Articles about
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Funding Center, Inc. and Dr. Anthony F. Cicone.
Broker hits the jackpot with retail installment contracts
Monterey Broker of the Year Qualifies for Million Dollar Club
MDC Class of 2003 Represents the Broad Scope of the Cash Flow Industry
Broker hits
the jackpot with
retail installment contracts
by Judy Arndt 1/1/2002
For many
years, retail installment contracts have been touted as a
lucrative market for cash flow professionals to explore,
although because of the supposed complexities involved, very few
brokers pursue them.
Anthony Cicone wasn’t looking for retail installment contracts.
They came looking for him. It started, he explained, when
someone called him to find out if he would factor such
contracts. While he could not find a traditional factor
interested in the project, he did find a funding source willing
to fund the contracts for his client
The installments were essentially unsecured “They relate to
programs that open the door to college education for prospective
college students by providing an array of services for them,”
Cicone explained “The company helps them to prepare for
scholastic exams. It does major college searches and career
searches, and it helps them with financial aid planning. It also
helps them find sports and/or academic scholarships.”
The company first contacted Cicone two years ago. “I had them
approved by another
funding source and had
everything in place and
subsequent to that they
acquired or merged with
another company and had
a new management team in
place. The new managers
decided not to use the
funding.”
Between then and
sometime later, Cicone
became familiar with
Monterey, a funding
company that has worked
for several years with
cash flow brokers. “I
called back a few months
ago,” said Cicone, “and
learned that the company
was once again
interested in financing.
I contacted the original
funding source, but they
said no, so I went to
Monterey. They had
questions, but we
eventually worked
through it.”
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The advantage Cicone has
found in working with
Monterey is that
Monterey does more than
just purchase the
installment contracts.
It also services the
contracts and, if
necessary, “has the
potential to become a
three part deal as a
collection agency,”
Cicone said. He is paid
separate commissions on
each element of the
deal: the purchase of
the contracts, the
servicing and, if
necessary, the
collection services. He
receives a percentage of
the profit on each
contract and a separate
percentage for servicing
of the contract.
Cicone’s responsibility
in developing the deals
was, he says, “marketing
the service. I put up a
nice Web site and
answered preliminary
questions. Monterey did
a good job of getting
the client the money. At
first the time table
wasn’t working out, but
Monterey got them the
money when they needed
it.
With the client doing
about $1 million in
funding each month and
Cicone receiving a
percentage of that
amount for his first
commission, he’s very
pleased with the amount
of money he’s making,
especially after adding
the commission he
receives for the
servicing of the
contracts.
Needless to say, he is
looking for additional
deals like this one but
acknowledges the biggest
road block is that many
of the companies and
organizations he has
called already have
their own financing plan
in place. Factors can be
some of the best sources
for referrals, Cicone
said, and being able to
name a referral source
gives the broker
credibility.
“I have a friend, and he
and his dad have a
business where they sell
these refuse trucks.
They are interested in
doing some leasing, so I
am looking more in that
direction since I have a
contact right in place.
I would like to do more
of these consumer
contracts, however,”
Cicone said. “It is a
very productive market
to work".
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