HOME

FREQUENTLY ASKED
qUESTIONS

 

Business Solutions
Company News
FactorMax Systems
Products / Online Store
Web Site Design
Training Solutions
Technical Support
DMS Partners
FAQ
Contact DataMax
 

Factoring...
Hot Jobs (Yahoo) Reports Factoring as one of the Top 10 HOT Professions for 2009!

We've been telling you and now Yahoo Hot Jobs confirms that factoring is one of the top ten professions for 2009.

 Take advantage of the recession.  There has never been a better time to enter the industry. 
See the Yahoo Report

 

t

About the Business of Brokering in the Factoring and Alternative Commercial Finance Industry

   

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.