Invoice Factoring Broker Training
Whether you run an existing factoring brokerage or are just getting started as an invoice factoring broker, Charter Capital is the place to be. Our factoring broker program is simple and offers some of the industry’s best commissions. Check out the factoring broker training presentation on this page for the details or explore the page below for additional background and insights.
What is an Invoice Factoring Business Broker?
An invoice factoring business broker connects companies that need working capital with factoring companies that purchase accounts receivable.
An invoice finance broker could also fit under this umbrella, though they may connect businesses with additional forms of funding, such as invoice discounting.
Factoring brokers are distinct from other types of brokers because they’re not directly involved in the financial transactions. They operate more like referral partners and generally don’t require special licenses, though many of them hold them through other work they perform. In this respect, it’s easy to become a factoring broker.
A factoring broker may work as part of a brokerage and focus on the role full-time, though others simply connect businesses with a factoring company when the opportunity arises.
What is Invoice Factoring and How Does it Work?
Many industries have long payment cycles, meaning payments aren’t due for 30 or more days after invoices are sent. Some even have 90-day delays. These gaps make it very difficult for businesses to cover expenses and grow, especially when they’re smaller or just starting out.
Invoice factoring allows them to sell their unpaid invoices at a slight discount to a factoring company like Charter Capital.
The business gets most of the invoice’s value upfront, and we take over the collections process for them. When their customer pays the invoice, we send them the remaining balance minus a small fee for the service.
Businesses appreciate factoring because it’s easy to qualify for, is flexible, and doesn’t leave them saddled with debt.
What Accounts Receivable Factoring Brokers Do
As an accounts receivable factoring broker, you’ll play a crucial role in helping these businesses succeed by helping them find us so they can accelerate their cash flow. We’ll also provide you with ongoing commission to show our appreciation. A quick overview of the typical factoring broker process is covered below.
1. Identify Ideal Businesses
Almost every B2B business in the United States that has solid customers and wants to improve cash flow is a good candidate for Charter Capital’s factoring services. While we work with most industries, we tend to attract more clients in areas like:
- Trucking: Payment delays are common, and margins are thin in trucking and freight services. Sometimes, a quick cash injection means the difference between fueling up and accepting another load or delaying work to wait for payments. We also work with freight brokers who want to accelerate payment for their carriers.
- Staffing: Putting talented professionals to work means covering payroll on a weekly or biweekly basis, even though the customer won’t pay the staffing agency for 30 or 60 days. Streamlining that cash inflow gives them the power to cover payroll and grow.
- Security: Those in the security industry face a similar challenge. Their security guards need uniforms, equipment, and timely paychecks, but customers may take weeks or months to pay for coverage.
- Consulting and Professional Services: Overhead costs are also high for professional service companies like consultants and IT pros. But, to remain competitive, they often give their customers 30 or more days to pay.
- Manufacturing: Costs like retooling and materials can make it difficult for manufacturing companies to accept new orders. Knowing the money will come quickly gives them the confidence to grow.
- Oil and Gas Services: Winning a contract with a large energy company can be a dream come true for oil and gas services businesses, but those very same companies often have strict requirements that their contractors accept 90-day payment terms, in part due to their lengthy approval processes. Factoring gives these businesses the freedom to bid on and accept lucrative contracts.
In addition to invoicing credit-worthy businesses, prospective clients must have at least $20,000 in monthly sales, though we work with those that generate up to $1,500,000 per month.
2. Share a Few Details About Us
When you connect with a business that seems like it might benefit from factoring, tell them a little about how it works and what sets Charter Capital apart from other factoring companies.
3. Send Them Our Way
Let us know who you’re sending our way, and we’ll take it from there.
4. Get Paid a Monthly Commission
Once they’re onboarded and factoring, you qualify for commissions. Each time one of their customers pays an invoice, you automatically receive payment. It’s delivered via ACH the month after the invoice clears.
What Makes Charter Capital the Best Factoring Company for Brokers
Often referred to as one of the best factoring companies for brokers, Charter Capital offers top commission rates. Plus, everything is tracked in our system, so it’s easy for you to see what you’re earning and why. And, you can earn unlimited commission, so the more people you send, the greater your residual income grows.
Talking Points an Invoice Broker Can Share with Businesses
The Charter Capital difference begins with longevity and experience. Founded in 2001 in Houston, Texas, our principals have decades of combined experience. We take the time to get to know our clients and their challenges to provide top-notch service.
Whereas many factoring companies tie their clients into one, two, or even three-year contracts, we don’t hold anyone hostage. They’re free to go at any time, though we take good care of them to ensure they don’t want to. The same goes for monthly minimums.
Others nickel and dime their clients or charge hidden fees. They’ll see charges for things like not meeting monthly minimums or even for applying. We cut out these unnecessary costs and offer transparency.
We also make it easy to submit invoices and track accounts. “Factoring made simple” isn’t just our slogan. It’s what we live by.
Get Started with the Charter Capital Referral Partner Program
If you work with small and mid-sized businesses that struggle with cash flow due to slow-paying customers, the Charter Capital Referral Partner Program will allow you to connect them with fast and reliable funding that helps them thrive while earning commission. To learn more, visit our Referral Partner Program page.
