurney (07:36):
Probably quicker in that our client.
Well, when we started and I'veused Texas instruments thank God
for them because 40 years agowe opened an office two blocks
from Texas instruments, atCentral and LBJ, and we were
wanted to be close to thembecause all our clients were
(07:57):
dropping off parts in printingand supplying warehouse people
and they had to physically bringpaperwork to my office.
Jacquelyn Jackson (08:08):
That's why you had to be closer to your
client.
Brad Gurney (08:11):
And so they were dropping off parts.
Then they'd come to our office,get a cup of coffee, get a
donut, would make phone calls,would get everything situated
and then, and then, maybe in aday or two, we're be able to cut
a check.
Jacquelyn Jackson (08:24):
Wow.
Brad Gurney (08:25):
And so now my client downloads their pay.
Their pay downloads theirinformation.
Jacquelyn Jackson (08:33):
There's no you don't even have to see them
to go in and just initially putyour first preapplication.
Brad Gurney (08:36):
Yeah, and it's yeah , and everything's streamed,
downloaded, and I look and I see, oh, that's there, that's there
, that's great, let's buy, let'sbuy that invoice, let's wire
the money and and that's it.
Jacquelyn Jackson (08:49):
Yeah, and that's the hot.
What's the timeframe on that?
Probably what.
So turn around town, probablylike what.
Brad Gurney (08:55):
It can be a matter of hours.
What hours it?
Jacquelyn Jackson (08:57):
could be sure and see that's different than
what we have heard of long timeago how long stuff take and
there are some, and I want ourlisteners now listen to what
he's saying.
He's saying you may be hours ormaybe days, but compared to a
term loan and a bank loan, it'sa lot shorter.
Oh is what we said timeline.
So see, that's an option, guys.
Remember we talk options, notalternatives, but options that
(09:19):
you have out here that you'renot aware.
Brad Gurney (09:21):
And as as an option we're.
One of our advantages is we canmove very quickly.
Okay, my partner and I willmove very quickly.
Okay, people aren't contactingus because they might need money
next month to.
They are in a bind right now.
They have an opportunity rightnow.
(09:43):
They need cash Right Now.
That that's why they're callingme.
We understand that.
Okay, and if I take care, if Iam a solution to their problem,
I'm going to fund them quickly,right?
Jacquelyn Jackson (09:58):
Quickly Now this is what I want to say from
the loan broker side, so youguys can know what he's saying.
That one thing that sticks out,I think, with you all is that
you want to know, okay, whatqualifies me to even get this
loan.
So we do want to mention thequalification.
If I'm right and Brad you cancorrect me it's based on their
vendor the one that invoicetheir customer that they're
(10:19):
sending into you.
So let's talk on that.
So tell me what it had.
Brad Gurney (10:22):
Yeah, so as I buy that invoice, I'm not expecting
my client to pay me back.
Okay, they provided thatproduct, that service, to their
customer.
Their customer is going to paythat invoice, right, so I run
credit.
So it's a customer who's goingto pay me, so I'll run credit
(10:42):
reports on their customer.
Are they billing TI?
Are they billing the schooldistrict?
Are they billing a hospital?
Are they billing the city ofDallas?
So if that customer is creditworthy, that's what I'm looking
(11:03):
for and if my client was billinga commercial moving company
today, it was a $6,000 bill.
That commercial moving companyhas to have a credit report
where they've paid $6,000 billsbefore right.
Jacquelyn Jackson (11:22):
Right.
Brad Gurney (11:24):
Now I wouldn't buy 6 billion to that company, but
my client's doing $6,000.
It's a perfect fit, Right foryou.
Jacquelyn Jackson (11:32):
And I like that because that's what we need
, to see what the options are,because also with you guys, as
good and tell me, correct me ifI'm wrong.
What about, like, safe againstthe instant contracts, if a
person have a contract with thegovernment?
Brad Gurney (11:45):
Yeah, if a contract is going to work the same way,
okay, and that factors, bydefinition, are buying the
invoice, they're buying thebilling for something that's
been delivered, something that'sthat is, the service was
(12:06):
provided, okay.
So if you have the contract tomow up and down the highway, I
can't help you buy tractors, butif you can mow for one week,
okay and build a highway for$10,000 worth of mowing got you.
(12:31):
Then you.
Then you don't have to wait the3040 days, 50 days for the
government to pay.
Jacquelyn Jackson (12:38):
Right.
So basically we're saying againpeople an option.
A lot of folks are, some peopleare trying to get into the
contractual business with thegovernment.
You know we get a lot of that.
Our women are trying to,minorities are.
We get that.
But what are you doing to getthat contract?
Because you need money, becausethey're not paying you
necessarily up front.
That's what you have to realizewhen you get a contract Some.
Most time you're not paid anymoney up front.
(12:59):
No, you're paid at the end Right, and that's where you come in.
Yeah, okay.
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Outro (14:00):
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with clear, actionable roadmapsto achieve your business goals.
Our team of seasonedstrategists provides expert
guidance, ensuring you makeinformed decisions with clarity
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We develop customized solutionsthat align with your unique
(14:21):
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Connect with us today andharness the power of strategic
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Jacquelyn Jackson (14:31):
Now let me ask you about the company that
you're getting the invoice from.
But that's actually what isyour customer when they be their
customer.
Brad Gurney (14:40):
So we call them our client is who.
I'm going to fund.
Jacquelyn Jackson (14:43):
The business owner.
Brad Gurney (14:44):
Yes, the business owner is my client and I buy the
invoice to their customer.
And then what's the thing we'retalking about?
So my client and a lot of myclients are going to be in the
startup phase.
And then also we've had clientsas entrepreneurs.
You run into an entrepreneurwho's put too much money in
(15:05):
their business maybe their lastbusiness didn't work out so well
, and so the entrepreneur has arough credit report.
Okay, okay, that's okay for me.
See, that's okay for me.
We're not focused on theirpersonal credit report, their
personal credit score.
I'm not going to tell you howlow I go, because nobody will
(15:26):
believe me.
Jacquelyn Jackson (15:27):
Right.
Brad Gurney (15:27):
Because if they're providing a window washing
service to the Federal Reservebuilding on Pearl Street, I know
the Federal Reserve can justprint up money, right?
I guess we're not supposed tostart down that route.
Jacquelyn Jackson (15:48):
We'll do that for the next one.
Brad Gurney (15:51):
Okay.
So my client, they might havehad something.
Their credit score might bevery low.
They're going to get paid bythe Federal Reserve.
They've cleaned the windowsRight, so that's a great
situation.
Jacquelyn Jackson (16:08):
That's what it is.
So now let me show you what wejust incited to.
You can have a business.
Your credit may not be as good,but you have a lot of great
client invoice clients is whatyou have.
Now you have anotheropportunity to get some type of
money because you can sell themand therefore you can get that
money to continue your business.
Brad Gurney (16:28):
Happiness is positive cash flow, Jackie.
Jacquelyn Jackson (16:31):
Exactly, and that's how that works.
So that's what we're going totalk on.
We got more stuff that I'mgoing to go through with this.
I just want to kind of, at thispoint, make a comment and note
to you all of how important itis for you, as business owners,
to learn your options, becausewhen you are slammed in that one
situation or you believe yourbankers are the only way you can
get money, it locks you in andit doesn't free you up.
(16:53):
And then, just like I mean itwas a saying that I had heard
from a guy that said you knowyou have to free yourself, you
know, from certain things thatstop you from growing, and lack
of knowledge is one.
Another one is free yourselfwithout actually freeing
yourself.
But you should notice, when thetime you actually imprison
(17:15):
yourself, that you can see youimprisoning yourself and lack of
knowledge and knowing what elseis out.
There is definitely what'shappening with business owners.
That's why we're here, that'swhy he's here, because now you
now have an opportunity to getthese, when you get these
contracts, because, if they can,they can still just submit it
to us, right, and you can lookand let us know how much you can
(17:36):
do of it, right.
Yes, yes right Because.
I know you said well, I'm notdoing all of it, but we can do.
Brad Gurney (17:40):
Well, yeah, and we'll work with our clients and
as we get credit information inon their customer, we keep our
client informed.
Hey, macy's is showing a lot ofstruggling signs.
You got that shipment ofdresses.
Maybe you can ship them to Rossstress for less instead of
(18:04):
Macy's Right, because who wantsto?
Jacquelyn Jackson (18:09):
ship out those dresses, right?
Brad Gurney (18:11):
not knowing if you're going to get paid.
Jacquelyn Jackson (18:13):
Okay, so you said you kind of stay on top of
monitoring what's going on withthe vendors as well, and that's
why now, let's, let's understandNow, mr Bright is actually
saying that it's a certaincaliber that he's only going to
work with.
I do have other factors, like,say, there's other factors out
there Like we talked aboutconstruction.
Brad Gurney (18:30):
There's factors who specialize in that, so they
need to know that.
Jacquelyn Jackson (18:34):
So if do you know the different type of okay,
you name some different typesof fact, like I know
construction, because you and Italked about it.
I asked you about it.
Brad Gurney (18:42):
So the classic factoring is the category of my
company is going to fall in,where we're providing our
service to the staffingcompanies and manufacturers,
service companies, oil fieldservice, the other two major
(19:03):
categories of factors one'sgoing to be healthcare factors,
where a clinic, a hospital isbilling insurance, medicare,
medicaid, gotcha.
That of course is going to bevery specialized billing.
Jacquelyn Jackson (19:18):
Yeah, understand.
Brad Gurney (19:19):
And then construction factoring Is
another, is the other.
There's just a level ofconstruction laws out there.
There's a level of laws outthere about when you can bill,
when a payment has to be made,if a when a late payment can be
bonded, and and If you're goingto get into that kind of
(19:42):
factoring, you really have tospecialize in that, because it's
more detailing, you're right.
Yeah.
Jacquelyn Jackson (19:48):
I mentioned contract.
I noted from having experiencewith working with them is you're
right because you got that umpavement, that contract, that
subcontract and all that.
Brad Gurney (19:56):
Well, and then subcontractors there's, there's
laws about them being paid,there's lots about inventory
being paid and the supply.
So yeah, then you especiallyspecialized.
Jacquelyn Jackson (20:05):
Okay, so that's good.
So we're basically saying thethree types of categories you're
talking about that that'smajorly you know about is the I
guess the at me and pretty muchfactor in administration, like
you said, sales, retail, allthat, that retail type, right,
if we want to call that.
And then you have the healthcare and then we have the
construction.
Brad Gurney (20:23):
Is that right?
I wish you would know, so I'llcall it.
I'll call it the.
I'll call it classic factoring,traditional factoring.
Okay, it is it in the 1950s,1960s in America?
America had a lot of furnituremanufacturers.
(20:45):
America had a lot of carpet,carpeting manufacturers and
those industries were Allfactoring, all the all the
little furniture shop, bigfurniture and so those in.
So that really was a.
Where factoring is a Is goingback to the Mayflower.
(21:11):
There there was factors thathelped finance that, the
Mayflower.
So it's an old, it's a very oldform of financing but it really
grew in the 1950s, 1960s and inChicago, new York, to Finances
right these industries.
Jacquelyn Jackson (21:30):
So let me ask you this, since you you said
it's because I can see it was alot going on.
Now it's not as much of itgoing on now, you think always
grown is wrong.
Brad Gurney (21:39):
That's what I'm saying it's so those industry
yes.
So there's probably not as manyfurniture manufacturers in
America but, there's Still allsorts of lots of manufacturing.
manufacturing is coming back toAmerica.
We're getting a chance to workwith some of those companies.
Staffing there is a Huge partof our economy and that includes
(22:07):
it could be healthcare staffing, warehouse staffing, it
staffing.
The outsourcing Companies willuse outsourcing to hire
receptionist, to hire People towork on a project for six months
and then they know thatproject's gonna wind down so
(22:29):
they outsource it.
Those are all companies thathave a just got a profitable
contract and they've got fivepeople who can go work for
Amazon, but now they gotta makepayroll and Amazon's not gonna
(22:51):
pay them for 45 days.
Jacquelyn Jackson (22:53):
I see that you can step in and help them.
Brad Gurney (22:56):
So it's a I forget how many billions, Just a huge
number that was factored inAmerica last year.
Jacquelyn Jackson (23:05):
Wow.
So nothing has changed on factand it's just being aware that
it's available and matching upthe industry with the client the
customer right, yes, is what weneed to do to match that up.
But see, that gives us ourbusiness almost another way of
getting money, and that's why weinclude that in our stacks of
what we do.
So we're found out that.
(23:25):
It is wonderful because, likeyou said, it's not based on the
credit as much.
But it's like some clients,even though they credit is great
, they still can't walk awaywith half a million dollar loan
Just uncollaborized.
So they have.
We have used you guys becauseyou came in really good at that
point to work Factoring work.
Wonderful for you.
Brad Gurney (23:45):
And as our economy goes through cycles, go through
changes.
With today's economy, the banksas they some banks had
challenges last year, the banksare at this point going to be
more cautious with theircommercial lending.
Jacquelyn Jackson (24:01):
They are, they are.
Brad Gurney (24:02):
They're going to be more cautious If you walk in
with accounts receivable, maybethree, four years ago, maybe the
bank might have had an appetite.
Right now they're going to bemore cautious.
The interest rates are higher,the banks are cautious and yet
the economy's strong and a lotof startups are getting these
(24:26):
new contracts Right.
They are how are they going tofunction Exactly?
Jacquelyn Jackson (24:29):
exactly, and that's why we wanted to have you
on to actually talk about thefactoring or the invoice buy-in,
as you said invoice buy-in soour clients, our customers,
listeners, can know what's theoption and what is out there,
because we're talking to justabout one of many, and that's
what happens with us.
When we're in business, we onlyknow about one or two things,
(24:51):
and so you have to understand atsome point.
Lack of knowledge will affectyour business.
So we're trying to involve andhave people here that can talk
about all the different options.
This is wonderful for a lot ofpeople that's actually looking
at doing contracts for thegovernment, cause I actually
have some people that come inand say I want to start my own
company.
You know the first thing.
We ask them okay, well, howmuch money you have to get
(25:12):
started?
And we say that because we havea business development side as
well.
So when they come talking aboutmoney, we have to ask certain
questions and what we realize isthat people don't, business
owners don't realize all theoptions they have.
And factoring receivablefactoring is a wonderful option
for people, for business owners,to utilize.
So I guess as best as reach out, find out what all can be done
(25:36):
and how we would actually do itright.
What are the extensions youhave?
Brad Gurney (25:43):
So, of course, working with you, okay, of
course.
And as we talk to a prospect onthe phone, we're finding out
who their customers are, ofcourse, what business they have.
Are they a drywall contractoror are they a security guard
(26:06):
company?
Right, so I want to make sureit's an industry I'm comfortable
with.
And then, how much are youbilling out?
I'm billing out 2,000 a month.
You know I know a factor wholoves smaller volumes, right.
Well, I'm billing out 20million a month.
You know I know a factor wholikes bigger volumes, right.
So, either way, yeah, so Iguess I'm.
Am I Goldilocks?
(26:28):
Is she the one who gets the bed?
Just right?
Yeah, yeah.
So you see, it's been a longtime since I've read the stories
.
Right you and me, so yes, soyeah, so we will work with the
prospect and try to qualify themvery quickly that that's
something we're interested in.
(26:48):
And then if, oh, you got a goodfactoring deal but here's a
company that would fit yourneeds better, be happy to give
them that referral, because wehave a five-star Google rate and
we've been top rated becauseover our 45 years we've learned
(27:10):
let's stick to what we're goodat.
Jacquelyn Jackson (27:12):
Right, right, and that's what you're good at.
And if it's?
to this too much that no, andthat's what makes you guys a
perfect fit for certainbusinesses.
So, listeners, if your businessis based on invoices you have a
lot of invoices that you getpaid off of, okay, so you have
businesses that you get paid offof then you want to actually
(27:35):
look at factoring.
Also, if you have a biggervendor, client or client,
because we call them vendors butif you have a vendor that is
big enough for money wise, thatcredit worthy, is really good.
I mean, you really want toconsider factoring that invoice.
And I know sometimes we maythink well, like Texas
Instrument, for we can, we can.
(27:57):
You know we're gonna pay, soI'm just gonna wait.
But let me tell you whathappens in business.
That's fine if it's a personalthing, but when you in business
payroll comes up, problems comeup, mechanical.
Brad Gurney (28:10):
Problems, take money.
Jacquelyn Jackson (28:11):
Problems take money.
When you start talking aboutactually business and you look
at the options, the one thingabout business owners try to do
is think, oh, I can do it or Idon't need it.
I need you out to really thinkwhy would you go through that
when all you have to do is reachout and contact someone that
can show you what's availablefor you?
You either can take it or youdon't, but at least you'll know
(28:34):
you have options, have theoption.
Brad Gurney (28:36):
And again, we don't require our clients to factor
all their invoices or to factorany of their invoices.
If we had a company that wasdelivering, manufacturing and
delivering patio furniture toHome Depot and he thought, okay,
(28:58):
I'm gonna get you in place, Iwant you to get me qualified,
I'll, let's get everything, allthe paperwork done, let's get it
.
I don't think I'm gonna needyou for six months, maybe a year
.
But he had the foresight toknow that Home Depot could turn
that dial just a little bit andhe would be snowed under.
Jacquelyn Jackson (29:21):
Oh true, oh my goodness, that is so true.
So you need to, and you-.
Brad Gurney (29:26):
And so he had the foresight, and so good for him.
Uh, uh, and, and then, andwithin a month, he came to us
and said I need the money.
Let's uh, we're, we're inbusiness.
It's okay, I'll buy you lunchfor Admus.
Jacquelyn Jackson (29:43):
I know I'll buy lunch, but and see, and
that's what we're doing we'retrying to teach people in our
courses that that you need tohave yourself set up for the
money before you need the money.
Brad Gurney (29:52):
Jackie, it's so much easier to get this in place
before you need it.
It's so much easier to qualifyyes Before you need it.
Before you've taken your lastpenny out of your IRA, buried in
your business, and it's gone.
Now that is true.
Jacquelyn Jackson (30:11):
I, we, let's stop.
I want to emphasize on that.
I've had it happen so manytimes.
When you reach out to us as aloan broker, or you reach out to
Brad and them, by the time youreach out to them, you've either
ate up your credit, like yousaid, or you've taken everything
out of your retirement, all ofyour savings, you've used all
that, and now you come lookingfor us.
(30:32):
Come before that time.
That's what you, when you havethat money there, then come with
us, we, we understand.
Brad Gurney (30:40):
This is my company.
I've put my money in my company, so I understand that you're
going to fund your baby, but Icould only put so much of my
money in.
Jacquelyn Jackson (30:51):
We had to get other resources, so it's just
right.
Brad Gurney (30:54):
And and I'm glad that we're explaining this
option- yes, I am, we need tohave it.
Jacquelyn Jackson (31:03):
So I do want you all.
Anything was not before, but Iwant anything you want to say to
our listeners to let them, orany call or action you want them
to do at this point.
Brad Gurney (31:14):
I love how you've explained that we're focused on
the credit strength of thevendor, the customer, and the
flexibility we try to offer thatwe do offer our clients so that
we're there to help them grow.
(31:36):
We do get clients who have toput out a fire.
They're behind on on payroll,they're behind on, yeah, and you
can't be there very long, butthat's the business world and
things happen.
So if it's a strong situation,if we can get our hands around
it, then, let's, let's get thefire out and let's go forward.
(32:05):
It's that some people have alsosaid well, gee, factory is
expensive.
Well, what's the value offactory?
We did sign up for client yearsago and he was really.
He was a high paid softwareengineer.
He was just billing a companyfor his hours work.
(32:27):
I think we were factoring hispayroll.
I kept asking him about it.
He goes no, no, I want to dothis.
He never grew.
He never hired another per.
He never grew.
It was like at the end of theyear I was like why are you
giving me a fee and you're not?
Um, I don't know what his thevalue was to him, but we signed
(32:50):
up a machine shop out in Kaufman, texas.
He was billing severaldifferent oil companies about
50,000 a month and a littlewhatever they they use on the
pump checks.
When he sold his company he wasbilling out a little over 3
million a month Now providinghardware to the hospitality
(33:19):
industry, to hotels, and to getwork from 50,000 a month to 3
million a month.
It took a lot of money and hemade a lot of money.
He paid us an expense but hewouldn't have grown and he
wouldn't have made all the allthe extra money.
(33:40):
So it takes money to make money.
Jacquelyn Jackson (33:44):
Right and we have to understand that this is
not person's business.
You have to understand that.
That's why it's so important tobe aware of receivable factor
in your profile of lending.
Slash financing money, workingcapital opportunities, working
cap.
You have to keep the factoring.
(34:05):
I believe factoring is one ofthe major ones we like and we
like to use for certain clientsand I think, like I said, people
need to be aware that it's outhere and that it's available and
everything for you as well.
Okay, so we're going to getready to wrap this up, I do want
to thank you and I appreciateyou so much for being here.
Brad Gurney (34:23):
Jackie, you made this very enjoyable and I've
learned better how to explainfactoring.
Jacquelyn Jackson (34:33):
Thank you for my little comment, thank you
for our conversations.
I appreciate you and I want tothank our listeners.
I appreciate you all so much,the feedback we're getting, the
comments we're getting, and Ijust thank you.
So we didn't let us know whatwe're doing and our lenders
coming out professional lendersthey actually come out there in
the industry when I sayprofessional, I mean they're
professionals in the industry,they're in the financing
(34:54):
industry and they're coming outand they're giving you guys
their insight and that knowledgeand I appreciate you all
thanking us and you're glad thatwe have there.
If you want to be aware ofeverything we got going on
listeners for as our podcast,you can listen to us on all the
platforms all over the majorplatforms.
You're on those, so you canlisten to us on those as well.
(35:15):
As we would love for you guysto be part of our funders
insiders community.
We do have that where you cango sign up at tdjequityllcnet
backslashpodcast.
We want you to sign up becausefrom there we're actually
educating people more throughour mailing of also giving you
some PDFs.
We give you some documents.
(35:36):
We try to give you guys a lotof stuff that can kind of guide
you on the lending road, of theproper way, of how you should be
set up to be fundable.
So again, I want to thank youguys for being part of our show
and until next time, take careand thank you.
Intro (35:53):
We hope you enjoyed this episode of TDJ Equity Funding
Insiders podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet, forward slash
podcast or email us at podcastat tdjequityfundinginsidersnet.
Until next time, take care.
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
Jacquelyn Jackson (00:47):
Welcome to our show today.
Thank you all for coming in andwe are very excited for having
you today.
Today we're going to talk aboutsomething that's different than
what we've talked to before.
As a long broker, you all knowthat I deal with different
lenders and I also deal withdifferent types of business.
What we've found out that onething that has been a problem is
that people are not aware ofwhat's available for them in
(01:10):
business, basically.
So what we want to do with ourpodcast and this show is one of
the main ones is to bring youanother type of lending that's
not well known.
A lot of people don't know notbecause it's not good, but it's
just the fact is, you only hearwhat you hear.
That's it.
So we're coming to bring youthe top types of lenders that's
out there that business areusing, and one of them that we
(01:30):
have and that's our guest that'scome today is dealing with what
we call.
We call it receivable factoring, but you all may know it as
like financing your invoices oryour purchase orders.
So that's basically what thisis about.
This topic, this show that we'retalking about today, is dealing
with invoices as far as you areselling your invoices, how that
(01:52):
works and to give you some kindof idea.
So that's what we have going ontoday, and so the guest that we
have today is Mr Brad Gurney.
Now let me tell you about Brad.
Brad has been around for a longtime, but I'm saying that with
education and knowledge.
I've spoken with Brad on otheroccasions and he knows how the
(02:13):
invoicing business should go andhave gone.
He has over 40 years experience, so guess what that means that
we have in today.
We're going to get fed today byMr Brad about the invoicing
field of force, you sellingthose and how you get funded
with those, how you get moneyfrom those.
So that's what we play no day.
So what I want to do, if youall help me, to welcome our
(02:34):
guest today is Brad Garny.
We want to welcome you to ourshow first of all, Brad Gurney.
Brad Gurney (02:39):
Thank you, jackie.
Thank you for inviting me and Ithank you for how you're
helping the business communityto learn about different options
in the lending world and tomake what can be a complicated,
hard to understand process easyto understand, and you and you
(03:06):
help these companies to getfunded.
Jacquelyn Jackson (03:09):
Exactly, and you're right.
And that leads into the quickquestion I got.
First of all, I'd say you aredefinitely welcome to be here,
but knowing what you know andyou just talked about helping
businesses and you've done a waylonger than that I have for
sure.
So, in the process of helpingthem, before we go into, let's
talk about first of all, thefunding from when it was to what
(03:29):
it is now.
What are you seeing?
First of all, let's talk onthat at the same time and,
excuse me, explain a little bitmore about the invoicing and how
that works in that that era aswell, if you could, brad.
Outro (03:40):
Garny.
Brad Gurney (03:40):
So how invoice or receivable factoring works is
one of the simpler forms offinancing.
My clients will provide theirproduct or service to their
customer, so it's just anotherday at the office.
(04:03):
Right then is when they needthe money.
They sell me that invoice.
So if they provided theirproduct to Texas Instruments?
Outro (04:19):
Brad Garny.
Brad Gurney (04:20):
Texas Instruments said thanks for the box of parts
.
We'll pay you in 45 days.
My client needs money before 45days.
They got to buy inventory, theygot to make payroll.
They sell me that invoice.
I'm going to give them 90 95cents on the dollar the day they
(04:40):
sell it to me, brad Garny, I'm.
I'm then going to wait forTexas Instruments to pay us.
When we get paid, we'll takethe 5 10 percent that we held
back, take our fee out of thatand then return the difference.
(05:01):
But our clients getting plentyof money up front on day one so
they can do what they need to do, pay all their operating costs
Right, stay current and getanother job out the door.
So it's a straightforward justselling an invoice.
My clients sell the invoicesthey need to when they need to.
So we're not, they're not undera contract to sell all their
(05:24):
invoices or that they have tomake.
They have to generate so muchmoney for me revenue a year or
something.
I want my clients to grow andif they grow they generally need
to factor more.
So we're there to help themgrow.
Okay, and now?
(05:44):
And that part hasn't changed inour last 45 years.
What has changed is we startedour business with a check ledger
manual, manual posting cards,rotary telephone, telephone
(06:05):
telephone tomatoes.
Tomato soup cans right, yes,I'm still, I'm still qualified
with smoke signals.
But these ledger cards, we weresupposed to add them up and they
were supposed to balanceEverything.
Yeah, I enjoyed the marketingand sales part, but the the
(06:26):
account oh, I should have paidattention in accounting, so so,
thank you.
Just a fax machine was a bigdeal back then, right, and now
of course we're.
We're working with our, withour software provider, to make
(06:46):
sure our client portal is justas intuitive as your Apple phone
, right and user friendly andthat's why I learned about.
Jacquelyn Jackson (06:58):
Look blockchain dollars technology
out.
Here I get.
We have to know all that stuff.
Brad Gurney (07:03):
So, and we got our, so our software developer, they
, they, they have that, thatexpertise.
And as we bring a new client onboard, we say you're going to
love our portal, youraccountant's going to love the
portal, you'll get all yourinformation here.
Let me train you.
Oh, we were already on theportal.
(07:24):
We don't need to waste our timegetting trained.
So it's, it is intuitive.
Jacquelyn Jackson (07:28):
So it's a lot more easier, as what you're
saying, to actually get yourfunding.
Now I think let's talk aboutthe time.
Is it?
Is it quicker, is it longer?
Brad Gurney (07:36):
Probably quicker in that our client.
Well, when we started and I'veused Texas instruments thank God
for them because 40 years agowe opened an office two blocks
from Texas instruments, atCentral and LBJ, and we were
wanted to be close to thembecause all our clients were
(07:57):
dropping off parts in printingand supplying warehouse people
and they had to physically bringpaperwork to my office.
Jacquelyn Jackson (08:08):
That's why you had to be closer to your
client.
Brad Gurney (08:11):
And so they were dropping off parts.
Then they'd come to our office,get a cup of coffee, get a
donut, would make phone calls,would get everything situated
and then, and then, maybe in aday or two, we're be able to cut
a check.
Jacquelyn Jackson (08:24):
Wow.
Brad Gurney (08:25):
And so now my client downloads their pay.
Their pay downloads theirinformation.
Jacquelyn Jackson (08:33):
There's no you don't even have to see them
to go in and just initially putyour first preapplication.
Brad Gurney (08:36):
Yeah, and it's yeah , and everything's streamed,
downloaded, and I look and I see, oh, that's there, that's there
, that's great, let's buy, let'sbuy that invoice, let's wire
the money and and that's it.
Jacquelyn Jackson (08:49):
Yeah, and that's the hot.
What's the timeframe on that?
Probably what.
So turn around town, probablylike what.
Brad Gurney (08:55):
It can be a matter of hours.
What hours it?
Jacquelyn Jackson (08:57):
could be sure and see that's different than
what we have heard of long timeago how long stuff take and
there are some, and I want ourlisteners now listen to what
he's saying.
He's saying you may be hours ormaybe days, but compared to a
term loan and a bank loan, it'sa lot shorter.
Oh is what we said timeline.
So see, that's an option, guys.
Remember we talk options, notalternatives, but options that
(09:19):
you have out here that you'renot aware.
Brad Gurney (09:21):
And as as an option we're.
One of our advantages is we canmove very quickly.
Okay, my partner and I willmove very quickly.
Okay, people aren't contactingus because they might need money
next month to.
They are in a bind right now.
They have an opportunity rightnow.
(09:43):
They need cash Right Now.
That that's why they're callingme.
We understand that.
Okay, and if I take care, if Iam a solution to their problem,
I'm going to fund them quickly,right?
Jacquelyn Jackson (09:58):
Quickly Now this is what I want to say from
the loan broker side, so youguys can know what he's saying.
That one thing that sticks out,I think, with you all is that
you want to know, okay, whatqualifies me to even get this
loan.
So we do want to mention thequalification.
If I'm right and Brad you cancorrect me it's based on their
vendor the one that invoicetheir customer that they're
(10:19):
sending into you.
So let's talk on that.
So tell me what it had.
Brad Gurney (10:22):
Yeah, so as I buy that invoice, I'm not expecting
my client to pay me back.
Okay, they provided thatproduct, that service, to their
customer.
Their customer is going to paythat invoice, right, so I run
credit.
So it's a customer who's goingto pay me, so I'll run credit
(10:42):
reports on their customer.
Are they billing TI?
Are they billing the schooldistrict?
Are they billing a hospital?
Are they billing the city ofDallas?
So if that customer is creditworthy, that's what I'm looking
(11:03):
for and if my client was billinga commercial moving company
today, it was a $6,000 bill.
That commercial moving companyhas to have a credit report
where they've paid $6,000 billsbefore right.
Jacquelyn Jackson (11:22):
Right.
Brad Gurney (11:24):
Now I wouldn't buy 6 billion to that company, but
my client's doing $6,000.
It's a perfect fit, Right foryou.
Jacquelyn Jackson (11:32):
And I like that because that's what we need
, to see what the options are,because also with you guys, as
good and tell me, correct me ifI'm wrong.
What about, like, safe againstthe instant contracts, if a
person have a contract with thegovernment?
Brad Gurney (11:45):
Yeah, if a contract is going to work the same way,
okay, and that factors, bydefinition, are buying the
invoice, they're buying thebilling for something that's
been delivered, something that'sthat is, the service was
(12:06):
provided, okay.
So if you have the contract tomow up and down the highway, I
can't help you buy tractors, butif you can mow for one week,
okay and build a highway for$10,000 worth of mowing got you.
(12:31):
Then you.
Then you don't have to wait the3040 days, 50 days for the
government to pay.
Jacquelyn Jackson (12:38):
Right.
So basically we're saying againpeople an option.
A lot of folks are, some peopleare trying to get into the
contractual business with thegovernment.
You know we get a lot of that.
Our women are trying to,minorities are.
We get that.
But what are you doing to getthat contract?
Because you need money, becausethey're not paying you
necessarily up front.
That's what you have to realizewhen you get a contract Some.
Most time you're not paid anymoney up front.
(12:59):
No, you're paid at the end Right, and that's where you come in.
Yeah, okay.
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Outro (14:00):
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(14:21):
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Jacquelyn Jackson (14:31):
Now let me ask you about the company that
you're getting the invoice from.
But that's actually what isyour customer when they be their
customer.
Brad Gurney (14:40):
So we call them our client is who.
I'm going to fund.
Jacquelyn Jackson (14:43):
The business owner.
Brad Gurney (14:44):
Yes, the business owner is my client and I buy the
invoice to their customer.
And then what's the thing we'retalking about?
So my client and a lot of myclients are going to be in the
startup phase.
And then also we've had clientsas entrepreneurs.
You run into an entrepreneurwho's put too much money in
(15:05):
their business maybe their lastbusiness didn't work out so well
, and so the entrepreneur has arough credit report.
Okay, okay, that's okay for me.
See, that's okay for me.
We're not focused on theirpersonal credit report, their
personal credit score.
I'm not going to tell you howlow I go, because nobody will
(15:26):
believe me.
Jacquelyn Jackson (15:27):
Right.
Brad Gurney (15:27):
Because if they're providing a window washing
service to the Federal Reservebuilding on Pearl Street, I know
the Federal Reserve can justprint up money, right?
I guess we're not supposed tostart down that route.
Jacquelyn Jackson (15:48):
We'll do that for the next one.
Brad Gurney (15:51):
Okay.
So my client, they might havehad something.
Their credit score might bevery low.
They're going to get paid bythe Federal Reserve.
They've cleaned the windowsRight, so that's a great
situation.
Jacquelyn Jackson (16:08):
That's what it is.
So now let me show you what wejust incited to.
You can have a business.
Your credit may not be as good,but you have a lot of great
client invoice clients is whatyou have.
Now you have anotheropportunity to get some type of
money because you can sell themand therefore you can get that
money to continue your business.
Brad Gurney (16:28):
Happiness is positive cash flow, Jackie.
Jacquelyn Jackson (16:31):
Exactly, and that's how that works.
So that's what we're going totalk on.
We got more stuff that I'mgoing to go through with this.
I just want to kind of, at thispoint, make a comment and note
to you all of how important itis for you, as business owners,
to learn your options, becausewhen you are slammed in that one
situation or you believe yourbankers are the only way you can
get money, it locks you in andit doesn't free you up.
(16:53):
And then, just like I mean itwas a saying that I had heard
from a guy that said you knowyou have to free yourself, you
know, from certain things thatstop you from growing, and lack
of knowledge is one.
Another one is free yourselfwithout actually freeing
yourself.
But you should notice, when thetime you actually imprison
(17:15):
yourself, that you can see youimprisoning yourself and lack of
knowledge and knowing what elseis out.
There is definitely what'shappening with business owners.
That's why we're here, that'swhy he's here, because now you
now have an opportunity to getthese, when you get these
contracts, because, if they can,they can still just submit it
to us, right, and you can lookand let us know how much you can
(17:36):
do of it, right.
Yes, yes right Because.
I know you said well, I'm notdoing all of it, but we can do.
Brad Gurney (17:40):
Well, yeah, and we'll work with our clients and
as we get credit information inon their customer, we keep our
client informed.
Hey, macy's is showing a lot ofstruggling signs.
You got that shipment ofdresses.
Maybe you can ship them to Rossstress for less instead of
(18:04):
Macy's Right, because who wantsto?
Jacquelyn Jackson (18:09):
ship out those dresses, right?
Brad Gurney (18:11):
not knowing if you're going to get paid.
Jacquelyn Jackson (18:13):
Okay, so you said you kind of stay on top of
monitoring what's going on withthe vendors as well, and that's
why now, let's, let's understandNow, mr Bright is actually
saying that it's a certaincaliber that he's only going to
work with.
I do have other factors, like,say, there's other factors out
there Like we talked aboutconstruction.
Brad Gurney (18:30):
There's factors who specialize in that, so they
need to know that.
Jacquelyn Jackson (18:34):
So if do you know the different type of okay,
you name some different typesof fact, like I know
construction, because you and Italked about it.
I asked you about it.
Brad Gurney (18:42):
So the classic factoring is the category of my
company is going to fall in,where we're providing our
service to the staffingcompanies and manufacturers,
service companies, oil fieldservice, the other two major
(19:03):
categories of factors one'sgoing to be healthcare factors,
where a clinic, a hospital isbilling insurance, medicare,
medicaid, gotcha.
That of course is going to bevery specialized billing.
Jacquelyn Jackson (19:18):
Yeah, understand.
Brad Gurney (19:19):
And then construction factoring Is
another, is the other.
There's just a level ofconstruction laws out there.
There's a level of laws outthere about when you can bill,
when a payment has to be made,if a when a late payment can be
bonded, and and If you're goingto get into that kind of
(19:42):
factoring, you really have tospecialize in that, because it's
more detailing, you're right.
Yeah.
Jacquelyn Jackson (19:48):
I mentioned contract.
I noted from having experiencewith working with them is you're
right because you got that umpavement, that contract, that
subcontract and all that.
Brad Gurney (19:56):
Well, and then subcontractors there's, there's
laws about them being paid,there's lots about inventory
being paid and the supply.
So yeah, then you especiallyspecialized.
Jacquelyn Jackson (20:05):
Okay, so that's good.
So we're basically saying thethree types of categories you're
talking about that that'smajorly you know about is the I
guess the at me and pretty muchfactor in administration, like
you said, sales, retail, allthat, that retail type, right,
if we want to call that.
And then you have the healthcare and then we have the
construction.
Brad Gurney (20:23):
Is that right?
I wish you would know, so I'llcall it.
I'll call it the.
I'll call it classic factoring,traditional factoring.
Okay, it is it in the 1950s,1960s in America?
America had a lot of furnituremanufacturers.
(20:45):
America had a lot of carpet,carpeting manufacturers and
those industries were Allfactoring, all the all the
little furniture shop, bigfurniture and so those in.
So that really was a.
Where factoring is a Is goingback to the Mayflower.
(21:11):
There there was factors thathelped finance that, the
Mayflower.
So it's an old, it's a very oldform of financing but it really
grew in the 1950s, 1960s and inChicago, new York, to Finances
right these industries.
Jacquelyn Jackson (21:30):
So let me ask you this, since you you said
it's because I can see it was alot going on.
Now it's not as much of itgoing on now, you think always
grown is wrong.
Brad Gurney (21:39):
That's what I'm saying it's so those industry
yes.
So there's probably not as manyfurniture manufacturers in
America but, there's Still allsorts of lots of manufacturing.
manufacturing is coming back toAmerica.
We're getting a chance to workwith some of those companies.
Staffing there is a Huge partof our economy and that includes
(22:07):
it could be healthcare staffing, warehouse staffing, it
staffing.
The outsourcing Companies willuse outsourcing to hire
receptionist, to hire People towork on a project for six months
and then they know thatproject's gonna wind down so
(22:29):
they outsource it.
Those are all companies thathave a just got a profitable
contract and they've got fivepeople who can go work for
Amazon, but now they gotta makepayroll and Amazon's not gonna
(22:51):
pay them for 45 days.
Jacquelyn Jackson (22:53):
I see that you can step in and help them.
Brad Gurney (22:56):
So it's a I forget how many billions, Just a huge
number that was factored inAmerica last year.
Jacquelyn Jackson (23:05):
Wow.
So nothing has changed on factand it's just being aware that
it's available and matching upthe industry with the client the
customer right, yes, is what weneed to do to match that up.
But see, that gives us ourbusiness almost another way of
getting money, and that's why weinclude that in our stacks of
what we do.
So we're found out that.
(23:25):
It is wonderful because, likeyou said, it's not based on the
credit as much.
But it's like some clients,even though they credit is great
, they still can't walk awaywith half a million dollar loan
Just uncollaborized.
So they have.
We have used you guys becauseyou came in really good at that
point to work Factoring work.
Wonderful for you.
Brad Gurney (23:45):
And as our economy goes through cycles, go through
changes.
With today's economy, the banksas they some banks had
challenges last year, the banksare at this point going to be
more cautious with theircommercial lending.
Jacquelyn Jackson (24:01):
They are, they are.
Brad Gurney (24:02):
They're going to be more cautious If you walk in
with accounts receivable, maybethree, four years ago, maybe the
bank might have had an appetite.
Right now they're going to bemore cautious.
The interest rates are higher,the banks are cautious and yet
the economy's strong and a lotof startups are getting these
(24:26):
new contracts Right.
They are how are they going tofunction Exactly?
Jacquelyn Jackson (24:29):
exactly, and that's why we wanted to have you
on to actually talk about thefactoring or the invoice buy-in,
as you said invoice buy-in soour clients, our customers,
listeners, can know what's theoption and what is out there,
because we're talking to justabout one of many, and that's
what happens with us.
When we're in business, we onlyknow about one or two things,
(24:51):
and so you have to understand atsome point.
Lack of knowledge will affectyour business.
So we're trying to involve andhave people here that can talk
about all the different options.
This is wonderful for a lot ofpeople that's actually looking
at doing contracts for thegovernment, cause I actually
have some people that come inand say I want to start my own
company.
You know the first thing.
We ask them okay, well, howmuch money you have to get
(25:12):
started?
And we say that because we havea business development side as
well.
So when they come talking aboutmoney, we have to ask certain
questions and what we realize isthat people don't, business
owners don't realize all theoptions they have.
And factoring receivablefactoring is a wonderful option
for people, for business owners,to utilize.
So I guess as best as reach out, find out what all can be done
(25:36):
and how we would actually do itright.
What are the extensions youhave?
Brad Gurney (25:43):
So, of course, working with you, okay, of
course.
And as we talk to a prospect onthe phone, we're finding out
who their customers are, ofcourse, what business they have.
Are they a drywall contractoror are they a security guard
(26:06):
company?
Right, so I want to make sureit's an industry I'm comfortable
with.
And then, how much are youbilling out?
I'm billing out 2,000 a month.
You know I know a factor wholoves smaller volumes, right.
Well, I'm billing out 20million a month.
You know I know a factor wholikes bigger volumes, right.
So, either way, yeah, so Iguess I'm.
Am I Goldilocks?
(26:28):
Is she the one who gets the bed?
Just right?
Yeah, yeah.
So you see, it's been a longtime since I've read the stories
.
Right you and me, so yes, soyeah, so we will work with the
prospect and try to qualify themvery quickly that that's
something we're interested in.
(26:48):
And then if, oh, you got a goodfactoring deal but here's a
company that would fit yourneeds better, be happy to give
them that referral, because wehave a five-star Google rate and
we've been top rated becauseover our 45 years we've learned
(27:10):
let's stick to what we're goodat.
Jacquelyn Jackson (27:12):
Right, right, and that's what you're good at.
And if it's?
to this too much that no, andthat's what makes you guys a
perfect fit for certainbusinesses.
So, listeners, if your businessis based on invoices you have a
lot of invoices that you getpaid off of, okay, so you have
businesses that you get paid offof then you want to actually
(27:35):
look at factoring.
Also, if you have a biggervendor, client or client,
because we call them vendors butif you have a vendor that is
big enough for money wise, thatcredit worthy, is really good.
I mean, you really want toconsider factoring that invoice.
And I know sometimes we maythink well, like Texas
Instrument, for we can, we can.
(27:57):
You know we're gonna pay, soI'm just gonna wait.
But let me tell you whathappens in business.
That's fine if it's a personalthing, but when you in business
payroll comes up, problems comeup, mechanical.
Brad Gurney (28:10):
Problems, take money.
Jacquelyn Jackson (28:11):
Problems take money.
When you start talking aboutactually business and you look
at the options, the one thingabout business owners try to do
is think, oh, I can do it or Idon't need it.
I need you out to really thinkwhy would you go through that
when all you have to do is reachout and contact someone that
can show you what's availablefor you?
You either can take it or youdon't, but at least you'll know
(28:34):
you have options, have theoption.
Brad Gurney (28:36):
And again, we don't require our clients to factor
all their invoices or to factorany of their invoices.
If we had a company that wasdelivering, manufacturing and
delivering patio furniture toHome Depot and he thought, okay,
(28:58):
I'm gonna get you in place, Iwant you to get me qualified,
I'll, let's get everything, allthe paperwork done, let's get it
.
I don't think I'm gonna needyou for six months, maybe a year
.
But he had the foresight toknow that Home Depot could turn
that dial just a little bit andhe would be snowed under.
Jacquelyn Jackson (29:21):
Oh true, oh my goodness, that is so true.
So you need to, and you-.
Brad Gurney (29:26):
And so he had the foresight, and so good for him.
Uh, uh, and, and then, andwithin a month, he came to us
and said I need the money.
Let's uh, we're, we're inbusiness.
It's okay, I'll buy you lunchfor Admus.
Jacquelyn Jackson (29:43):
I know I'll buy lunch, but and see, and
that's what we're doing we'retrying to teach people in our
courses that that you need tohave yourself set up for the
money before you need the money.
Brad Gurney (29:52):
Jackie, it's so much easier to get this in place
before you need it.
It's so much easier to qualifyyes Before you need it.
Before you've taken your lastpenny out of your IRA, buried in
your business, and it's gone.
Now that is true.
Jacquelyn Jackson (30:11):
I, we, let's stop.
I want to emphasize on that.
I've had it happen so manytimes.
When you reach out to us as aloan broker, or you reach out to
Brad and them, by the time youreach out to them, you've either
ate up your credit, like yousaid, or you've taken everything
out of your retirement, all ofyour savings, you've used all
that, and now you come lookingfor us.
(30:32):
Come before that time.
That's what you, when you havethat money there, then come with
us, we, we understand.
Brad Gurney (30:40):
This is my company.
I've put my money in my company, so I understand that you're
going to fund your baby, but Icould only put so much of my
money in.
Jacquelyn Jackson (30:51):
We had to get other resources, so it's just
right.
Brad Gurney (30:54):
And and I'm glad that we're explaining this
option- yes, I am, we need tohave it.
Jacquelyn Jackson (31:03):
So I do want you all.
Anything was not before, but Iwant anything you want to say to
our listeners to let them, orany call or action you want them
to do at this point.
Brad Gurney (31:14):
I love how you've explained that we're focused on
the credit strength of thevendor, the customer, and the
flexibility we try to offer thatwe do offer our clients so that
we're there to help them grow.
(31:36):
We do get clients who have toput out a fire.
They're behind on on payroll,they're behind on, yeah, and you
can't be there very long, butthat's the business world and
things happen.
So if it's a strong situation,if we can get our hands around
it, then, let's, let's get thefire out and let's go forward.
(32:05):
It's that some people have alsosaid well, gee, factory is
expensive.
Well, what's the value offactory?
We did sign up for client yearsago and he was really.
He was a high paid softwareengineer.
He was just billing a companyfor his hours work.
(32:27):
I think we were factoring hispayroll.
I kept asking him about it.
He goes no, no, I want to dothis.
He never grew.
He never hired another per.
He never grew.
It was like at the end of theyear I was like why are you
giving me a fee and you're not?
Um, I don't know what his thevalue was to him, but we signed
(32:50):
up a machine shop out in Kaufman, texas.
He was billing severaldifferent oil companies about
50,000 a month and a littlewhatever they they use on the
pump checks.
When he sold his company he wasbilling out a little over 3
million a month Now providinghardware to the hospitality
(33:19):
industry, to hotels, and to getwork from 50,000 a month to 3
million a month.
It took a lot of money and hemade a lot of money.
He paid us an expense but hewouldn't have grown and he
wouldn't have made all the allthe extra money.
(33:40):
So it takes money to make money.
Jacquelyn Jackson (33:44):
Right and we have to understand that this is
not person's business.
You have to understand that.
That's why it's so important tobe aware of receivable factor
in your profile of lending.
Slash financing money, workingcapital opportunities, working
cap.
You have to keep the factoring.
(34:05):
I believe factoring is one ofthe major ones we like and we
like to use for certain clientsand I think, like I said, people
need to be aware that it's outhere and that it's available and
everything for you as well.
Okay, so we're going to getready to wrap this up, I do want
to thank you and I appreciateyou so much for being here.
Brad Gurney (34:23):
Jackie, you made this very enjoyable and I've
learned better how to explainfactoring.
Jacquelyn Jackson (34:33):
Thank you for my little comment, thank you
for our conversations.
I appreciate you and I want tothank our listeners.
I appreciate you all so much,the feedback we're getting, the
comments we're getting, and Ijust thank you.
So we didn't let us know whatwe're doing and our lenders
coming out professional lendersthey actually come out there in
the industry when I sayprofessional, I mean they're
professionals in the industry,they're in the financing
(34:54):
industry and they're coming outand they're giving you guys
their insight and that knowledgeand I appreciate you all
thanking us and you're glad thatwe have there.
If you want to be aware ofeverything we got going on
listeners for as our podcast,you can listen to us on all the
platforms all over the majorplatforms.
You're on those, so you canlisten to us on those as well.
(35:15):
As we would love for you guysto be part of our funders
insiders community.
We do have that where you cango sign up at tdjequityllcnet
backslashpodcast.
We want you to sign up becausefrom there we're actually
educating people more throughour mailing of also giving you
some PDFs.
We give you some documents.
(35:36):
We try to give you guys a lotof stuff that can kind of guide
you on the lending road, of theproper way, of how you should be
set up to be fundable.
So again, I want to thank youguys for being part of our show
and until next time, take careand thank you.
Intro (35:53):
We hope you enjoyed this episode of TDJ Equity Funding
Insiders podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet, forward slash
podcast or email us at podcastat tdjequityfundinginsidersnet.
Until next time, take care.
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