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									  THE COMMERCIAL FACTOR                                                                                 Newsletter for the Factoring Industry
                                                                                                                                                 • Volume 8
                                                                                                                                                 • Number 3
                                                                                                                                                 • Summer 2006


Serving the Factoring Community Since 1999

                 IN THIS ISSUE

  g   2006 Factoring Conference
      Synopsis ..................... page 1
  g   IFA Advisory Board 3               2006 FACTORING CONFERENCE SYNOPSIS
      Starting A New Factoring


      Business 4                    With hurricane Wilma hitting Cancun        to say that I was able
                                                             less than six months before the            to come away with
                                                             conference, the IFA had to do some         good information in all
  g   Ex-Im Bank Transportation                              scrambling before this year’s event.       of these areas. Last,
      Freight Finance                         Even with the four changes in venue, the conference       but not least, Cancun
      Program 5      was a resounding success.                                 was a beautiful place
                                                                                                        to visit."
  g   The Best Salespeople                    Amazingly, all aspects of the conference ended up         Pat Haney
      Rarely Make Good                        flowing smoothly. The Fiesta Americana Condesa             Commercial Capital
      Managers ................... page 6     Cancun turned out to be the perfect venue for the         Lending, LLC
                                              event. All of the speakers were exceptional and the
                                              exhibit hall provided an excellent experience for both    "When you take your first tentative step into the
  g   Legal Factors 8      the attendees and exhibitors. Food was excellent,         world of work, Factoring is an industry you will
                                              weather was perfect and the entire atmosphere of the      not be aware of, never mind a career of choice.
  g   Capital Tax                             event could not have been better.                         It is an industry we fall into later in life. Like most 9                                                                things fallen into, once you are in, it is rare that
                                              We have asked the IFA board members and their             you get out. Although my love affair with factoring
  g   IFA Training Courses -                  associates to give you their views of the event:          still continues, there are usually times I wonder
      Past and Future ......... page 10       "For me, the Conference in Cancun was good for
                                                                                                        whether I should have jumped over the trap.
                                                                                                        The conference to me is a treble espresso shot
                                              a number of reasons. It gave me an opportunity            that gets me back in the groove. Sharing stories,
  g   Upcoming Events ...... page 11          to catch up with a lot of people in our industry          challenges and successes with my peers I always
                                              who are not just business acquaintances, but real         look forward to. When you realize that regardless of
  g   Factoring News                          friends. These friends are open and honest about          size or experience there are hundreds of your peers
      Flashes .................... page 12    their feelings as to the current state of the factoring   facing similar challenges, asking similar questions
                                              industry and their businesses. These get-togethers        and having the same wonderful clients. I look
                                              give us all an opportunity to check ourselves and
  g   Job Opportunities ..... page 13         compare our businesses to our peers. My personal
                                                                                                        forward to next year,
                                                                                                        knowing that I will
                                              checklist this year was to learn what I could about       have my fair share
                                              three areas: software and technology improvements;        of experiences to
                                              underwriting policies and procedures; and the never-      share."
                                              ending quest for better marketing ideas. I am happy       Stewart Chesters
                                                                                                        Bibby Financial
             A Publication of:                                                                          Services

         THE INTERNATIONAL                                                                              "I think the first impression I had when I arrived
      FACTORING ASSOCIATION                                                                             in Cancun for the IFA was just how massive the
        2665 Shell Beach Road, Suite 3                                                                  destruction from the hurricane last season really
          Pismo Beach, CA 93449                                                                         was. Those of us who live in California joke, in a
     805-773-0011 • 800-563-1895                                                                        black humor sort of way (common in the factoring •                                                               business), that at least folks in CONTINUED ON PAGE 2
                                                                      P2 THE COMMERCIAL FACTOR
                                                                          NEWSLETTER FOR THE FACTORING INDUSTRY
a hurricane region know they are coming whereas earthquakes
hit without warning. I guess the main difference is that there
is not a 8.0 earthquake six times per year. Certainly flying in                     The International Factoring Association
over miles of forest that was still leveled after nine months of          2665 Shell Beach Road, Suite 3, Pismo Beach, CA 93449
recovery was sobering. Seeing massive hotels still struggling                                    800.563.1895
with recovery only highlights this fact and makes one wonder
just what the people from LA and MS are dealing with on a much
more massive scale. This kind of thing puts into perspective the
meetings we attend such as the IFA. The opportunity to meet                                    Bert Goldberg
with friends and colleagues who are all involved in helping
small businesses achieve success is especially important
when natural disasters strike. As usual the convention was
well run and it is always a pleasure to attend the panels and                                         EDITOR
discussions because the topics are so relevant to the factoring                                Susan McBeth
industry. It’s a nice change of pace from going to other national
level conferences and being treated like I’m a small child who
has wandered in on my parents’ cocktail party. “Now, now, go                                  ADVISORY BOARD
back to bed and don’t bother me unless it’s a deal over $10
million...”. In any case - a job well done by the folks at the IFA                           Stewart Chesters
and certainly count me in for next year, assuming New Orleans                          Bibby Financial Services, Inc.
is not pounded again by a category five hurricane."
Blaine Waugh
Riviera Finance
                                                                                                  Pat Haney
"While the behind the scenes maneuvering to assure hotel                             Commercial Capital Lending, LLC
accommodations for the Conference participants went on up
until opening day, the conference itself was clearly a great
success. Old friendships were renewed, new contacts made                                       Bert Goldberg
and I for one came away energized and ready to build my new                         International Factoring Association
factoring business. This conference is a must for anyone in
the factoring industry. There is no other setting that combines
access to both the most knowledgeable service providers in
the industry and to other factors."                                                          Danny Goldstein
Mark Weinberg                                                                          Advance Payroll Funding, Ltd.
BLX Funding LLC

On behalf of the IFA, I would like to thank all of you for trusting                              JW Reed, Jr.
us through all of the changes and attending this remarkable                                Jhanira Capital Funding
conference. I look forward to seeing you next year in New

                                                                                                 Bob Sawyer
                                                                                                 Riviera Finance

                                                                                              Mark Weinberg
                                                                                               BLX Funding, LLC
                                                                         The International Factoring Association’s (IFA) goal is to assist
                                                                         the Factoring community by providing information, training,
                                                                         purchasing power and a resource for Factors. The IFA provides a
                                                                         way for Commercial Factors to get together and discuss a variety
                                                                         of issues and concerns to the industry. Membership is open to
                                                                         all banks and finance companies that perform financing through
                                                                         the purchase of invoices or other types of accounts receivable.
                                                                         The Commercial Factor invites the submission of articles of interest
                                                                         to the Factoring Industry. For more information on submitting
                                                                         articles or advertisements, please e-mail, or
                                                                         call 800-563-1895.

                                                                         To receive this newsletter via e-mail, please send e-mail to
                                                                and type the words “subscribe IFA” in the
                                                                         subject line.

                                                                         To stop receiving this newsletter via e-mail, send an e-mail to
                                                                and type the words “unsubscribe IFA” in the
                                                                         subject line.
     IFA ADVISORY BOARD                                                                                                                                  P3

            The International Factoring Association has just completed a     “personal coaches”. In early 2005, Jhanira Capital Funding, officially
            remarkably successful and ground breaking year. The IFA has      started factoring deals in-house and targets smaller businesses for in-
            become an independent organization and continues to grow with    house funding.
            memberships and by offering various services for the factoring
industry.                                                                    Bob Sawyer - Riviera Finance - Redondo Beach, CA:
                                                                             Robert W. Sawyer, has been with Riviera Finance for over 7 years. Bob is
We’d like to thank our 2005-2006 Board Members for their time and effort.    Vice President of Riviera Business Credit and National Broker Manager
Those members are: Allen Frederic from Gulf Coast Business Credit,           for Riviera Finance. Prior to joining the Corporate staff in Redondo
Darla Auchinachie from Liquid Capital Corp, Tyler Grady from LSQ             Beach, Ca. his career began as a Merchandise Manager with Sears. On
Funding Group, Danny Goldstein from Advance Payroll Funding, Bob             moving to the Commercial Finance field with Borg Warner / TransAmerica
Sawyer from Riviera Finance and Mark Weinberg from BLX Funding.              Commercial Finance as a Region Manager, running the largest office in
                                                                             Floor Planning and then ABL lending. He then went to ITT / Deutsche
Our new Board of Directors for 2006-2007 includes three returning Board      Bank Commercial Finance as National Marketing Manager. He has done
Members from last year, Danny Goldstein, Bob Sawyer and Mark                 financial consulting, sales, marketing training and credit management
Weinberg. In addition, we have added Stewart Chesters from Bibby             seminars. He is often seen in an airport or behind a fishing rod somewhere
Financial Services (Holdings), Inc in Downers Grove, IL, Pat Haney from      in North America. Educational background includes an A.A, from Compton
Commercial Capital Lending, LLC in Baton Rouge, LA and JW Reed, Jr.          College and a degree in Economics from UCLA. Currently on the board
from Jhanira Capital Funding in Los Angeles, CA.                             of SouthBay FlyFishers and Serra High School, his interests are family,
                                                                             travel, education, music and outdoor activities.
Stewart Chesters - Bibby Financial Services (Holdings), Inc -
Downers Grove, IL:                                                           Mark Weinberg - BLX Funding LLC, a division of Business Loan
Stewart has been with Bibby Financial Services since 1999 and currently      Express, LLC - New York, NY:
serves as the Chief Marketing & Sales Officer for North America.             Mr. Weinberg attended the University of Michigan, where he earned a
Previously Stewart has been responsible for Bibby’s autonomous               B.B.A. in Business Administration, and the University of California at
factoring units in Chicago and Leeds, Bournemouth and Bedford in the         Berkeley Law School, (with his last year at Harvard Law School), where
United Kingdom. In addition Stewart has integrated many of Bibby’s                                                                               CONTINUED ON PAGE 4

recent larger acquisitions and new start units into the group. Receiving
his MBA from Aston University in Birmingham, UK, Stewart has also held
                                                                                  Being number one
directorships in local government in economic development and in youth
                                                                                  doesn‘t mean we‘re the best.
guidance / employment agencies. His love affair with factoring started
while running his own business he was a factoring client for 5 years.
                                                                                  It means you are.
Danny Goldstein - Advance Payroll Funding, Ltd.- Beachwood, OH:
Danny Goldstein is one of Advance’s founders. As Director of Operations,
                                                                                  Distintive Solutions factoring software
Danny oversees all funding operations, credit and collections activity,
                                                                                  is installed in more systems worldwide,
and all legal matters. He has been involved in financial related industries        helping more companies like yours become
since 1987 when he founded a retail installment finance company. In                more successful.
his professional career he has assisted companies in their strategic
development and has outlined many of their internal and external                  Discover why we are the world‘s leader
processes. Since 1997, he has been with Advance and has worked to                 in factoring software systems.
grow the company into one of the premier staffing funding companies
in the country.

Pat Haney - Commercial Capital Lending, LLC - Baton Rouge, LA:
Mr. Haney became involved in the factoring industry in 1987 when he
financed primarily healthcare receivables for many different types of
providers throughout the U.S. and was chosen as the Preferred Provider
for the Louisiana Hospital Association. Since 1991, Mr. Haney has served
as a Founder, Director and President of Commercial Capital Lending,
LLC and its subsidiaries. Commercial Capital’s primary line of business
is financing commercial and industrial accounts through its five national
                                                                                            DISTINCTIVE SOLUTIONS
offices. Mr. Haney attended Louisiana State University.                                      THE COMMERCIAL FINANCE SOFTWARE COMPANY

JW Reed, Jr. - Jhanira Capital Funding - Los Angeles, CA:
JW initially learned about the Factoring Industry through the ACFA
and working as a consultant. He began working with some of the                555 Chorro Street, Suite B            Tel. 1 805 544-8327
                                                                              San Luis Obispo,CA 93405              fax. 1 805 544-3905   email:
“better” funding sources and was encouraged to become a Factor. JW
furthered his knowledge of the Factoring industry through on-going IFA
Professional Courses, The Annual Conferences, and by working with
he earned his Juris Doctor degree. Prior to            U.S. Mr. Weinberg is also a Certified Public           We are looking forward to another successful year
founding Solomon and Weinberg LLP, a law firm           Accountant and practiced accounting with the          with the IFA. Please remember, this association
representing factors, Mr. Weinberg, co-founded         international accounting firm of KPMG (formerly        is here to serve you. Any suggestions and/or
and recently sold Platinum Funding Corp., a            Peat Marwick) and tax law with the law firm of         feedback would be greatly appreciated. E-mail us
factoring business operating throughout the            Paul, Weiss Rifkind, Wharton and Garrison.            at, or call 800-563-1895.

      STARTING A NEW FACTORING BUSINESS                                                             By Mark Weinberg

           A business associate who, after             Search Department and the Intake of Deals             I am heartened to have recently listened to
           successfully running the real estate        Department and I think about how best each            a speech to a small group by Stephen A.
           arm of a large hedge fund is, for the       should be organized. Each time, taking a new          Schwarzman, a co-founder of The Blackstone
           first time in his career at the age of       look at whether the way it was done for so many       Group and a Forbes 400 member, who tells
46, going out on his own.                              years is the way it should be done this time. And     the story of leaving Lehmann in 1986 with Pete
                                                       then wait for the phone to ring with a new deal       Peterson to found Blackstone. He spoke of the
He recently mentioned to me that it must be            - that first deal.                                     huge contacts he and his partner had and how
easy for me this time as a “serial entrepreneur."                                                            after sending out their announcements, the
Sounds almost like a “serial killer," but I guess      I should mention that this time I do have a           phone didn’t stop ringing with congratulations
I never thought of myself that way. This is after      distinct advantage. I am blessed to have almost       and good wishes. And when it did stop ringing
all, the fourth venture I am starting, but it always   60 business development officers (BDO’s) to            there was the eerie silence that is almost
seems new, always seems like the first time and         sell my factoring product. They are currently         deafening before one has closed the first deal.
it is forever an extremely daunting experience.        selling a loan product for an affiliate and my big     And then it comes, the first and the second
                                                       and most challenging job will be to educate and are in business.
                                                       motivate them to sell my factoring product.
I am in the throes of starting my fourth company
and my second factoring company after having
                                                       And so with a little bit of faith and a lot of hard
                                                                                                             i     Mark Weinberg is CEO of BLX Funding LLC.
co-founded, run and sold my first factoring                                                                  He can be reached at 646-723-5088 or email him at
                                                       work, the industry will just have to make room for
venture, Platinum Funding Corp., late last year.
                                                       one more factoring company. In time, I hope to
Surely it should be easier this time. I have so
                                                       look back with fondness on these days of hard
much more knowledge, a wealth of experience
                                                       work and doubt and the ever present question:
to draw from and contacts galore. And yet,
                                                       If I build it will they come?
while the days are packed with too much to do
and the seemingly endless feeling of making
no progress, it is the nights where ones mind
begins to run free. What if there are enough
factoring businesses out there? What if the
market has changed and what used to work no
longer will? What if no business ever comes?

The answer to all of the above questions is that
one must have faith - almost blind faith - that all
you have learned and done in the past that has
proven successful, WILL work again.

There probably are too many factoring
businesses out there and the market is ever
changing. One must react nimbly to the changes
because what worked in the past may not work
this time. But this is true in an existing business
as well as a new one and in a new business
there is less inertia keeping one moving in what
may be the wrong direction for the times.

And so, I come in each morning and take a
fresh look - at the Credit Department and the
     EX-IM BANK TRANSPORTATION FREIGHT FINANCE PROGRAM                                                                                By Christine Topoulos

           Have you ever heard of a government program that no one has           the lender will either apply to Ex-Im Bank for a working capital guarantee or
           used because no one knows that it exists? This is it. The Export-     use its delegated lender authority to commit Ex-Im Bank to the guarantee
           Import Bank of the United States created this program as a way        based on credit criteria established for this program.
           to placate the Maritime Administration (MARAD) into changing
           its requirement to use US cargo vessels for Ex-Im Bank financed        Ex-Im bank also requires the lender to gather information on the borrower
export transactions.                                                             proving that it is a US-based business, the business has existed for at least
                                                                                 one year and it has been profitable. Just like a traditional asset-based facility,
What Ex-Im Bank did not know is that it may actually have value to freight       owner guarantees are almost always required unless the company is widely
forwarders, logistics providers, shippers, and carriers. If your company         held (more than 5-10 owners). Collateral will be required in terms of UCC
provides services that are directly related to the export of commercial cargo,   filings on all export related receivables. In some cases, additional collateral
then this program may have value. The service invoiced to your export            may be required.
customer which may be eligible for financing can include:
  • Ocean, air, rail or truck freight                                            Each time the borrower wants to access the funding, the following documents
                                                                                 must be provided to the lender: (minimal program requirement)
  • Cargo and marine insurance
  • Crating and packing (warehouse fees for consolidating shipments)              1. Invoices to US customers with payment and shipping shipments clearly
  • Terminal fees
                                                                                  2. Bills of lading to prove shipments are taking place (no long-term
  • Port drayage                                                                     warehousing is permitted).
  • Forwarder and broker fees                                                     3. Borrowing Base Certificate no less than once a month.

The only exclusions are military and nuclear shipments and US Government         With sophisticated computer tracking systems in place for supply chain
impelled cargo costs. As always with government programs there is one            management, these minimal requirements should relatively easy to meet.
other important issue. All services must have at least 50% US content or the     For lenders, these computer tracking systems add to the ability to monitor
financed value goes down considerably. This is hard to accomplish on ocean        and audit for program compliance with minimal interruption to a borrower’s
freight where there are so few US flag vessels. Other carriers may offer more     daily freight management schedules.
opportunity such as through bills of lading to Canada and Mexico using US
trucking companies and air freight on US airlines. Here is an example, from      There are two things that this program does not include that are provided
Ex-Im Bank (with a few additions by the author):                                 for in the traditional Working Capital Guarantee Program – export-related
                                                                                 inventory and export related work in process (WIP). These could be important
                                                                                 and should be considered if a lender and borrower wish to negotiate inclusion
                                            90% Advance      Advance Rate        with Ex-Im Bank. A good case would have to be made, but Ex-Im Bank does
 Services Covered                           Rate with US     with non-US         have the experience and capability to deal with these concepts under its
                                            Flag Vessel      Flag Vessel         traditional program.
 Trucking in USA
                                $100,000          $90,000           $90,000
 on USA carriers                                                                 If a logistics company maintains supplies (pallets, boxes and packing
                                                                                 materials, etc.), there may be a case for requesting that this inventory also
 Insurance – US carrier           $10,000          $9,000            $9,000
                                                                                 be included in a revolving facility. For example, if exports are 25% of the
                                                                                 business, then the argument could be made that 25% of supplies potentially
 Ocean Freight                  $750,000        $675,000                 $0      should be considered eligible export related inventory for financing. Goods-
                                                                                 in-transit, where the client has not yet been invoiced but for which a contract
 Air Freight                    $750,000        $675,000                 $0      of shipment exists, is another area that this new program does not address.
 Trucking on USA Carrier                                                         This is especially important where labor is such a high content value of these
                                $750,000        $675,000                 $0      services and WIP can be a major issue for forwarders with limited cash flow
 to Canada or Mexico
                                                                                 options. Remember, asking for something extra could delay implementation
 Third-country Freight            $10,000          $9,000                 $0     of a facility.
 Services Provided                                                               Most borrowers under Ex-Im Bank’s working capital guarantee program
                                  $75,000         $67,500           $67,500      have revolving facilities that average from $250,000 to $5 million. With the
 in the USA
                                                                                 government guarantee, the lenders can now provide this type of financing
 TOTAL                        $2,445,000       $2,200,500          $166,500      to freight service providers. Sometimes the costs are less than traditional
                                                                                 factoring or asset-based lending with this guarantee in place. It is always
                                                                                 worth exploring with a lender.
These values can be for invoices generated weekly, monthly, quarterly, etc.
The facility is normally annual and it can be either revolving (most common)     For more information on this program, contact Ex-Im Bank at
or transaction specific (used on larger single project structures).               or (800) 565-3946 for the small business exporter’s assistance line. They will
                                                                                 direct you to a regional office or lender that may be of help.
A thorough financial review and application will be required by the lender.
To get started, the lender will want to review a receivables aging report
covering all export related transactions, to understand the terms of payment
offered to clients, and to calculate average days outstanding for these export
                                                                                 i        Christine Topoulos has 30+ years in international finance in industry
                                                                                 and banking and was Special Assistant to the Chairman of Ex-Im Bank (1993-
receivables.                                                                     1998). She currently works with small and medium size businesses and
                                                                                 commercial lenders in the Southeast. She can be reached at 404-370-1911 or
Based on this information as well as financial information on the borrower,
     THE BEST SALESPEOPLE RARELY MAKE GOOD MANAGERS                                                                     By Herbert Greenberg

         Do excellent salespeople make the best sales managers?              to which their performance is valued and appreciated. But under no
         Rarely, if ever. Here’s why.                                        circumstances make them managers without being absolutely certain
                                                                             that they have the proper personality qualities needed to manage. For
         To promote the star salesperson to a management position is         we have found that the personality qualities that are needed to make it
more often than not a total disaster.                                        as a top salesperson have absolutely nothing to do with making it as a
                                                                             top manager.
Yet, this practice has become almost institutionalized by many company
recruiters, who promise young people that a beginning in sales is a sure     Often, however, top salespeople have a romanticized view of climbing the
- and usually the straightest - road to a managerial career.                 corporate ladder of success and being promoted to the position of sales
                                                                             manager. To get to the root of this, here are a few questions we recently
Most frequently all that happens when a top salesperson is promoted to       asked a young woman who was highly successful in sales and wanted
management is that a company loses an outstanding salesperson and            to be promoted to management. After considering these questions, she
gains a mediocre, or worse, manager.                                         re-thought her position, and realized how much she really did like being
                                                                             a salesperson.
The misfortune is then often compounded by a secondary consequence:
the former salesperson who fails as a manager often will not - for reasons   We asked, are you ready to:
of pride - go back to the sales force of the same company. Instead, they
will be more inclined to leave the company - sometimes taking a sales job      • Act more like a coach than a player? Can you sublimate your own ego,
with a competitor for whom they end up taking business away from their          so that the people you are supervising get the glory of making all the
former employer.                                                                sales?

This creates a classic problem for executives who don’t know where else        • Handle detail, for there will be lots of it, including - monthly and
they can find sales managers, or don’t know how else to respond to a             quarterly reports and administrative record keeping, as well as keeping
star salesperson who wants the title and prestige that they associate with      after every salesperson for their reports and expense vouchers?
becoming the manager of a sales force.
                                                                               • Organize your own activities and those of your sales staff?
Our advice is to reward your good salespeople in the most imaginative
and suitable ways - provide them with a big, private office; increase their     • Induce your staff to act without forcing compliance? In other words,
commissions; have a dinner in their honor - anything to show the degree         do you have infinite amounts of patience?               CONTINUED ON PAGE 7
                                                                                                     Targeted Seminars for Secured Lenders
  • Plan and analyze - for countless hours - prospect lists, advertising
   programs, marketing plans - instead of dealing with people?

  • Attend frequent meetings, listening to the problems and complaints
                                                                                             THE LAW & BUSINESS OF
   of your salespeople and justifying their performance - and your own                           FACTORING
   - to your supervisors?
                                                                                             A NO-NONSENSE LOOK AT THE MYTHS
  • Handle such personnel chores as firing people you like or                                   AND REALITIES OF FACTORING
   recommending that they be fired?
                                                                                        Lenders’ Podium is pleased to present this conference for
Most top salespeople, after they really consider what they are asking                   Fall 2006 given by the Asset-Based Lending Industry’s
for, are willing to forego their notion of becoming a sales manager - if                Educator of the Year, Bob Zadek.
they know that their accomplishments will be recognized and rewarded
                                                                                        Bob has designed and teaches this powerful program to help
in some other meaningful way.
                                                                                        novices and seasoned factoring professionals, attorneys and
Interestingly, we have found far more people in the middle of a sales                   accountants build and strengthen their factoring know-how.
force who have turned out to be well-qualified managers. This is because                 Bob’s one of a kind program devotes considerable time to
they tend to be somewhat less driven to make conquests themselves,                      revenue enhancing techniques, and he provides a unique
and so are able to delegate better than their more strongly driven sales                documentation approach not available elsewhere.
colleagues. Also, they tend to be more tolerant of detail, and have
a more balanced ability to make decisions, and to handle work in a                      LAS VEGAS - November 16 & 17, 2006                       ne
                                                                                                                                            ter O
organized, systematic way. And, of course, they bring the added benefit of               BALLY'S LAS VEGAS                              Regis Early
knowing about the company’s products, clientele, sales force, problems,                 3645 LAS VEGAS BLVD SOUTH, LAS VEGAS           Mont ave
                                                                                                                                         and S !
advantages and policies.                                                                                                                    $300
                                                                                        REGISTER TODAY
However, in the final analysis, making it in sales and making it in
management have very little to do with one another.                                     To register or for more information including a detailed
                                                                                        brochure, contact us at 415-738-2286 or 888-346-9673
                                                                                        or You can also visit our
 i      Herbert M. Greenberg, PH.D., is President and CEO of Caliper. Direct any        website at:
inquiries to Brian Dorney at 609 524 1450 or

                                                                                   LEFCO IS HERE!
                                                                                    Your client needs an equipment loan
                    America’s Factors, Inc.                                        You are able to fund factoring only deals
             Is Pleased to Announce the Addition of
                                                                                      LEFCO funds the equipment loan
              Ginamarie Gaughan                                                     using your name and LEFCO’s money

                                                                                        MAKE MORE MONEY
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                & General Manager                                                  Equipment, real estate and receivable lending for factors

                                                                                                   Call LEFCO Today!
                         America’s Factors, Inc.                                             Scott Winicour • Ron Winicour
                        10430 Pioneer Boulevard                                              847-513-6867 •
                       Santa Fe Springs, CA 90670
                                                                                                 A Gibraltar Financial Company Since 1951
                            LEGAL FACTORS                                    By John A. Beckstead, Esq.
                       THE DEMISE OF OLD ARTICLE 9: JUNE 30, 2006
                       (OR SEPTEMBER 30, 2006, OR DECEMBER 31 2006, OR JUNE 30, 2007)

          The drafters of Revised Article 9 intended         concerning locations of collateral (although you                  financing statements. Financing statements filed
          that June 30, 2006, would be the last day          may want similar provisions for purposes of                       in Arizona under old Article 9 remain effective until
          of the transition from the old Article 9.          monitoring collateral).                                           June 30, 2007.
          In the states that play well with others,
          the transition will be smooth and will             If you haven’t done an in lieu filing, it is now too               The third problem is states who adopted an
complete the simplification of perfection of security         late. Instead, it is time now to call your attorney               effective date for Revised Article 9 different than
interests. Unfortunately, there are always a few             and figure out how much trouble you are in and                     July 1, 2001. The effective date was October 1,
states that don’t know the definition of the word             how to fix it.                                                     2001 for Connecticut and January 1, 2002 for
“uniform”, as in “Uniform Commercial Code”, that                                                                               Alabama, Florida and Mississippi. In these states,
make the process more difficult for all of us.                     The Non-Uniform States: Alabama,                             there is a period of time after June 30. 2006, when
                                                                    Arizona, Connecticut, Florida,                             old Article 9 remains in effect and filings made
         What Changes on July 1, 2006                                 Maryland and Mississippi                                 during these windows will have special issues.
            in the Uniform States?
                                                             There are several categories of problems in these                 The possible scenarios that can develop in these
Life will now be easier in the uniform states.               non-uniform states.                                               special situations are beyond the scope of this
Searches and documentation will be reduced.                                                                                    article. Risks are particularly high if the place of
                                                             The first problem is states with non-uniform cutoff                filing changes in Revised Article 9 from old Article
Until July 1, searches had to be done under the              dates. Instead of the final transition to Revised                  9. Remember also that under Revised Article
rules of both old Article 9 and Revised Article 9.           Article 9 occurring on June 30, 2006, it occurs on                9, perfection is determined by the law of the
This is no longer the case. Searches now only                December 31, 2006 in Alabama and Mississippi                      jurisdiction where the debtor is located (9-301).
need to be done (i) where the debtor resides if              and on June 30, 2007 in Arizona. On June 12,                      If you have filed financing statements in any of
an individual, (ii) for an organization that is not          2006, just eighteen days before the uniform June                  the non-uniform states, or have filed in another
a “registered organization”, at the location of the          30, 2006 cutoff, Florida enacted a law changing                   jurisdiction against a debtor located in a non-
debtor’s place of business if it has only one location       from the uniform cutoff date to December 31, 2006.                uniform state, you should review those filings with
or its chief executive office if it has more than one,        This means that in these four states the transition               your attorney and determine if any special actions
or, (iii) if the debtor is a “registered organization”, in   from old Article 9 will not occur on June 30, 2006.               need to be taken.
the state where the debtor is organized. Searches            Lenders must continue to search in these states in
at the location of the business/chief executive              the same way as was done prior to June 30, 2006
office for accounts and general intangibles, at all           until the later cutoff date.                                       i      Information provided in this article is general
the locations of inventory, and at all equipment                                                                               information only and not legal advice. Readers are
locations are no longer necessary.                           The second problem is states with a period of                     encouraged to consult an attorney for specific legal
                                                             effectiveness for a filed financing statement                     advice.
Provisions relating to these matters can now                 different than five years. In Arizona, a filing is
                                                                                                                               John A. Beckstead, Esq. is a partner in the Salt Lake
be deleted from loan documents. For perfection               effective for six years and in Maryland for twelve
                                                                                                                               City Office of Snell & Wilmer L.L.P. He can be reached
purposes, it is no longer necessary to have                  years. Maryland corrected this discrepancy by
representations, warranties and covenants                    adopting the standard June 30, 2006 cutoff for all

      The IFA has relocated to new offices.
              Our new address is:
     2665 Shell Beach Road, Suite 3
                                                                                A Leading Choice for Purchase Order Finance
                                                                                A LeadingChoice for Purchase Order Finance
      Pismo Beach, CA 93449-1778
          Phone: 800-563-1895                                          Through Hartsko purchase order financing, well-managed companies can grow sales take
                                                                    Through Hartsko purchase order financing, well-managed companies can grow sales and and take
                                                                        advantage profitable growth opportunities that are larger than they can support internally.
                                                                     advantage of of profitable growthopportunities that are larger than they can support internally.
             Fax: 805-773-0021                                                                        What Hartsko Does For You...
                                                                                                      What Hartsko Does For You...
                                                                              • • Evaluates transactions and looks beyond our client’s balance sheet.
                                                                                Evaluates transactions and looks beyond our client’s balance sheet.
                                                                                Grants you access to to working capital without having to sacrifice
                                                                              • • Grants you access working capital without having to sacrifice equity. equity.
                                                                                Provides approval in in days, weeks, or longer.
                                                                              • • Provides approvaldays, not not weeks, or longer.
                                                                                Works across many industries, company types, and purchase order order
                                                                              • • Works across many industries, company types, and purchasesizes. sizes.
                                                                              • • Supports both domestic and international transactions.
                                                                                Supports both domestic and international transactions.
          INTERNATIONAL                                                            Hartsko is a privately funded, closely held entity with a strong financial foundation
      FACTORING ASSOCIATION                                                          Hartsko is a privately funded, closely held entity with a strong financial foundation
                                                                                     and is able to react quickly to unique financing requests in trade. We are not
                                                                                        and is able to react quickly to unique financing requests in trade. We are not
                                                                                               a bank! We offer the speed and flexibility to get deals done fast!
                                                                                            a bank! We offer the speed and flexibility to get deals done fast!

      Serving the Factoring Community Since 1999                    Hartsko Financial Services, LLC
                                                                   Hartsko Financial Services, LLC 500
                                                                     520 Lake Cook Road, Ste. 450
                                                                   Lake Cook Road, Ste. 420 Deerfield,
                                                                     Deerfield, IL 60015
                                                                   IL 60015
                                                                     Tel: (516) 906-6682
                                                                                                                                                                 Richard Eitelberg, CPA
                                                                                                                                                                  Richard Eitelberg, CPA
                                                                                                                                                               Executive Vice President
                                                                                                                                                                     Tel: (516) 906-6682
                                                                                                                                                                      Cell: (516) 906-6682
                                                                                                                                                                    FAX: (718) 747-2226
       For questions or comments please contact                    TEL: (718) 229-0440
                                                                                                            w w w. h a r t s k o . c o m                              FAX: (718) 747-2226
                                                                     FAX: (847) 940-0878                                                                E-mail:
                                                                   FAX: (718) 747-2226                                                                    E-mail:
        Bert Goldberg at:
                                                                 IMPLICATION FOR CROSS-BORDER FACTORING,
     CAPITAL TAX ELIMINATION -                                   SECURITIZATION AND OTHER FINANCINGS                                 By Martin Fingerhut

       As announced in its May 2nd budget               and on-lent the proceeds to a Canadian            budget proposals accelerated the process, and
       speech, the federal government has               securitization trust that held corporate          the tax has been fully revoked retroactive to
       enacted legislation that eliminates              obligations.                                      January 1, 2006.
       the federal capital tax, retroactive to
       January 1, 2006. The elimination of this       These structures had to deal with a number of       As to provincial capital tax, each province has
tax will facilitate the cross-border factoring,       complex issues, including early amortization        its own regime. Some provinces have never
securitization and other financings of various         events under the Canadian securitization            imposed or have eliminated the tax, while in
classes of Canadian leases and interest-bearing       that did not match the events of default of the     others it ranges from .3% to .6%. However, a
receivables, both consumer and corporate,             corresponding cross-border loan, the Canadian       corporation will only be subject to a provincial
on a tax effective basis. This results from the       tax authority’s policies with respect to back-      capital tax if it has a “permanent establishment’
interplay between Canadian withholding tax on         to-back loan structures, entity level tax issues    in that province, which will generally depend on
the one hand, and federal and provincial capital      affecting the Canadian securitization vehicle,      the location of its head office, other business
taxes on the other.                                   and the desire to achieve off-balance sheet         locations, and certain types of employees and
                                                      funding.                                            agents (including some types of servicers). If a
It has long been recognized that Canada’s                                                                 servicer or other agent is an independent person
withholding tax regime creates a significant           While these structures allow corporate loans to     acting in the ordinary course of its own business
hurdle to financing leases or interest-bearing         be financed cross-border without withholding         (i.e. a true third party servicer), its presence in
receivables in foreign capital markets. Subject       tax, they have not been utilized for leases or      a particular province does not generally create
to a number of exceptions, a basic 25%                consumer assets. This stems from a “capital tax”    a permanent establishment of the principal.
withholding tax applies when interest or rent         imposed by certain provinces and, until recently,   Depending on the facts and circumstances of
is paid to a non-resident. Although this rate is      the federal government. This tax applies to the
                                                                                                          a particular transaction, it should be possible
frequently reduced under a bilateral tax treaty, it   liabilities and capital of most corporations, but
                                                                                                          to design a special purpose corporation so
rarely falls below 10%, and generally represents      is offset by an allowance for a corporation’s
                                                                                                          that it only has a permanent establishment in
too great an economic burden to justify off-shore     holding of loans made to other corporations. It
                                                                                                          a province that does not impose capital tax. By
financing.                                             is for this reason that capital tax must be taken
                                                                                                          doing so, it would be possible to structure a
                                                      into account when a Canadian special purpose
                                                                                                          cross-border financing of pools of leases or non-
In this regard, we have been able to structure        corporation issues notes to off-shore investors
                                                                                                          corporate loans (such as auto loans, residential
cross-border securitizations of interest-bearing      to fund a pool of leases or consumer loans,
                                                                                                          mortgages, credit card receivables and loans to
Canadian loans on a withholding tax-free basis        but can generally be disregarded where the
                                                                                                          REITS) on a basis that avoids both withholding
where the loans are designed to satisfy the           receivables comprise solely corporate loans.
                                                                                                          tax and capital tax.
three basic criteria of a statutory withholding
tax exemption:                                        The federal capital tax rate was originally set
                                                      at .225%. It has been declining since 2004,             i Martin Fingerhut, Blake, Cassels & Graydon
  • The borrower is a corporation or partnership      and was to have been eliminated in 2008.            LLP. He can be reached at 416-863-2638 or email
  of corporations - rather than an individual,        However, the early enactment of the federal         him at
  trust, or partnership with one or more non-
  corporate partners.

  • With limited exceptions (including acceptable
                                                                    We think one good
                                                                    We think one good
  events of default), mandatory repayments in                   turn deservesanother.
                                                                turn deserves another.
  the first five years do not exceed 25% of the
  amount of each loan.                                          you have clients who have outgrown their
                                                             If you have clients who have outgrown their
                                                           facility, it pays              them over to us.
                                                           facility,it pays twice to turn them over to us.
  • The loan structure and the parties’                            pay you a commission for all referred
                                                             We'll pay you a commission for all referred
  relationship reflect that they are unrelated
                                                               transactions we fund. Plus we’ll send you
                                                               transactions we fund. Plus we’ll send you
  and act at arms-length.
                                                                            business that comes our way,
                                                                 attractive business that comes our way,
We have been also able to adapt this long-term                                 falls outside our deal size.
                                                                     but that falls outside our deal size.
corporate debt exemption to structure off-shore
securitizations for trusts and short-term loans                      asset based facilities and factoring
                                                            We offer asset based facilities and factoring
without attracting withholding tax:                          products, from $250,000 to $100MM.
                                                             products, from $250,000 to $100MM. So So
                                                                   of turning       business, do yourself
                                                           instead of tur ning away business, do yourself
  • In one transaction, a Canadian special                                        call Robert
                                                                  a good turn and call Rober t Wagner at
                                                                    good turn
  purpose corporation purchased a revolving
                                                                          800.824.2075 x5427 or visit
                                                                          800.824.2075 x5427 or visit
  pool of demand floor plan loans, and issued
  five year tranched notes to US and European

  • In another, a Canadian special purpose
  corporation borrowed five-year funds from a                                 help beyond expectations.
                                                                     Lending help beyond expectations.
  UK asset-based commercial paper conduit,
     IFA TRAINING COURSES - PAST & FUTURE                                                                                                           P10

      The IFA’s spring training courses were once again a huge success.          We have five training courses planned for this summer and fall. They are:
      The spring 2006 courses received the highest reviews from the
      attendees.                                                                 August 10 & 11th - Presidents and Senior Executives Meeting - Hilton
                                                                                 Beach & Golf Resort in Los Cabos, Mexico.
    The best way to get a feel for the courses is to read some of the            This meeting, designed for senior executives of factoring portfolios, will offer
comments from the attendees:                                                     you a chance to network and discuss issues that are relevant to the operation
                                                                                 of your business. Mike Ullman, Esq. will be in attendance to answer any
Sales & Marketing - May 25 & 26th: presented by Tom Siska & Peter                legal questions that may arise. If you are a senior executive in charge of a
                                                                                 factoring portfolio, this meeting should not be missed. The meeting size is
  “This was a good program that both highlighted and reinforced things           limited, and we are close to being sold out. If you are interested in attending,
  I know as well as informed me of things I'd lost touch of.”                    we suggest signing up soon.

  “Excellent program. Learned a lot!!”
                                                                                 September 7 & 8th - Advanced Account Executive / Loan Officer
  “Tom and Peter are great speakers - being new to factoring, their              Training Course - Monte Carlo Resort & Casino, Las Vegas, Nevada.
  insight has really helped.”                                                    This is a new course designed as the second part of our highly acclaimed
  “Tom & Peter did an excellent job, I think this course is a "must do"          Account Executive / Loan Officer training course. This course is designed
  for all factors.”                                                              for experienced Account Executives and for those who have completed
                                                                                 our previous Account Executive / Loan Officer course. Our instructors for
  “Great presentation - Being very new to the industry, this helped              this course will be: Jay Atkins – Managing Director of FactorAssist, Darla
                                                                                 Auchinachie – Vice President of Liquid Capital of America and Mike Ullman,
  “Good seminar for those of us new to sales & marketing. I heard several        Esq. - Principal with Ullman & Ullman, PC.
  tactics I intend to implement.”
                                                                                 September 11 & 12th - How to Determine if Your Clients & Debtors
Account Executive / Loan Officer Training – June 8 & 9 : presented
                                                               th                are Lying to You - Training Class for Factors - Monte Carlo Resort &
by Jay Atkins & Darla Auchinachie.                                               Casino, Las Vegas, Nevada.
                                                                                 Greg Hartley spoke at the IFA’s annual conference to rave reviews. The most
  “Great Course. Instructors work together well.”
                                                                                 common comment was that Greg was great, but 1.5 hours with Greg was not
  “Recommend it for those who are new to industry and new employees.”            enough time. Greg will be spending time with Factors before this session so
  “They were great! Never boring…Very informative and detailed.”                 he can tailor his lecture specifically to the Factoring Industry. Greg’s expertise
                                                                                 as an interrogator first earned him honors with the United States Army. More
  “Excellent course - Very well presented.”                                      recently, it has drawn national level intelligence organizations and national
  “It is a realistic program that opens your eyes to pay attention to details.   TV to seek his insights about “how to” as well as “why.”
  Invites you to establish procedures to minimize your risk.”
                                                                                 September 14 & 15th - Transportation Meeting - Marriott Courtyard
  “I thought the speakers did an excellent job. Very receptive to questions,     Magnificent Mile - Chicago, Illinois.
  very thorough.”
                                                                                 This meeting will feature three different speakers and time for networking. We
  “Jay & Darla work very well as a team which makes these sessions               will begin with a welcome reception on Wednesday evening. Thursday will
  more lively and interesting. Jay, Darla & Mike were very informative.”         begin with a lecture on Credit in the transportation industry. Following that,
                                                                                 we will have a group discussion. The afternoon will feature a speaker from JB
Transportation Factoring – June 12 & 13th: presented by David                    Hunt speaking about state of the trucking/logistics industry and how they view
Jencks, Esq.                                                                     factors and the truckers they serve. There will be additional networking time
  “Great job! No reading from notes & PowerPoint - just rapid fire                in the afternoon. We will have a group dinner Thursday evening. Friday will
  information.”                                                                  feature a speaker discussing electronic billing, more time for discussion and
                                                                                 lunch. We will also have an exhibit area which will feature products relevant
  “Excellent job of presentation & in taking questions and delivery of           to transportation factors.
  direct answers.”
  "Very interesting - kept my attention."                                        October 12 & 13th - Risk Management & Mitigation - Monte Carlo
                                                                                 Resort & Casino, Las Vegas, Nevada.
  “An excellent job separating the legal side and the "real world" operation
                                                                                 Factoring is a risky business. We will spend two days discussing all of the
  / reality of how transportation factoring works.”
                                                                                 various aspects of risk and best practices to control those risks. Some of the
  “Excellent presentation - covered what I needed and more.”                     topics to be discussed are:
                                                                                 Portfolio Risk (Client Risk, Debtor Risk, Invoice Risk, Fraud Risk, etc.),
  “Mr. Jencks is an excellent speaker andan effective communicator. As
                                                                                 Disaster Recovery, Technology, Credit Insurance, UCC Insurance, Funding
  an attorney, he does a good job of balancing legal advice with practical
  business decision making.”
                                                                                 We have assembled a panel of experts for this course.
  “Good speaker, well organized, knowledgeable”
  “This guy is good: solid, pragmatic, informed, concise.”                       i         For additional information or to sign up for these training courses,
                                                                                 please visit our web site at
These courses will be offered again. Watch this newsletter or our web site
for additional information.

   TRAINING COURSES                                             Instant Liquidity, Immediate Cash
   The IFA is pleased to present this training
   course for the Factoring Industry:                                 $325,000,000
                                                            of Healthcare Accounts Receivable Purchased
   HILTON LOS CABOS BEACH & GOLF RESORT                   Medical Accounts Receivable Financing
   August 10-11, 2006
   Fee: $995 ($1095 for Non-IFA Members)                                 Target Market
                                                                     $100,000 to $5,000,000
   ADVANCED ACCOUNT EXEC/LOAN                                   No Deal is too Difficult for us.
                                                          For additional information on our on-going financing
   MONTE CARLO RESORT & CASINO, LAS VEGAS                       programs please do not hesitate to call us.
   September 7-8, 2006
                                                                            Jeffrey Adamsky
   Fee: $845 ($895 for Non-IFA Members)
                                                                           Account Executive
        $50 discount for previous Account                     
            Executive course attendees.                                       917.289.8319

   HOW TO DETERMINE IF YOUR CLIENTS &                     Northern Healthcare Capital, LLC
   DEBTORS ARE LYING TO YOU - TRAINING                                Henry Adamsky, Principal
   CLASS FOR FACTORS                                            333 Seventh Avenue, New York NY 10001
   September 11-12, 2006
   Fee: $595 ($645 for Non-IFA Members)
        $50 discount for attendees of the Advanced
            Account Executive Course.

   September 14-15, 2006
   Fee: $595 ($645 for Non-IFA Members)

   October 12-13, 2006
   Fee: $945 ($995 for Non-IFA Members)

            YOU CAN REGISTER BY:
        Phone: 800-563-1895 or 805-773-0011
        Fax:    805-773-0021
        Mail:   International Factoring Association
                2665 Shell Beach Road, Suite 3
                Pismo Beach, CA 93449-1778


       Serving the Factoring Community Since 1999
                FACTORING NEWS FLASHES                                                                                                  P12
          The Ninth U.S. Circuit Court          Czech factoring company O.B. Heller had net         Under Blue Bear Funding LLC’s second
of Appeals affirmed a district court’s          earnings of Kc63.6m last year, which represents     amended plan of reorganization,
disgorgement order against two investment       a decline of six percent against 2004. The firm      administrative, tax and priority claims
firms and their principal in an action brought   indicted that this was caused by a greater          would be paid in full, court documents
by the SEC, finding that the operations         willingness of commercial banks to provide          said. Unsecured claims of $4,000 or less
of those firms was entirely fraudulent and       loans which slows the factoring market growth       would be paid at 20 cents on the dollar.
that all proceeds obtained from investors       down.                                               Other unsecured claims would be swapped
and investments constituted “ill-gotten
                                                Czech News Agency                                   for stock. For every $1,000 in claims, an
gains.” From 1997 until October 2003,           May 16, 2006                                        investor would be eligible for one share of
J.T. Wallenbrock & Associates and Citadel
                                                                                                    a reorganized Blue Bear. Equity holders
Capital Management Group, business
entities organized and controlled by Larry      The U.S. Department of Justice’s U.S. Attorney’s    would be wiped out. Silver Mountain
Osaki, raised nearly $253.2 million from        office for the Southern District of Florida issued   Financial LLC, Business Resources LLC
thousands of investors through the fraudulent   the following press release: “James W. Long,        and the independent factoring companies
sale of unregistered promissory notes. Osaki    49, of Miami, Florida, and Cash Today USA, Inc.,    that passed money from investors to Blue
and his associates misrepresented to the        a Florida corporation, were sentenced today in      Bear would have the validity and size of their
investors that the proceeds from the notes      Miami federal court by United States District       secured claims determined by the court.
would be matched by Wallenbrock and used        Court Judge Richard Goldberg. Defendant             Daily Deal/The Deal
to purchase accounts receivable of certain      Long and Cash Today USA, Inc., were each            June 26, 2006
Malaysian companies. The Ninth Circuit then     found guilty by a jury on March 9, 2006, on one
found that the entire Wallenbrock/Citadel       (1) count of conspiracy to commit mail and wire     Eurofaktor, which has focused on factoring
enterprise lacked legitimacy.                   fraud.” According to the evidence presented         services for big companies only, is launching
Class Action Law Monitor                        at trial, Long and others solicited investors       a new strategy in which they will target small
April 30, 2006
                                                around the United States through the internet       and medium sized enterprises. In 2009 over
                                                and telephone to invest a minimum of $10,000        30 per cent. SMEs are to increase to 20 per
Accord Financial Corp. (TSX - ACD)
announced that net earnings were a first         in so-called Accounts Receivable Purchase           cent, while services for big companies will
quarter record high increasing by 49% to        Agreements, which purportedly offered to pay        fall from 80 per cent this year to below 50
$1,691,215 compared to $1,133,901 in            36-42 % interest a year on the investments.         per cent in 2009.
the first quarter of 2005 on substantially       During April, May, and June 2001, more than         EASTBUSINESS.ORG
                                                100 investors invested over $2,100,000 to           June 29, 2006
increased factoring volume and revenue.
Factoring volume, also a first quarter record,   Cash Today.
rose by 16% to $371 million in the quarter      US Fed News                                         Distinctive Solutions Corporation, a software
compared to $320 million last year. Revenue     May 24, 2006                                        provider to the factoring industry, was
increased by 23% to $7,213,759 compared                                                             acquired by 3i Infotech Inc. (“3i Infotech”)
to $5,867,576 last year. Revenue rose at a      CIT Group has acquired the German operations        and effective June 29, 2006 Distinctive
higher rate than volume as a result of an       of Enterprise Finance Europe, a major player        Solutions Corporation was merged into 3i
increase in proportion of higher yielding       in the European factoring market. The Frankfurt     Infotech Inc.
recourse factoring and somewhat higher
                                                based company will operate under the name           June 29, 2006
                                                CIT Commercial Services (Europe) GmbH.
Canada NewsWire
                                                Furniture Today                                     The Russian Federation Duma is considering
May 3, 2006
                                                May 29, 2006
                                                                                                    an amendment to the Civil Code that will
Colombia’s largest bank Bancolombia                                                                 resolve an inconsistency in Russian law.
(NYSE: CIB) purchased 55.61% of the             Hungary’s factoring association estimated that      Pursuant to the RF Civil Code, a company
outstanding shares of local factoring company   factoring volume increased by more than 40%         must hold a factoring license in order to
Comercia for 24.6bn pesos (US$10.5mn),          in 2005 to HUF 477.4bn                              engage in factoring. However, RF Law
The bank said it expects to acquire the         Hungarian News Agency (MTI)                         No. 128-FZ “On Licensing Certain Types
additional 38.96% of Comercia’s outstanding     June 8, 2006
                                                                                                    of Activities” does not require factoring
shares currently held by Patrimonio
                                                                                                    companies to apply for such license,
Autonomo Textiles Fabricato Tejicondor.         Chile’s factoring industry association Anfac        therefore no agency exists to issue factoring
Business News Americas - English                plans to issue a one to four year $40million
May 9, 2006
                                                                                                    licenses. Due to this inconsistency in the
                                                securitized bond by September. Anfac’s idea is      law, participation in the factoring market has
                                                to securitize some of its associates’ portfolios    been limited to banks, which may trade in
                                                after voluntarily submitting themselves to a risk   accounts receivable under the terms of their
to launch factoring operations in Vietnam.
This would thus be the first Japanese bank       classification by local ratings agency.              banking licenses.
to develop such a business in Vietnam.          Business News Americas - English                    Mondaq Business Briefing
                                                June 15, 2006                                       July 1, 2006
Asia Pulse
May 16, 2006
COMMERCIAL FACTOR JOB OPPORTUNITIES                                                                                                     P13
Distinctive Solutions Corporation                                          Liquid Capital Corporation
Distinctive Solutions is a Software Company for the Commercial
                                                                           Factoring Advisors and
Lending Industry. Since 1982, we have been providing the Industry’s
leading software with over 600 systems installed worldwide. We             Business Development
have recently merged with 3i-Infotech a large International Software       Positions Available
Company. This is an exciting time for us and we are looking for an
outgoing individual to join our team.                                      Liquid Capital, an industry leader in factoring is rapidly growing
                                                                           across North America. We currently have over 50 offices and plan
Software Consultant: The ideal candidate will have extensive               to open 50 more by year-end.
knowledge of the Factoring Industry, self-motivated, and enjoys
being a part of a team. The Software Consultant will provide               Join our team of Factoring Professionals and use your skills to
Operations and Software Training, (on and off site) and Customer           support our franchisees in all aspects of the factoring arena, such
Support. Located in San Luis Obispo, California; this is a desirable       as sales or credit and operations. We are looking for special people
place to live.                                                             who enjoy helping others develop their talents in this exciting
Please submit resumes to
                                                                           Liquid Capital is centered on providing our franchisees with
                                                                           training and support to make them successful. Our franchisees
Commercial Transportation Factoring                                        are accomplished in their previous careers and bring a high level
                                                                           of professionalism to the business and posses a desire to expand
                                                                           their own market share in factoring.
Position Available                                                         All inquires will be kept strictly confidential.

A new factoring company, with concentration on the transportation          Please send resume to:
industry, is looking for a saleperson with some experience. Great          or call Darla Auchinachie at 888-547-5544
opportunity for growth.

Please send resume to:
or call Ellie Tahoor at 818-349-5177
                                                                          Bibby Financial Services

Gulf Coast Business Credit                                                Bibby Financial Services is part of the Bibby Line Group, a global
                                                                          company with nearly 200 years of history. Our business involves
GCBC is seeking qualified candidates for the following positions:          providing a range of financial services to the small and medium sized
                                                                          business market. Bibby is growing its presence in the US extensively
Receptionist – Houston, TX                                                and is looking to ensure that the offices are well supported.
                                                                          We are currently seeking applications for:
• Answering Multi-line telephone system.

• Greeting clients/customers.                                             Account Executives to manage multiple client relationships
                                                                          (Factoring) making daily discretionary advances against accounts
• Distributing mail.                                                      receivable collateral.
• Some data entry.
                                                                          Underwriting Coordinator to liaison between business
• Excellent benefits including ESOP and 401k.                              development and operations to facilitate the loan closing process
                                                                          for credit approval to funding.
Qualified Brokers
                                                                          Offices in Florida, Illinois, California & Texas
• Among highest commissions in the industry.
                                                                          Benefits include healthcare, vested 401k plan and a progressive
• Experience benefit of lower cost Bank funding.                           and open working culture.
• Quick turnaround.
                                                                          To learn more please visit:
• Deals from $50,000 to $5,000,000.                             

Call Allen Frederic at 504-412-2029                                       Please submit your resume for consideration to:

i        To list your company's job opportunities in the classified section of this newsletter please contact: International Factoring
          Association at: 800-563-1895, fax: 805-773-0021 or by email: or visit our website:
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2665 Shell Beach Road, Suite 3
Pismo Beach, CA 93449-1778

                                 THE COMMERCIAL FACTOR
                                 Newsletter for the Factoring Industry

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