Become a Business Creditline Broker
Like other types of business credit brokers, business credit line brokers work with both the lender and the borrower to try to get a good match for each. Business credit line brokers focus on getting lines of credit for businesses which help them to meet cash needs even when cash flow is reduced. This can occur when a company has a high accounts receivable balance or unusual cash expenditures in one month causing cash flow to be minimized. Business credit line brokers do not actually lend money to the businesses. Instead, they work with borrowers, usually small businesses with difficulty obtaining loans, and connect them with lenders who can provide them with the necessary funding. Learning how to become a business credit line broker is much like learning to become a credit broker for business in all other areas of finance.
Contents
Steps
- Obtain, at minimum, a four-year degree in finance, business or marketing.
- Although many firms will hire brokers with a four-year degree, most business credit line brokers continue their education through the Master's level.
- Continued education in this field results in more job opportunities and promotions.
- Apply for internships at brokerage firms and other lending institutions while still attending college to help build experience in the industry.
- Take the loan brokerage exam offered by your state.
- In most states, you will need to score a 75% or better in order to pass the test. Keep in mind that higher scores on the exam could result in more job offers, so it is important to study the material closely to achieve as high a score as possible.
- Establish relationships with a variety of business owners and lenders in order to develop a client base.
- Quite often, succeeding as a business credit line broker comes down to who you know more than what you know, so building a strong client base is the best way to succeed. By building strong connections in the business world in your area, you will be more likely to learn what works for each individual business as far as financial needs.
- Continue learning by attending workshops, seminars and conferences even after you begin working.
Tips
- Once you have begun your internship, or are working at a brokerage house, begin advertising to local businesses by discussing the importance of fluid cash flow. This could earn you additional clients.
- Because much of a business credit line broker's work is talking to business owners and lenders, excellent communication skills are a necessity. You will also need good math skills as you will spend a significant amount of time working with numbers.
- Computer skills are also becoming increasingly more important in the lending industry, and business credit line brokers are no exception. Be sure to develop good computer skills and be willing to learn any programs necessary to accurately complete your assignments.
