Learn How To Become A Financial Broker
Many emerging entrepreneurs try to set up their ideal careers by looking for business opportunities that allow them to work from home, do what they love, and draw a decent profit on top of it all. For some, that means opening a niche retail store online. For others, low overhead franchises and travel agencies seem like the way to go. However, many overlook the revenue potential of becoming a commercial finance broker.
An Introduction To Commercial Finance
Commercial finance exists as a means to get business owners the funding they need, quickly, efficiently, and on terms that are amenable to all parties involved. With banks employing more conservative lending policies (fewer than 20% of all business bank loan applications are approved, and that percentage is even lower for new businesses without an established financial history) business owners are relegated to finding working capital elsewhere. Often, entrepreneurs end up putting themselves in dire financial straits by trying to fund their businesses out of pocket by using personal credit cards, leveraging their homes for a second mortgage, and selling off their possessions. In order to prevent this from happening, and to give potentially profitable entrepreneurs a chance to make their dreams a reality, commercial finance professionals have designed a number lending programs and products for business owners to use to launch and grow their operations.
What Is A Financial Broker?
In general terms, a financial broker acts as an intermediary between business owners and funding they need. A financial broker brings entrepreneurs and lenders together to work out an agreement with the various lending products at their disposal. Once an agreement is reached, the financial broker takes away a percentage of the total agreed upon amount (usually written into the agreement), plus any recurring fees (residual income) once the contract is signed. In many cases, commercial financial brokers take away from just a few deals what many business owners being in over multiple years.
Financial Brokers Do More Than Just Work With Loans
Financial brokers also help customers with things such as leasing specialized equipment, acquiring property, opening lines of credit, purchasing other businesses, refinancing loans, debt consolidation, collecting payments from customers, opening franchises and much more. People look to finance brokers because they have the knowledge of alternative financing products that banks cannot offer due to their own limitations. These commercial finance brokers work with people to assess their needs and present the right solutions to help them reach their goals.
Do Finance Brokers Need To Be Part Of A Large Firm?
It is a common misconception that finance brokers are members of large firms that handle business contracts. This role is often confused with a bank loan officer, who assesses business plans, collateral, and other criteria as part of the approval process on loan applications. A financial broker often works out of a home office – usually using nothing more than a computer, dedicated phone line, and a web site. Finance brokers meet with clients (business owners) who are looking for funding to launch or expand their businesses, but for whom traditional bank loans are either inaccessible, or undesirable because they don’t want to take on any extra debt.
Do Financial Brokers Need Any Special Training?
As with any field, there are people who have zero training who manage to “get by.” Financial brokers who simply act as referral agents to lending sources stand to make a few hundred to a few thousand dollars a year. However, a finance broker with knowledge of how various lending products work, how to assess financial statements to discern whether or not a business owner is a strong candidate for financing, and at least a cursory understanding of the underwriting process have the potential to make a six figure income in the first year alone, with residual streams of income from financial deals.
Financial Brokers Live The Life They Want
Toward the beginning of this article, we talked about people deciding to go into business by doing what they enjoy. Often times, people find themselves soured on their passions because they find themselves working too hard just to make enough sales to sustain the operation. Financial brokers, on the other hand, have very little overhead, so most of what they make from each deal is pure profit. By getting all parties to reach a financial agreement, finance brokers can walk away with enough money to spend their downtime actually doing what they love, rather than spending long hours trying to figure out a way to make their passions profitable.
Finance Brokers Are Unaffected By Recessions
People always need money. In a healthy economy, business owners need extra working capital to grow or expand their operations. In a recession, they need funding to launch or sustain their businesses. In both cases, finance brokers act as the gatekeepers between business owners and the capital they need. What this means is that even if (and when) the economy experiences a downturn, financial brokers will have lucrative business opportunities available to leverage for a profit. The same cannot be said for many other industries, including banks and credit unions.
Learn How To Become A Commercial Financial Broker
The Commercial Capital Training Group (CCTG) gives people the training and tools they need to start their own finance broker business. On top of the in-depth knowledge of the financial market and lending products, CCTG will put you directly in touch with a network of lenders and financial professionals, with over 80 years of experience in the industry. CCTG goes the extra mile and offers support even days a week, because we understand that even with all of the training in the world, there are situations that arise when running your own business as a finance broker, that sometimes require the assistance of people who have been in similar situations. The Commercial Capital Training Group offers a recession-proof business model with access to myriad lending products and programs – giving motivated entrepreneurs access to make nearly limitless revenue simply by getting business owners and funding sources to work out an agreement.