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FactorTips
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Jeff Callender, Editor
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(c) 2004 Dash Point Publishing, Inc. All rights reserved. Reproduction of the copyrighted
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Tribute to LaNell Earnhardt
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 This issue begins with a tribute a friend, both to me personally and to the factoring community in general. On May 19, 2004 we lost a treasure in the person of LaNell
Earnhardt of Mt. Pleasant, SC.
With her husband Ken, LaNell owned and operated the factoring firm of KLT&J, Inc., as well as SubFactors.com, a program which trains small factors to purchase the
receivables of local subcontractors. Their business also includes the Commission Express franchise for the Coastal area of South Carolina, which has been recognized as the
organization’s top office in the country. LaNell was the heart of these companies’ daily operations, and her sweet disposition, warm and generous nature, and incredible efficiency made her not
only a remarkable individual, but a truly unforgettable person
Ken and LaNell met in 7th grade, were childhood sweethearts, and were married nearly 33 years. Ken has said, “She was my friend,
counselor, and business partner. Rare are the relationships that can stand up to the stresses of managing a business together, but we were able to do it because of her supportive nature.”
I first met LaNell in person at Cash Flow 2003 in Dallas, though I had spoken to her many times before on the phone and felt as if I had known her for years by the time we finally met. Involved in
factoring long before I was, she and Ken have given me many words of advice as well as encouragement. She was always generous with her time, kind and understanding with her listening
ear, and her beautiful southern accent was so charming it would melt your heart. She would answer questions and make suggestions with incredible tact, and always left you feeling glad
you had spoken with her. She personified graciousness.
LaNell was one of the contributing writers to the book Marketing Tools for Small Factors and Consultants. Her words were well
chosen, needed little editing, and made very significant observations and suggestions throughout. Her wisdom and guidance in this book will help many in their marketing efforts for a
long time to come. She was looking forward to being on the Small Factors Panel at Cash Flow 2004 in New Orleans, but sadly passed away just days before the convention.
Though LaNell had been experiencing heart problems in recent months, her passing was sudden and unexpected. Those who knew her have felt the sharp sting of loss yet also the
reassurance of her deep and unwavering faith. She was truly an inspiration and a blessing to each life she touched.
If you would like to make a remembrance to LaNell’s life, you can do so to:
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Is Your Small Factoring Business
Listed in SmallFactor.com?
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Attention small factors! Is your company included in the Factor Listing of SmallFactor.com? It can be a great source of referrals and it’s FREE!
What’s more, if you have a deal you can’t do,
chances are someone on the listing will be interested in it. Find an appropriate referral and make the call. Bookmark the page!
To be included on the Listing, requirements are that you:
are presently purchasing receivables (not just planning to, or consulting only) accept accounts which factor less than $10k per month. pay a 5% referral fee to SmallFactor.com when you book business through your listing without using a consultant.
The Listing’s purpose is to assist smaller factors who do not fund large receivables. (We may make exceptions for niche
factors who specialize in trucking, construction, and medical receivables.) Companies with maximums over $500k are encouraged to use web site listings suited to these larger receivables.
To see the Listings which are sorted by State go to Listings. To be included fill out the form at Request Listing.
Links to listed companies’ web sites are
provided. Contact each to learn the parameters of transactions they fund.
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Marketing Books for Your Business
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We’re pleased to announce another book to help with your marketing will be released in early August! Marketing Magic -- The Bigger Bang for the Smaller
Budget, by Ralf Bieler. This is Dash Point Publishing’s latest offering, for $14.95!
Ralf’s many
years’ experience in marketing for Fortune 500 companies prior to becoming a small factor gives him many insights and methods, which he has adapted successfully to his factoring business. In fact, they
worked so well that he entered ACFA’s Million Dollar Club in just 10 months! He generously shares his secrets in Marketing Magic!
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Reflections on Cash Flow 2004
The annual Cash Flow Convention of the American Cash Flow Association never ceases to amaze me. This year over 4000 people
registered and attended this event in New Orleans at the end of May… not counting the exhibitors and numerous speakers at the scores and scores of workshop sessions.
Every year I come away, my head spinning,
with enthusiasm from all the new people I meet, the developments in our industry, and the new directions in store for our business and daily lives. There was the usual big-name entertainment, this year in the person
of Lily Tomlin, who cleverly included many convention topics and classes into her act. Larry and Marilyn Singer’s class got incredible publicity as the subject of one of her Ernestine routines: “Delinquent Debt for
Fun and Profit.” You can imagine what she did with that!
This year I had the pleasure of leading one of only three pre-convention classes, called Funding Small Receivables. This two-day course was co-taught
with colleagues Ralf Bieler, who presented the Marketing section, and Robert Vasquez, who presented the software section. The twenty people in attendance left with a barrel full of information… and the convention
hadn’t even begun yet!
The two workshops I led during the regular convention were well attended and received. Those included the class entitled “How to Make Large Returns from a Few Small Receivables,” and a
Small Factors Panel. Those on the panel included Joy Ann Venverloh of Lexus Funding in St. Louis, Ron Weber of Prime Time Funding in Reno, Ralf Bieler of Multiple Funding Solutions in Tequesta, FL, and Joanne Blaser
of JMB Business Funding in Rockford, IL. I especially appreciate Joanne’s willingness to fill in on very short notice. The large room was full of people who learned first-hand there are several funders for small
receivable all around the country, five of whom were before them.
While there were many, many exhibits and services there, two stand out in my mind as pointing to future directions that will impact small
factors.
 The first is the team that has
created the BluBeagleTM resources, of which I am proud to be a part. The BluBeagleTM mascot – which gained the name “Buddy” as the result of a contest at the convention
– became a familiar and friendly sight throughout the week.
BluBeagleTM not only provides affordable contact management software especially for
consultants (of any cash flow), and data base and accounting software tailored specifically to small factors, but many other resources to help members of this community grow and enrich
their businesses. These include a Consultant’s Resource Package, a Factor’s Resource Package, and a Marketing Kit, each of which is made up of multiple resources created especially for our
industry and niche. Learn more at www.BluBeagle.com.
The other service which caught my attention was the presence of at least two exhibitors who provide a relatively new means of
funds transfer: debit cards.
I have been an advocate of using electronic funds transfer (Automated Clearing House, or ACH) for some time now. But it
appears that the use of debit card transfers may soon supplant ACH for convenience and speed.
Very briefly, here’s how they work. A small factor purchases
multiple debit cards from a provider. One card is kept for the factor, another card is given to each client (who in turn might provide cards to their employees, which can easily be used for
payroll). Each debit card is, in effect, a virtual bank account into and from which you can deposit and withdraw money. These transfers are done instantly with the debit card; with other virtual
bank accounts, such as PayPal, funds transfers take several days to complete.
The factor simply needs the debit card number for a client (routing and bank account numbers are unnecessary), then goes
online to transfer funds to the client’s card. Transfers can be bank to card, card to card, or card to bank. When made as card to card, funds are available to the client in a matter of seconds;
card to bank and bank to card have the day’s lag time of an ACH. The client can then transfer funds from his card account to his bank account, and can even take the debit card (it looks like any
other debit card) to an ATM machine for instant cash. Because these are debit cards – funds are deposited and withdrawn instantly with no float – anyone can receive a card, regardless of
their credit. This has “client convenience” written all over it, especially for mobile clients like truckers and any client for meeting payroll. Costs per card and per transaction are relatively
minimal to the factor.
In short: Funds are transferred faster than an ACH (which takes at least a day to land), cheaper than wires (which can easily cost
$20 to $30 in wire fees), and available to anyone, regardless of their credit. And funds in the card can be cashed at any ATM machine. The factor simply gives the client a card, and they in
essence have a bank account with access to immediate cash. Consultants and private lenders could be paid their monthly commissions and interest payments this way as well.
I have ordered a few cards to test among some of my clients; I’ll let you know in the future how this works out. If it’s as good as it appears now, I will no doubt be moving my mode of funds transfers to this method.
Now, what do all these developments from Cash Flow 2004 mean for our businesses?
First of all, during this summer, I will be studying the evaluations
from the participants of my pre-convention class and transforming this class into a training course. This will integrate many of the materials from Dash Point Publishing and morph into a complete
“learn to be a small factor” program all in one box, and be available by winter this year. In addition to planned hands-on training classes for consultants, BluBeagleTM will also offer this
course in the form of a live two-day seminar, offered alternately in Florida and the Seattle area, every month or two. Dates and costs will be announced.
Second, BluBeagleTM is already providing some extremely helpful
resources and turn-key solutions beyond just software. This will definitely be a company to watch, and a web site to bookmark, for some time to come.
Finally, a newer, faster and more convenient means of funds transfer is at the doorstep of literally any size operation, at very minimal cost. Expensive wire transfers and slow, written checks
will eventually become obsolete. Those now using ACH electronic transfers will sooner or later evolve to this newer method, and those still cutting checks will feel like they’re working in caves.
Wow, what a business! It’s a great time to be a small factor!
Jeff Callender
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 Each publication we announce the winner for that issue’s free drawing.
When you register to receive FactorTips you
are automatically entered into a new drawing to receive an autographed free copy of one of the paperback books from our catalog.
The winner for this issue is Paul Dendary of Las Vegas, NV, who
chose to receive Marketing Tools. Congratulations, Paul!
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Reader’s Featured Web Site
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Each issue we feature the web site of one of our readers. Our purpose is to highlight the niches and expertise available
within our community so that everyone reading FactorTips can make good use of them.
To request your web site be reviewed for this feature, drop an email to: info@factor-tips.com and put in the Subject line “Featured Web Site.”
This issue’s Featured Web Site is that of Sterling Capital Services, of Union, KY. Catherine Seifert is the owner. Catherine has used her background, networking skills, and marketing acumen to make an quick mark in her
region! Take a look at this exceptional site by clicking the link below.
Sterling Capital Services
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Business Services Classifieds
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Don’t miss Dash Point Publishing’s June-July Sale! This sale features exceptional
savings on our popular Small Factor Series, including the Home Study Guides. This series usually sells at a discounted price of $127 as a bundle. But during this extended sale, it is on sale for $112!
And we pay shipping! Order from this link: This Month’s Sale!
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The BluBeagleTM suite provides powerful yet easy to use software for factors and consultants alike, at prices that fit any budget. Register for a free online demo by clicking the link and completing the form on BluBeagle’s home page. And check out their other resources too!
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David Jencks is a partner in the law firm of Jencks & Jencks, P.C.
located in Madison, South Dakota. David's law practice consists primarily of assisting small and
medium sized factoring companies in structuring transactional documents, company set up, and contract litigation.
David also also represents regional lending institutions in preparing loan documents, problem loans and foreclosure litigation. David can be reached by telephone at 605.256.0121 or via email at: davidjencks@hotmail.com.
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Our new book, 
