Earning Residual Income
Wouldn’t it be great to keep receiving income even after the hard work is done? Many claim that this concept is what separates the rich-minded from the poor-minded. Active income is great, but residual income is even better—and getting there might be the best part of all!
Becoming an invoice factoring broker is a great business opportunity and allows you to earn a residual income. A factoring broker is a person who facilitates the sale of their clients’ accounts receivable invoices to a factoring company—just like Charter Capital. While an invoice broker isn’t employed by the factoring company, they still work with the factoring company to facilitate the sale of accounts receivable. An invoice factoring business buys these accounts receivable invoices. Customers who owed money to one company for products or services will now owe the money to the factoring company. By selling their unpaid invoices, a business can then get funding based on the money expected from the purchased invoices, which immediately boosts their cash flow.
Bank Loan versus Factoring
A bank loan is not the only way to get money. Invoice factoring is a transaction between businesses and as such has a few advantages over getting a loan at a bank. Much of the red tape involved in getting a bank loan is eliminated when getting funding through factoring. For example, income statements, tax records, and personal credit might prevent a loan from going through at a bank, but not so much with money obtained through factoring. Also, many more types of businesses, such as start-ups, can find easier funding through factoring than they can by going to a bank for a loan.
About the Job
Factoring brokers can sell accounts receivable invoices to specific potential buyers or to an open group of buyers. Good brokers help clients understand beforehand what information is needed before outstanding invoices can go up for sale. Information will need to be collected about the company’s customer base and its accounts receivable reports.
Invoice factoring brokers can work either full or part-time. This type job will appeal to those who enjoy sales and marketing as well as finance. In times of financial hardship or recession, those who work in this position can maintain an advantage as businesses will be looking for financing help.
How to Become an Invoice Factoring Broker
Most factoring companies offer tutorials, training, and support on the subject of invoice factor brokering. Once you land your foot in the door and get your first job, you can accumulate experience, build connections, and rack up a few successes as an independent business owner, and you can start referring your clients to Charter Capital!
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