THE CASH FLOW INDUSTRY IS THE BUYING AND BROKERING OF A PRIVATELY HELD INCOME
STREAMS IN A SECONDARY MARKET. THE FLOW OF CASH THROUGH A BUSINESS OR HOUSEHOLD.
IN BUSINESS TERMS, CASH FLOW INVOLVES THE FLOW OF CASH INTO A COMPANY IN THE
FORM OF REVENUES AND OUT OF THE COMPANY IN THE FORM OF EXPENSES. AN INCOME
STREAM EXISTS WHENEVER SOMEBODY RECEIVES PAYMENTS FROM SOMEBODY ELSE. WHEN THE
PERSON WHO RECEIVES THE PAYMENTS IS A PERSON OR A BUSINESS, IT'S CALLED A
PRIVATELY HELD INCOME STREAM. CASH FLOW SIMPLY MEANS GETTING INCOME IN THE FRONT
DOOR IN TIME TO PAY EXPENSES OUT THE BACK DOOR.AN INCOME STREAM IS SIMPLY ANOTHER WORD FOR A FUTURE PAYMENT OR SERIES OF PAYMENTS ESSENTIALLY, AN INCOME STREAM IS MONEY THAT ONE INDIVIDUAL OR A BUSINESS IS RECEIVING FROM ANOTHER INDIVIDUAL OR BUSINESS. AS A RESULT, OF A DEBT FOR THAT OFTEN REFER TO INCOME STREAMS SPECIFICALLY AS DEBIT INSTRUMENT. LET'S GET SOME BACKGROUND ON WHERE THE INDUSTRY CAME FROM. FEWER PEOPLE ARE EVEN AWARE THAT THE CASH FLOW INDUSTRY EXISTS. THERE ARE MORE THAN SIXTY-THREE DIFFERENT DEBT INSTRUMENTS AMOUNTING TO OVER 5.8 TRILLION OF INVENTORY AVAILABLE FOR TRANSACTING IN THE U.S. ECONOMY.
THE CASH FLOW INDUSTRY HAS ITS ROOTS IN TWO SEEMINGLY UNRELATED METHODS OF FINANCE: OWNER FINANCE AND FACTORING. THESE TWO METHODS OF FINANCE INFLUENCED THE DEVELOPMENT OF THE CASH FLOW INDUSTRY. OWNER FINANCING ORIGINATED IN THE EARLY TWENTIETH CENTURY, AS A METHOD OF ACCELERATING THE SALE OF REAL ESTATE. IN AN OWNER FINANCED SALE, A REAL ESTATE SELLER ACCEPTS A PROMISSORY NOTE AS A PORTION OF THE PURCHASE PRICE. THE NOTE IS THEN SECURED BY THE REAL ESTATE BEING SOLD. FACTORING IS ALSO CALLED ACCOUNTS RECEIVABLE PURCHASING.
WHEN A BUSINESS SELLS A PRODUCT OR SERVICE TO ANOTHER BUSINESS, IT SENDS THE SECOND BUSINESS AN INVOICE IN ORDER TO COLLECT THE MONEY DUE. THE FIRST BUSINESS CAN EITHER WAIT FOR THE INVOICE TO EVENTUALLY BE PAID, OR IS CAN SELL THE INVOICE TO A THIRD PARTY FOR A REDUCED AMOUNT THAT'S CALLED FACTORING. BUSINESSES USE FACTORING TO STIMULATE CASH FLOW TRANSACTIONS..