How do you become a Factoring broker?

Answer 1

Factoring Brokers are independent consultants who source business for factors and are paid a percentage of the fees earned. Typically, such "commissions" are very attractive and paid on a residual life-of-the-account basis. This is a business of consulting (you will work with and educate small business owners) and as such, you need to build your factoring product knowledge to succeed. As a popular method of commercial finance, factoring is a relatively simple process where invoices of a business are purchased at a small discount to face value by a finance company (known as a factor). This speeds up cash flow since the business will no longer have to wait 30-90 days for its customers to pay. Industry Factoring Brokers act as middlemen between the factor and the business owner. New brokers entering the industry will also need to sharpen their networking skills so they can build referral relationships with accounting professionals, bank lending officers, and others. They will join Chambers of Commerce and organizations where they can network effectively. The most accessible (and affordable) factoring broker training and marketing support is found through the IACFB or International Association of Commercial Finance Brokers.