in the Cash Flow Industry is an option of which many people, unfortunately, are not aware.  The funding tools of the Cash Flow Industry have been available to “big” business for years but are only recently becoming available and known to the small business owner and I am excited to be able to be a part of that!

But what exactly is the Cash Flow Industry?

We can break it down and start by defining cash flow — which is the flow of cash through a business or household (i.e. depositing a paycheck and/or payment into your/the business account and paying the bills). 

In business, cash flow coming in is usually referred to as revenue and going out is referred to as expenses.  For an individual or household, cash flow is income coming in the front door in time to pay bills out the back door. 

But, it all boils down to money coming in and then going out equals cash flow.  And, every household and business manages cash flow on a daily basis.

So that, the Cash Flow Industry is a marketplace which helps businesses and individuals manage their daily cash flow needs.  Its primary goal is to get cash into the hands of those who want or need it by leveraging liquid assets they may have through the buying and selling of future “income streams” they may own.

An income stream is a “future” paymnent or series of payments (i.e. a financial obligation or debt that one party owes to another).  The financial obligation is reduced to writing in a legal document.  It is the “payment(s)” that make up the income stream being bought and sold but it is also commonly referred to as the debt instrument or cash flow instrument. 

I like to say it is any piece of paper which has a dollar value attached to it and some of the ones which are most easily recognizable to many are lottery winnings, contracts, invoices, leases and mortgages.

There are many more, however — at least 60 cash flow “income streams” (debt instruments) being bought and sold today in the cash flow industry – most of which are privately held (i.e. owed to a private individual or business rather than to a bank or other financial institution). 

For example, if you sold your home to your daughter and financed it for her, your daughter would then make her monthly mortgage payment to you rather than to a bank.  And, in this example, the income stream created by your daughter to you is “privately” held, because you are a private individual, not a bank or mortgage company.

We’ll discuss the 60 different income streams in much more detail later on but for the time being to perhaps help you remember some of them you might realize that they are basically business-based, collateral-based, insurance-based, contingency-based, government-based or consumer-based income streams.

I always welcome comments!

Thanks for stopping by; Debra, YCFC

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