Results 1 to 3 of 3
Hybrid View
-
06-23-2020, 10:14 PM #1
- Join Date
- May 2020
- Posts
- 105
Is a line of credit profitable for brokers? If so, how much can one make?
My question pretty much sums it up..
-
09-15-2020, 04:45 PM #2
- Join Date
- Dec 2015
- Location
- Los Angeles, CA
- Posts
- 121
It depends; how many lines of credit do you fund?
-
09-15-2020, 05:00 PM #3
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,484
It depends:
-How large of a facility?
-What is the structure?
-Who is the lender?
-What is their cost of capital?
-What is the average life of a client with the lender?
Answers:
-Some can provide factoring and asset based lines of credit from as little as $250K to well over $40Mil.
-Some will offer the same commission structure on their ABL deals as their factoring deals.
-Some will offer up to 15% of the net spread over the life of the client.
-Some have an average lifespan of a client over 3 years.
-Some of a very low cost of capital.
Finding a lender/factor that can be competitive in the market, can offer other services to the client, and has sticky relationships with clients.....makes for a very lucrative and long term source of commissions. Win clients...not deals!
Example: 4 years ago I provided an ABL facility for a company that was introduced by a broker fro this forum. He was originally going to get them a $100K advance and make a quick $10K. The broker made 3X that the first year. The client is now on year 5 and has grown significantly. I have won other clients with this broker because the happy customer referred friends to him and he in turn called me.
Best,
KHKevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
Similar Threads
-
Do brokers make a profit?
By InhouseFunder in forum Merchant Cash AdvanceReplies: 35Last Post: 05-24-2019, 03:06 PM -
Looking for line of credit 7m+ sales construction co. Excellent credit
By ABC2016 in forum Deal BinReplies: 6Last Post: 09-05-2017, 03:37 PM -
$3.0 million line of credit arranged by Advance Credit Funding Corporation
By bdshaw in forum PromotionsReplies: 0Last Post: 04-28-2015, 12:32 PM -
Where brokers go to make money
By bdshaw in forum Business LoansReplies: 4Last Post: 03-24-2014, 11:30 AM -
Where brokers go to make money
By bdshaw in forum Merchant Cash AdvanceReplies: 6Last Post: 03-18-2014, 05:00 PM