|
Career Opportunities as a
Broker in the
Factoring and Alternative Commercial Finance Industry
A career as a consultant or broker in
the factoring and alternative commercial finance industry offers an
exceptional opportunity for those armed with the necessary product
knowledge and sales capabilities to take advantage of the industry's
almost legendary compensation system of residual commissions and
finder's fees. Productive professionals will enjoy extraordinary
income potential, inherent job security, and the freedom and flexibility
that comes with being your own boss. As an industry consultant, the
services you offer are constantly in demand by individuals, small
business owners, and large corporations alike. Below are some common
questions asked by those initially exploring this unique vocation.
Q. How difficult is this
career to enter and what qualities are necessary to become an industry
broker?
A. As a vocation, the industry is relatively simple to
enter since most begin their consulting career from the convenience of
their home with a home-based office. In the current recessionary
environment with small business struggling to find financing options,
factoring and commercial loan brokering can be a gold mine for well
trained and well prepared individuals.
Yahoo Hot Jobs recently reported factoring as
one of the Top 10 Hot Professions for 2009!
Understand that being a
factoring and alternative commercial finance broker is a sales career with earnings as a function of your
sales ability. Sales is a numbers game. Do you have basic
marketing skills and can you network with others? Do you have good
communications capabilities and are you comfortable making presentations
to business owners? Can you look and dress the part of a
high-profile professional? Do you have the necessary capital for
living expenses while you launch your career? Answers to these
questions will, to a great extent, determine how difficult this industry
will be for you to enter.
Q. What is a typical
successful broker profile?
A. Considering the skill level necessary for industry
success (marketing skills, dress, communications skills, etc.), those
that come from similar sales-oriented professions tend to have very high
success ratios in the factoring and alternative commercial finance
industry. This will include; mortgage brokers, insurance agents,
ex-stockbrokers, business brokers, manufacturers reps, etc. Bear in mind
that the industry
is one of considerable prestige and requires some "polish". Can
anyone succeed? Yes! But some will have to work much harder
than others with some of that work involving the development of good
communications skills and redefining their personal image. Making
the transition from assembly line worker to the "Wall Street look" can
be difficult. Some promoters sell this career as easy. It is
for some, but can be very difficult for others with no previous professional
sales experience to call upon.
Q. Can this career be entered
on a part-time basis while I continue to work my normal 9-5 job?
A. Yes, but you will need to either have or develop a "marketeer's"
mindset for direct-mail based marketing. Since you will not be able to
attend appointments with business owners or network effectively, you
will primarily need to focus on direct marketing and be a "lead generator".
You will be much more dependent on
prospect list building, direct mail and e-mail marketing to those lists.
Most importantly, you will need to build database marketing as a
strength. Complete training in these areas and a professionally
designed lead generating website is provided with our database
management system, FactorMax Guerrilla.
Q. What part does Datamax
play in assisting to develop my career?
A. First, you must understand the role of Datamax.
As the developer of the FactorMax Guerrilla Business
Development System, Datamax is a provider of marketing assistance
and not a primary industry trainer. In fact, training in the
industry has been very difficult to obtain in the past although
FactorMax Guerrilla, with its 400 page training manual, does provide a certain amount of training as you
learn the system. DMS also publishes an excellent primer for new
brokers called
The Broker's Guide to Factoring which is available
form our web store for $99.95..
Q. Where can I get additional
information about this career to determine if this is a career
opportunity for me?
A. Without question, one of
the best sources of education for new industry brokers is the
IACFB
or International Association of Commercial Finance Brokers.
Though this organization is primarily for "seasoned" industry
professionals, the many industry product presentations and monthly
tele-confernces made by its lender / members
provides independent brokers with a wealth of information on factoring,
asset-based lending, purchase order finance and virtually
every other product area in alternative commercial finance.
Q. How are
brokers compensated in the factoring industry?
A. In the factoring industry, brokers receive a
percentage (usually 10-15%) of the fees earned by the factor each month
on any account referred by the broker. In almost all cases, such
residual commissions are paid for the life of the account (as long as
the client uses the factor's services). Former stockbrokers and
insurance professionals entering the factoring industry will be familiar
with such "trailing" commission structures that allow brokers to build
"books" of business that provide an attractive income each and every
month. Such residual commissions are also common in purchase order
finance. Other areas of the industry such as asset-based finance,
equipment leasing, and merchant cash advances pay points at closing.
Q. Do I need a
license to become an industry broker?
A. In general, no license (other than a customary business
license) is required to operate as a commercial finance consultant in
factoring and asset-based finance.
Q. Are there any
training schools which I can attend that will help to prepare me for an
industry career?
A. Yes. Several schools exist that will assist you
becoming an industry broker. These are considerably more expensive
($5,000 to nearly $15,000) than home study, however. In almost
every case, those seeking an industry career should spend some time as
an IACFB
member ($175.00 per year) and utilize its training opportunities to make
certain that the industry is the right one for you. You may find
you need nothing more.
|
