Factoring Broker: The Perfect Home Business Opportunity!

For many, finding the perfect home business opportunity can be a bit of a daunting task.  There are literally thousands of quality business opportunities out there and to be certain, when it comes to business opportunities, one size DOES NOT fit all.  “Biz Opps” come in all shapes and sizes.  Some come in the form of expensive franchises.  Others come in the form of someone’s latest and greatest idea along with a simple book of instructions.   All in all, however, business opportunities continue to grow in popularity and especially those that can be categorized as “home business opportunities”.

Why You May Need That Perfect Home Business Opportunity

When seeking out that perfect home business opportunity, one of the first questions to ask yourself is…”Why?”  Just as there are many types of business opportunities, there are also multiple reasons and personal situations that may cause you to seek one out.  For example, you may be dealing with any of the following scenarios:The Perfect Home Business Opportunity

  • MULTIPLE INCOME STREAMS:  Your current salaried job is OK, but you’re just not earning enough income.  You need a “side job”that will provide extra cash.
  • PHASE OUT FEAR:  The handwriting is on the wall and your job or profession is at risk.  You need to find another career path…FAST.
  • HEALTH ISSUES:  You may be in failing health and in need of the ability to work from the comfort of a home office, when you can.
  • RETIREMENT:  You have retired or are close to it, but you know your retirement income will be meager and not enough to live on.  You need something supplemental.
  • CAREER ISSUES:  You don’t have one.  The college opportunity wasn’t there and now it’s time to “grow up” and learn a profession.  Maybe that perfect home business opportunity will fill the bill.
  • MOTHERHOOD:  You’re sharp, intelligent, but also a stay-at-home mom.  You need a quality home business that can help pay the bills yet give you the flexibility to work when and how you can and as time permits.
  • ELDER CARE:  You’re faced with a choice.  Either elect the expense of a nursing facility for a loved one or opt for care in your own home.  If you move that parent or loved one in, you’ll need the income from a quality home business to make ends meet.

No matter what the reason or combination of reasons, if you are seeking a home business opportunity, the choices are many.  One general type of home business that definitely garners a hard look by many, is that of professional consulting, which is growing in popularity each and every year.  And one of the most unique niches of professional consulting that can be easily learned by most, is the completely under-the-radar business opportunity known as “Factoring Broker, or more properly, Commercial Finance Consultant.

What is a Factoring Broker / Commercial Finance Consultant?

A few years back, YAHOO’s Hot Jobs discovered the factoring industry and gave it a “Top Ten” Hot Jobs rating.  The article gave the industry a nice pitch in general, but the catch was this…the article’s author really did not know what he had uncovered.  The recommendation was to act fast and simply find a “job” in this lucrative industry called “factoring”.  What the article had completely missed when it revealed factoring as a “Hot Job”, was the exciting, under-the-radar, freelance home business opportunity the industry also presents to almost anyone.  That opportunity can be exceptionally lucrative and is typically referred to as “INDEPENDENT FACTORING BROKER”.

In simplest terms, factoring brokers are “referrers”.  They are independent middlemen (or women) that locate and consult with cash-strapped small business owners and help them solve the various working capital and cash flow problems plaguing their company.  All factoring operations of size have some in-house personnel charged with developing business for the firm.  Called “Business Development Officers”, or simply BDOs, these individuals are akin to the loan officers at your local bank.  They network and market to find new clients in need of financing.   BDOs are usually compensated based upon a salary plus commission override.  Factoring brokers are simply freelance, independent BDOs that most often source business clients for multiple factors and lenders, rather just a single company.  For such work as “referrers”, they are paid a very attractive residual finder’s commission by the factor when a deal is placed and accepted.

9 Reasons to Place Factoring Broker at the Top of Your Perfect Home Business Opportunity List

So why is becoming a factoring broker / commercial finance consultant such a perfect home business opportunity to launch?  Here are 9 simple reasons to place “factoring broker” at the top of your list when exploring home business ideas.

  • MINIMAL HOME OFFICE EXPENSE:  This is a niche consulting business and as such, at least from the setup side, you will only need a basic home-office area with computer, printer, phone system, and some software.Become a Freelance Factoring Broker
  • AVAILABLE TRAINING:  Though an area of business finance few are familiar with, becoming knowledgeable in factoring (and a few other necessary areas of alternative commercial finance) is not all that difficult or expensive.  And, though there are some excellent dedicated training schools available to those with the price of tuition, for most, all the knowledge necessary to enter the industry competitively as an independent broker is available for just a few hundred dollars and some quality time invested in online research.
  • MINIMAL COMPETITION:  To be certain, there are always plenty of BDOs in the “small business trenches” on a daily basis, seeking out new financing opportunities for their respective firms.  But worldwide, factoring is a multi-trillion dollar industry and with freelancing in the U.S. still relatively unknown as a profession, there is an abundance of opportunity to go around and especially for those that can learn the industry’s product areas and develop the necessary soft skills to excel in this extraordinary niche area of business consulting.  In fact, industry success can often lead to a complete lifestyle change.
  • INCOME POTENTIAL:  One of the most appealing aspects of the factoring industry is the method used to compensate independent brokers for their referrals.  When a client is referred, the “broker of record” earns commission income each and every month, so long as the referred business owner continues to utilize the services of the factor.  Broker commission income is based upon a percentage of factoring fees earned each month and such “residual” commission payments can often be received for 3, 5, 7, even 10 years or longer.
  • PRESTIGIOUS NATURE:  Make no mistake, this very special vocation is highly professional by it’s nature and as a successful industry consultant, you will garner respect from other professionals in your community.  In fact, a successful entry into this industry can often foster a complete lifestyle change for many that discover it’s many opportunities.
  • OPERATIONAL FLEXIBILITY:  As with most specialized areas of consulting, the hours you work, how you market, the product areas you cover, etc. are strictly up to you.  There are factoring brokers that operate and market only from a desk at home, using spare time spent on social media and a website as their preferred method of prospecting for clients.  There are others that opt for an actual commercial space, giving up the comforts of home for a more corporate image and appeal.  And there is, of course, everything in between.
  • SCALABILITY:  Though most that enter the freelance side of factoring are content with simply operating a one man or woman shop, there are other “mobile creatives” that look at this remarkable business opportunity with greater vision.  They embrace an “agency concept”, building a network of sub-brokers below them and taking their business finance consultancy to the next level.
  • MINIMAL BACK OFFICE AND PAPERWORK:  Those that enter this industry quickly learn that, from the broker’s operational side, paperwork is at a minimum and often, completely non-existent.  Independent freelance brokers never get involved in the actual contracting between factor and client.  Their entire job is that of professional “finder”.  They simply locate a business owner in need, introduce that owner to the proper lending source, and then go out and DO IT AGAIN!
  • NO LICENSE REQUIRED:  The business of factoring broker strictly involves B2B financing and has little or nothing to do with consumer lending.  Because freelance factoring brokers are never involved in the actual contracting or any legal aspects of financing, they are looked upon as strictly “finders” and exempt from professional  licensing.

So, Is Factoring the Perfect Home Business Opportunity for You?

At one point in time one could confidently say that the factoring business was certainly not everyone’s cup of tea.  With the introduction and popularity of social media, however, those days are long gone.  Learning the ins and outs of the factoring industry means that anyone armed with that basic knowledge and who finds themselves in the right place, at the right time, can make a business referral to a lender and earn a very attractive residual, life-of-account commission for their service.  And, with the exceptionally affordable training and business startup packages offered by such organizations as the IACFB (International Association of Commercial Brokers), a home-based career in this fascinating industry, has never been more obtainable.

Want to Comment on This Article?

If you have questions or comments regarding this article, post them in the Commercial Finance Consultants Magazine “Comments Section” on the Factoring Broker Forums.  If you are not yet a Forum’s Community Member, you can join the community by simply registering at the IACFB’s public website at www.iacfb.org.

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