Your Commercial Finance Broker Business Needs PO Funding and Factoring as Product Offerings
Table of contents
- Your Commercial Finance Broker Business Needs PO Funding and Factoring as Product Offerings
- How can you build your factor broker business?
- Understand Business Financing Options
- How can I build a network of clients?
- What backgrounds work well with being a factoring broker?
- Working with Bankers Factoring
- Ready for the owner-employees of Bankers Factoring to grow your business with our award-winning receivable factor financing, including bad debt protection? Use our fast online factoring application or call 866-598-4295. Work with us today and learn about our factoring broker referral program or call the toll-free number 866-598-4295.
Invoice factoring is a rapidly growing industry, with the global factoring volume increasing from $1.1 trillion in 2010 to $3 trillion in 2019. Every day, new business owners deal with unpaid invoices and issues with cash flow. As a factoring broker, you are the solution to this problem. Businesses can reach out to you to receive the help that they need.
Why become a commercial finance broker or invoice factoring broker? With benefits such as residual income, excellent flexibility, being your own boss, choosing your own hours, and suppor. We understand that becoming a commercial factor broker can be a fantastic business opportunity for supplementary residual income.
You can also read our article on what is a factoring finance broker.
If you are building a portfolio of products as a commercial loan broker, factoring and PO funding are critical components.
Learn more about the benefits of becoming a factoring broker.
How can you build your factor broker business?
Unpaid accounts receivable and money to fulfill purchase orders are the keywords to business owners’ pain points. Think about any business that must wait 30-90 days for invoices to pay from their business-to-business (b2b) or business-to-government (b2g) customers. Also, think about the not-yet-bankable entrepreneur. Most small businesses cannot qualify for a bank loan or line of credit. Ripe areas for you to grow your commercial finance brokerage is entrepreneurs selling on terms and bank turndowns. Your prospects can’t wait for their large credit-worthy customers to “pay the invoice”.
When looking to build your invoice factoring broker business effectively, there are many strategies you can implement to increase the likelihood of success. A few of these strategies include extensive research, exceptional customer service, and developing marketing plans.
Understand Business Financing Options
Having a strong understanding of the invoice factoring industry you are working in is essential to growing your business. By researching in detail what you are dealing with, you will be able to identify the gaps in the market and work towards being able to fill them, allowing you to offer your clients unique value and services.
Regular communication with your clients and providing exemplary customer service fosters and supports trust with your clients. Ensuring that your client’s needs are being met in a professional, efficient, and friendly manner will create strong relationships and secure clients for years to come.
Developing marketing plans that include items such as websites, social media, and email campaigns is a great way to build your client base. When you create content that demonstrates to clients the benefits of invoice factoring and how they can receive these benefits through your services, this can take potential prospects and allow them to become reality.
How can I build a network of clients?
Building a network of clients is a great way to build your invoice factoring broker business.
Potential clients will provide you with the tools you need to succeed as a factoring broker. Here are a few ways to get started in building a strong network.
- Attending industry events and joining industry associations
Events such as industry-specific trade shows, conferences, and seminars are great places to meet potential clients in the factoring industry. You can also join industry associations, such as the International Factoring Association, which will provide you with access to a network of factoring professionals and information that will assist you in building your business. Both of these ways will allow you to get out and meet people who are essential in building a strong network.
- Creating relationships with other professionals
When partnering with professionals such as accountants, attorneys, and financial advisors, you can create sustainable working relationships that will allow you to attract new clients. Offering factoring services to the clients of these professionals and offering referral fees to the professionals for creating these opportunities will provide a strong foundation for your business.
- Utilizing online forums and social media
Online forums and social media such as LinkedIn can be a highly effective way to connect with clients and create relationships with other professionals. It can also be an effective way to find industry events and industry associations to join and attend. When growing your base on social media, you can share your knowledge, engage with followers and meet new people, and build your business’s image.
Want to learn more? Learn 9 factoring broker networking rules.
What backgrounds work well with being a factoring broker?
Looking to become an invoice factoring broker? When you have experience in any of these backgrounds, your chances to succeed are likely to be high.
With knowledge and expertise in finance, you will have a strong understanding of financial markets and products, allowing you to succeed in understanding the business deals you are working with and what type of financing works best for your prospects.
When you have experience in sales, you have the tools needed to be able to effectively market your factor broker services and experience in building relationships with potential clients and referral partners.
With a background in accounting, you will already intimately understand topics like financial statements, assessing creditworthiness, and examining a company’s financial health: all things that will allow you to provide even more knowledgeable services.
Do you have experience in being an entrepreneur? If so, you have experience in identifying opportunities, taking calculated risks, and creating strong relationships. All things that are likely to benefit being a factoring broker.
Working with Bankers Factoring
Since 1998, the principals of Bankers Factoring have been working with factoring brokers like you to provide access to critical working capital to businesses that need it. Working with us, you will receive an ongoing residual income of 10-15% commission on your referrals, a competitive rate compared to the typical industry standard. After brokering a deal, you will receive payment of this commission every month, and depending on the number of deals you take on, many factoring brokers that work with Bankers Factoring make six figures a year.
Read more on how much a factoring broker can earn.
Bankers Factoring also supplies a complete training program that will provide you with the tools and knowledge you need to become a top-notch factoring broker. Working and learning with us, we will provide you with the assistance and guidance you need. Learn more about our factoring broker training.
With 24-hour funding, low factor fees, and high advance rates, we are easy for both commercial factor brokers and factoring clients to work with and grow their businesses.
You can also read how to become an invoice factoring broker.
At Bankers Factoring, the referral process is simple and requires minimal effort on your part. With strong funding sources, we are ready to provide monthly factoring lines up to $4,000,000. We are ready to help you generate more commissions and help you to grow and support your factoring broker business.
Be the source for funding options among your peers. Turn your prospect’s turn downed business loans into a funded deal with our factor financials solutions.
It is easy to sign up with Bankers Factoring. Just use our online factoring broker agreement.