How to Hit a Home Run

Jason, a Freelance Factoring Broker

Jason Jackson an avid New York Yankees fan never missed a game and in most cases he would head to a local sports bar near his Tampa home to watch and enjoy some wings and beer while cheering on his team.  Jason’s normal 9-5 job was as a driver for Fedex and although he earned a reasonably good living, he still felt he needed a side job of some kind.  Jason also liked to fish and he’d been thinking about buying a flats boat he could trailer to the Florida Keys once in a while but even with his good job, the money simply wasn’t there.

As Jason explored various home-based business opportunities he might be able to get involved in, one he had come across seemed to be exactly what he was looking for and that was as an independent broker in the commercial factoring industry.  He had learned a little about factoring from a college friend, Jim, who had started a guard service in Atlanta a while back and used factoring to help make payroll when his customers, mostly gated communities, were slow in paying their monthly invoices for security services.  To quickly learn a little more on how it worked, he called Jim who he had not spoken with for a while and after catching up he found out Jim was still using the services of his factor after nearly 5 years because the cash provided by factoring helped him easily meet his growing weekly payroll.  Jim explained to Jason exactly how factoring worked and had helped him grow his business exponentially.  Jim asked Jason why he was so interested as he surely did not need factoring for his job as a driver at Fedex and Jason told Jim that he had found out, in researching for a good business opportunity to start, that factors often used independent brokers to assist in developing new clients and not only did they actively seek independent brokers, but they also paid them quite well for their referrals with residual, life-of-account commissions.  Jason asked Jim for the name of the factor he used and that had been financing him for over 5 years to research the factor’s website to see if he could find more information of brokering.

Even though he had the phone number from the website, Jason did not immediately call the factor but simply viewed the website to see if he could get more brokering information.  Unfortunately, like almost all in the industry, this particular factor did welcome referral from bankers, accountants, and independent brokers but unfortunately did not have a formal training program for independent agents.  So Jason did another search online using the search phrase “factoring broker training” and found the organization IACFB (International Association of Commercial Finance Brokers), which had complete training and support programs that were not only affordable, but comprehensive.  In addition, the IACFB had complete marketing training for new industry brokers that included professionally designed WordPress websites.

Jason looked at all the IACFB information in something called “the Campus” and decided he would sign up for IACFB’s Freelance Broker Program which was under $200 and included complete factoring and marketing training as well as a business website to generate leads.  While he was on the ICAFB website, he also spent some time in the site’s Learning Lab which is a FREE introductory training area that provides prospective members with some basic information on factoring and the business of brokering to help get them started.  But he couldn’t stay on the site long because the Yankees were playing at 7:00 and he needed to get to his local sports bar to get a good seat.

While at the end of the bar watching the Yankees game he struck up a conversation with another fan and as the two watched the game and conversed, Jason’s asked his new acquaintance what he did and he got a little surprise when he said he operated a security guard service.  Jason then told him they had a lot in common since one of his friends had a security guard service in Atlanta and he had just spoken with him today.

Jason Hits Pay Dirt

And then Jason hit pay dirt.  In one of the games commercial breaks, he asked his new friend if he also used invoice factoring services like his old college buddy.  His new Yankees buddy said, “No, what’s that?

Now Jason was in a panic.  He knew almost nothing about factoring, but he had learned a little about how it basically worked from exploring IACFB’s Learning Lab and so he explained what little he knew to his new friend who not only listened intently but surprised Jason when he said, “Say, would you mind if I called you buddy in Atlanta to find out a little more.”  Jason said that would be no problem but he could do him one better, I can have one of my account executives I work with at IACFB call you and explain the entire process.  Jason’s new friend, whose name it turns out was Ernie said he would have no problem with it and he gave Jason a business card.

The Call

Jason was more than excited the next day when he called IACFB to speak with an account executive to explain what had happened the night before.  Not only had the Yankees won the game, but as he explained, he also had a decent lead for factoring.  The IACFB account executive took the lead information and also directed Jason to go back to the Learning Lab at IACFB.com and download a “Broker’s Agreement” so he could execute it and email it in making Jason the broker of record on the lead.  Jason also got instructions on how to sign up for the Freelance Broker Program which he did right after he hung up on the call.

The next day, the IACFB account executive emailed Jason and told him he had spoken with Ernie and the conversation about factoring had gone so well that contracts were already being prepared to be sent for Ernie’s signature and while Ernie’s business was not very large and only billing about $70,000 per month in sales, it would still be enough to earn a good residual commission check of about $175-$200 per month ongoing.  Additionally, in almost all such instances, the funds provided by factoring allowed such service business to grow exponentially in a relatively short time.  And even though he had not yet received his first commission check, it was clear this was the business that Jason wanted to be in and not only was he excited about getting his new factoring business fully operational, but he was no also looking forward to fishing season and his new flats boat.

Conclusion

Many factoring brokers operate part time and generate leads and new clients simply by meeting new people, networking, and building new relationships.  In the above example, a small but quality account was secured by something as simple as chatting with a new acquaintance at a sports bar while watching a baseball game.  With quality training available at IACFB, operating as an industry “referrer” realistically could not be easier and the cost of operation on this type of occasional, part time basis is just pennies per day.  Also understand that in the case of Jason who literally landed his first deal while he was training, the cost of that training program, under $200, was additionally reimbursed as IACFB’s standard “First Contract Bonus”.  Jason will now have benefitted from all of the training provided by IACFB for free.