Have you thought about being a loan finder or broker for other businesses?
An easy way to start is by finding Accounts Receivable (AR) loans for small business.
Businesses seeking AR financing (money that’s owed them for work done or product shipped) are the easiest to get money for.
Companies and banks that lend on ARs are called Factors – these lenders constantly seek new businesses to lend money to.
Many factors work with finders and are happy to get your business with no charges of any kind to you.
You don’t need a license to act as a finder; you can start now.
How can you get started as a Finder for AR Loans with little investment?
And what do you need to get started? Here are your answers:
You need a printed letterhead and envelope to do business, both with your business name and personal name and address.
You need access to a computer and printer or a typewriter to produce typed letters to your client and lender.
You need a telephone for making calls to prospective clients and lenders. You can send letters instead, if you want, but it will take longer to get a response.
You should have access to a fax machine. You can send and receive faxes at a local print shop. But having a fax number can help show you’re serious about your business.
Get started by going to your local public library or searching on the web for directories listing quick business funding in your state. Focus on your city, or a nearby large city and get the names and phone numbers of service businesses (such as office cleaning) or product suppliers (such as lumber, office supplies). Contact these firms, telling them you have Accounts Receivable loans available.
You’ll be paid a commission by your AR lender when the loan is closed. Some AR lenders also pay a Closing Bonus of 2% of the purchase amount, up to $5,000. The Closing Bonus on a $100,000 set of invoices could be 0.02 X $100,000 = $2,000. In addition, there’s typically a commission of 0.75% (3/4 of 1%) to you from the AR lender.
Remember, if you are acting as a Finder, you do NOT need a license because you:
1. Locate a lender to work with;
2. Locate a prospect who needs help;
2. Introduce the prospect to the lender;
3. Do not participate in the loan negotiation.
4. Get paid for making the introduction when the transaction is completed