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  1. #1

    Is a line of credit profitable for brokers? If so, how much can one make?

    My question pretty much sums it up..

  2. #2
    Member Reputation points: 2978
    Join Date
    Dec 2015
    Los Angeles, CA

    It depends; how many lines of credit do you fund?

  3. #3
    Senior Member Reputation points: 245177
    Join Date
    Mar 2015
    Boynton Beach, FL

    Quote Originally Posted by Iscibibi153 View Post
    My question pretty much sums it up..
    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?

    -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.


    Seacoast Business Funding, a division of Seacoast Bank
    Kevin Henry-VP Business Development
    Boynton Beach, FL

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