How to Gain Product Knowledge as a Factoring Broker

The value of a good consultant is usually based on the above average knowledge regarding some type of product or process.  As professional financing consultants, factoring brokers and commercial finance consultants are no different.  From a business owner’s standpoint, the factoring brokers client, there are two critical questions a professional broker must be able to answer…

  1. What is the best type of financing available to my business to remedy a specific working and/or growth capital problem I’m having?
  2. Where can I get this type of financing at favorable rates with quality service?

Professional factoring consultants must be able to provide answers to both questions and to do so, they must develop a certain level of product knowledge.  And, in the factoring industry as with most others, knowledge is power.  The more knowledge you accumulate about all the various niche areas of factoring as well as the many other sources of alternative small business finance that exist, the greater your worth as an industry professional.  And the great news is this.  If you are what can be considered a self-starter or mobile creative, you do not need to spend tens of thousands of dollars attending specialized training schools to develop your knowledge base.  Everything you need to initially enter the industry is readily available for under a hundred dollars ($100) along with some quality research time spent on the internet.  So if you’re ready, here’s where to begin building your base of industry product knowledge.

International Association of Commercial Finance Brokers (IACFB)

Though there are some excellent “hands on” training schools available to teach new entrants about the industry, the costs to attend such schools can often become an issue with some high-quality schools charging more than $50,000 to attend.   Some industry entrants can afford such fees, others cannot.  But when it comes to truly affordable, yet comprehensive training for factoring brokers, nothing really compares to the training offered by the broker’s association at IACFB where for just a few hundred dollars, you can literally get trained and ready for business within a few short weeks.

The Factoring 101 Brokers Guide to Factoring ($39.95)

The Factoring 101 Broker’s Guide to Factoring  is IACFB’s (International Association of Commercial Finance Brokers) cornerstone publication for those new to the industry and provides a very solid foundation upon which to build and accumulate the necessary knowledge required to be a true industry professional.  At a price of just $39.95, this 200+ page, 5-star rated publication is extremely comprehensive and provides prospective consultants with all of the necessary knowledge to begin developing clients and earning factoring’s near famous residual, life-of-account commission income.  The Factoring 101 Brokers Guide to Factoring is available from Amazon.com or from IACFB as an addon product to it’s popular Factoring 101 Marketing Support Program.

Certification and the “Proficiency Exam”

One of the greatest fears that new factoring consultants experience is that of being identified as an inexperienced “newbie” by other professionals in their community.  In reality, that is unlikely since most lending officers and accounting professionals know little or nothing about factoring and it’s power to address problems of cash flow in small businesses.  Still…the worry is there and to combat the feeling of inadequacy, IACFB offers all of it’s professional members with the opportunity to become factoring “Certified” by taking and passing the Proficiency Exam.

The Factoring 101 Proficiency Exam is designed to gauge your learning experience, level of knowledge and general understanding of factoring and the asset-based finance industry.  The exam also doubles as our Certification Exam for factoring.

The exam is made up of 200 questions randomly pulled from a 450 question database and is administered through Class Marker.  No two exams are identical.  All questions are based on content in the Factoring 101: A Brokers Guide and articles found in the Commercial Finance Consultant Magazine.  You will have two (2) hours to complete the exam. 

You may take the exam twice, although there is a one day wait required between sittings.  The acceptable pass / fail percentage on the exam is 80% for certification.  If you do not score well on your first attempt, don’t be discouraged.  Your weak areas will show and you can easily go back and review the guide to fill in the gaps where you are weak.  You will also earn “Trophy Points” for any score 70% or higher.  (See Trophy Points)

How to Access the Proficiency / Certification Exam

Taking the Proficiency / Certification Exam is very simple.

  • Log into the Factoring Broker Forums and from the sub-forums, enter the Learning Lab
  • Once in the Lab, select Factoring 101 Proficiency Exam form the menu tiles
  • Complete the Proficiency Exam Request Form at the bottom of the page and you will then be directed to Class Marker to take the exam.

Scoring the Exam

The Proficiency / Certification Exam is scored immediately and those passing will be able to download a certificate of completion immediately.  For those passing with an 80% or higher, a “Certified Broker Logo” will be added to your Factoring 101 website.

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