Professional Documents
Culture Documents
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FactoringCareerReport.CopyrightDataMaxMarke ngSystems,Inc.AllRightsReserved
Friends and Family: Another traditional source for startup working capital
which is clearly not as accessible as in the past, many making up this group
friends and live in fear of losing their own job or are under severe financial
stress.
Historically, small business entrepreneurs have utilized community banks for
micro-business loans as their working capital needs grew along with their companies.
Those days are no more. Currently, of the nations roughly 8,000 banks and thrifts,
nearly 900 are still operating under severe distress and with capital limitations. It is
estimated that a large number of such Zombie Banks will not survive the continuing
economic downturn.
One of the strongest characteristics of ACF is its broad and ready availability
to small business. For owners and entrepreneurs, gaining knowledge in this critical
area of commercial finance can often mean the difference between the success or
failure of their business.
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FactoringCareerReport.CopyrightDataMaxMarke ngSystems,Inc.AllRightsReserved
There are many other forms of alternative commercial finance with many
pertaining to import export trade. Companies with a focus on payroll finance are a
rapidly growing area currently and while most loan programs of the U. S. Small
Business Administration (SBA) cater to business owners with at least a three year
operating history and reasonable credit, the unique SBA Microloan Program with loans
granted up to $50,000 is an especially attractive source of financing for startups.
Consulting
found on the job while working for a factor or similar lender. To get a job with such a
lender, however, you likely will need experience.
Making a complete career change into the industry can also be daunting simply
from the fact that it will likely take several months before income begins to appear.
That is, if you do everything right. Few are initially prepared to start full time, however,
tending to slowly learn the business and make a transformation while they continue to
earn a living from their current profession.
TheJeweloftheIndustry
Factoringisaec onatelyknownastheJewel
oftheindustryduetoitsuniquemethodof
brokercompensa onandLifeofAccount
paymentstructurewhichallowsconsultantsto
buildbooksofbusinessandmonthlyincome!
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FactoringCareerReport.CopyrightDataMaxMarke ngSystems,Inc.AllRightsReserved
And, thats not all. Compensation for referred business is very high on a comparative
basis to many other areas of consulting. For example, while a traditional stockbroker,
a well known area of financial consulting, will require $50 to $75 million under
management to earn a six-figure income, a successful commercial finance consultant
that deals heavily in factoring, will need only 5% of that amount or roughly $2 to $3
million.
In addition to being compensated by lenders, many consultants will charge a
small fee to their clients for the consultation work. Hourly rates can typically run
$25 to $40 per hour but a flat rate fee of $100 to $500 is not unusual.
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The vast majority of those that start out, do so from the convenience of a home office.
In fact, some never leave it. Most true professionals will eventually make the transition
to an office located within a bank building or to an executive suite operation where
they can have access to a receptionist, meeting rooms, and other BIG OFFICE
benefits.
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mouth marketing and building relationships with others than can send business their
way. They will have a website, publish a monthly newsletter, and spend a significant
amount of time using social media such as Facebook, LinkedIn, and Twitter.
Career oriented full time consultants typically attack the industry more
aggressively. Yes, they will use all of the same marketing weapons of a part-timer but
will also depend heavily on direct mail / cold calling, holding small business seminars /
workshops, and will join multiple organizations such as the local Chamber of
Commerce and fraternal organizations (Rotary, Kiwanis, Lions, etc.). Professional
consultants network heavily with bank lending officers, accounting professionals,
commercial insurance agents, and others that provide services to business owners.
Communications Skills:
As a consultant, you will
live or die by your ability
to communicate with
prospects for your services. You will need to carefully assess your
communication skills and improve the areas where you are weak.
The Look: You will need to look and act the part of a successful industry
consultant from day one. Financial consulting is a suit and tie business. You
must act and look at least as good as your local banker or, preferably, even
better. You will not only be judged on your expertise and financing skills but
also on youre ability to impress prospective clients with your capabilities.
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Additional Resources
Without question, a career as a consultant in factoring and alternative
commercial finance is not for everyone. Though almost everyone would enjoy the
income and many benefits associated with a successful entry into this unique
vocation, the professional requirements can present a major challenge to many. One
of the first hurdles which will be necessary to overcome will be that of obtaining a
financial products education. Fortunately, this has gotten a bit easier due to the
internet and the enormous amount of educational materials to be found there.
While there are several business opportunity schools offering training in this unique
area, the costs, up to $20,000 for a few days training, can be prohibitive.
For those initially exploring the industry, there is no better way than to become a
part-time factoring broker and no more affordable industry training opportunity than
that found at the IACFB or International Association of Commercial Finance
Brokers (www.iacfb.org). IACFBs Factoring 101 broker training program comes
complete with everything required to enter the industry successfully including an
expansive training guide, supplemental marketing materials (brochure / flyer
templates), and a professionally designed factoring broker website all for under $100
plus website hosting.
Another resource for those initially assessing an industry career can be had
simply by visiting the websites of factors and lenders. As you do so, you will notice
that most will have a tab or link to a Brokers or Referral Page. Spending time on
these sites, investigating a specific lenders financing capabilities and preferences, will
provide you with a greater appreciation as to the overall size of the industry and its
many specialty areas of opportunity. Incredibly, this is a vocation you probably did not
know existed until recently.
Finally, for those with a bent towards a full time career as an Independent
Certified Commercial Finance Consultant, the comprehensive Commercial Finance
Consultant training package offered at Campus IACFB is by far the most affordable
way for true professionals to begin their career. This program provides training in all
areas of commercial finance and includes the indispensable database of financing
sources, the American Directory of Factors and Lenders.
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