A factoring loan broker or factoring broker is either a person or a firm which takes a companies' accounts receivable invoices to financing firms that specialize in factoring, that is, firms which purchase accounts receivable portfolios from companies on a non-recourse basis. These financing firms then bid on the accounts receivable package, with the highest bidder purchasing the accounts receivable portfolio from the company. The firm which purchases the accounts receivable portfolio is known as a factor, and the money or financing given to the company which sold its accounts receivable portfolio to the factor on a non-recourse basis is known as factoring. If this financing process is carried out on a recourse basis, then the financing is known as accounts receivable financing.
Where does a factoring loan broker offer a companies' accounts receivable portfolio?
Depending on how the factoring loan broker or factoring broker is set up, a factoring loan broker or factoring broker takes a companies' accounts receivable portfolio either to an open market or to a specified group of factors or financing firms that specialize in factoring that he or she does business with. The factoring loan broker or factoring broker does not purchase the accounts receivable portfolio, but merely acts as an agent to find a factor that will accept the accounts receivable portfolio.
What are the benefits of being a factoring loan broker?
As a factoring loan broker or factoring broker, you can earn a six-figure income if you apply yourself. The main benefit of being a factoring loan broker or factoring broker is that you can have repeat business as companies are always creating fresh invoices. More invoices mean more income for you.
How can I become a factoring loan broker?
You can have an exciting career as a factoring loan broker or factoring broker by starting with our loan broker program. Our easy-to-follow, step-by-step instruction manuals will enable you to get started as a factoring loan broker or factoring broker in about ten days. With our loan broker program, you also qualify to become an accounts receivable loan broker.
