Guide To Understanding Commercial Finance
The world of commercial finance can seem really daunting. One envisions high stress situations and vast amounts of money changing hands between parties that have more knowledge about banking than any of us will ever learn in a lifetime.
The truth of the matter is that commercial finance is not as complex as people make it out to be, and those who work in the world of business financing have made very lucrative careers for themselves without spending years immersed in the banking industry.
How Does Commercial Finance Work?
Commercial finance works off of the simple premise that business owners – both emerging entrepreneurs and those with established companies – need working capital. Most banks cannot meet the needs of business owners, due to their own internal restrictions on how much money they can lend, or because the processing time for loan applications takes much longer than the window in which business owners need to have their money. As it stands, less than 40% of all business loan applications are actually approved, which leaves many entrepreneurs looking for alternative solutions to meet their business financing needs.
Commercial Finance Entrepreneurs
When business owners cannot get the working capital they need through conventional means, they seek out other people who specialize in commercial financing. Commercial finance professionals are usually entrepreneurs, themselves, and understand the needs of business owners very well. They act as facilitators, by putting business owners in touch with lenders in order to work out a business financing agreement that benefits everyone. Once an agreement is reached, the commercial finance professional usually takes a small percentage as a fee, plus any residual payments that have been worked into the contract.
What Is Needed To Work In Commercial Finance?
Most people who get into business and commercial financing either desire financial independence for themselves or they have found that they are really adept at assessing the needs of others and figuring out solutions to meet those needs. In addition to those basic drives, commercial finance qualification includes an understanding of accounting, the various types of alternative lending methods, and some knowledge of different business fields in order to better understand clients’ needs.
Low Investment, High Profits
One of the biggest misconceptions about commercial financing is that it is a high-stress business field with little downtime. The truth is that commercial financing requires little overhead, and be run from the comfort of home, and only needs as much time as you are willing to put into it. As stated above, many people get into business financing in order to achieve financial independence. After a few successful deals between business owners and lenders, most people in the commercial finance field see more money in a few paychecks than their entire yearly salary was working for previous employers. This translates to more freedom to enjoy life, and as much downtime as you want to have in between deals. Commercial financing lets you be your own boss, most people in the field build up a healthy portfolio of clients and referrals for continuing business after the first few contracts are finalized.
Commercial Finance Training
If you like the idea of helping others, and bringing home large paychecks in the process, the Commercial Capital Training Group (CCTG) give people all of the training they need in order to run their own commercial finance business. CCTG covers everything from accounting to best business practices for entrepreneurs – even lending methods and how to ensure you get paid for your services. CCTG will introduce you to their panel of lenders, and CCTG offers support, 24 hours a day, seven days a week. This means that if you are experiencing some turbulence along the way to reaching an agreement, you can speak with one of our staff members for one-on-one mentoring. The Commercial Capital Training Group has members with over 75 years of professional experience in the world of business finance, and they will provide all of the tools you need in order to open and run your own business and help you to achieve that dream of financial independence. If you want to start working for yourself in order to be successful and live life on your own terms – plus makeup to six figures per paycheck with residual income on top of it all – look into the world of commercial finance and see how CCTG can help you make your dreams a reality.