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Basic Business/Financial Consultant
Report: The Nuts and Bolts Basics of this Exciting Business Previously,
this type of information was available only in expensive, specialty manuals
available through mail order from a limited number of sources. This exciting information is presented to
you FREE, below, with our thanks and the hope that you will use it to build a
profitable business with our help. HOW TO MAKE BIG MONEY WITH YOUR OWN BUSINESS
FINANCING SERVICE If you've been wanting to get into something that doesn't require all of your time, yet could give you an income of $100,000 per year or more, a Business Financing Service is definitely something you should consider. This is the kind of business that requires no special education or even a storefront office; won't take much of your time, yet offers more prestige, power and fast earning potential than just about any business opportunity available to the ordinary working person. The average net profit of people in this kind of business is $75,000 per year, before taxes. Most began on a part-time basis, operating out of their homes. Within a short period of time, varying with expenditure of time and effort, most have luxurious professional office suites with many clients from all over the country, and even the world, calling and asking for help. Perhaps best of all, this is a business you can operate with nothing more than a part-time secretary/bookkeeper, a telephone, and business cards. There are many facets of this kind of business, which involve bringing lenders and borrowers together for venture capital, operating capital, expansion capital, and of course, mortgages of all kinds. And with the services available to you from Destiny Worldwide, you can check worldwide sources of borrowers and lenders for sometimes INSTANT placement of your deal. And, if it is not placed immediately from our database, your deal will be presented to our worldwide network through our internal Broker’s Resource newsletter, so that our other brokers can begin looking for the perfect match for what you have to offer. No other service in the world does this, and with no upfront investment from you, it is totally unique and unheard of. Concerning mortgages, look at it from this point of view: Almost every building in the world---homes, office buildings, factories, apartments--- has a mortgage on it, and somebody is making some really big commissions bringing together the people wanting the money and the people wanting to lend the money. A business financing or money brokerage business is the ideal sideline business for real estate brokers, sales persons involved in business sales, investment brokers, attorneys, accountants and retirees from almost any occupation. This is definitely one of the truly recession proof businesses that actually seems to flourish in times of tight money. YOUR POTENTIAL MARKET Each year, more than 10 million business loan applications are filed with banks in this country. It is not uncommon for these banks to be working on more then 250,000 business loans each week, in amounts ranging from $25,000 to well over a million dollars. About 65 percent of the loans actually granted by the banks are short-term commercial loans; only 25 percent are for longer terms, with fewer than 10 percent granted for construction projects. And in some countries of the world, it is next to impossible to secure any type of loan at all, especially for non natives. This forms a huge untapped potential pool of borrowers – and the interest rates in some of these countries is outrageously high by US, Canadian, European, or Japanese standards, offering your lenders sometimes many times the rate of interest they are accustomed too, at only slightly more risk, if any at all. Yet, without YOU, they may never know what they are missing! It should be obvious that the banks of the world are neither speedy nor generous in giving loans to beginning or small business entrepreneurs. Such business people usually ask for loans of longer duration than the banks are willing to grant. It is easy to see that for a beginning business, smaller installment payments will reduce pressure on the borrower, and allow him to put more of the profit back into the business. In most cases, these small business owners need much more than the banks are willing to allow without all kinds of guaranteed collateral. And that, of course, is the reason why people needing money for their business success turn to business financing consultants, which provides you the opportunity for success in this field. You'll find that beginning or small business persons are always on the lookout for professional business financing services. They always seem to need more money than they have available, and they never seem to get quite the help or satisfaction they seek from the banks. But, as you begin working in this exciting business, you will soon discover that the pressing need for more capital is not something that plagues only the beginning or new business. IT is an ongoing need in almost every growing business also. In fact, the need for continuing input of new money is a necessary part of the growth cycle of every business. Generally, the "little guy" just doesn't have the extra cash from last year; he does not have the money it takes to set up a stock market program; and he doesn't have the time to devote to (or he doesn't want to attempt to "sell" his friends) an investment program in his business. Sometimes these small business people will talk with their accountants, lawyers or stockbrokers and ask them to help in finding people with money to invest. Most accountants, lawyers and stockbrokers are in touch with clients who have money they are willing to invest in growing businesses, or people with "sure-fire" money-making ideas. Whether these professional people do or do not have special clients with money to invest in special "deals" is of no consequence. The important thing is that these people are always being asked by someone if they know of a source of money, or if they know of someone who can locate an investor for them. With this in mind, and once you're set up in business, it will behoove you to contact these people---the accountants, lawyers, and stockbrokers in your area--to get to know as many of them as you can, and to leave your business card, so they will be aware of your services. Some may even wish to sign up as brokers themselves, which is perfectly fine, because if YOU referred THEM to our program, you will make a commission on every sale they make, down to five levels deep! SETTING UP YOUR BUSINESS You can start from the kitchen table in your home if necessary. You'll need a telephone and unless you have some one acting as a secretary, you should employ a telephone answering service. You can probably get by with a telephone answering machine, but because you're dealing with money, it's important that you project an image of success (and a telephone answering machine quickly identifies you as being a one-person operation). In addition to a telephone, you will also need business cards. These, of course, should be a fine quality (this is not a very large expenditure). They should be of a fine quality ( this is not a very large expenditure). They should simply state your name, followed by the name of your services---Business Financial Consulting Services. You may list your phone number in the upper left-hand corner, something such as " Money for Every Need" in the lower right corner, and of course your name and firm name centered in the middle. Assuming you are working out of your home, once you have moved into an office, you would certainly want to make new cards showing your business address. It wouldn't hurt to have a calculator, a computer, a typewriter, and at least a small file cabinet as you set up your business. But just as people got along before without these amenities, you can make do until you can afford this equipment. Once you are organized in a work area and with the basics for operating your business, the next move will be to get the word out that you're ready to offer your services to people needing money, and for the people who are willing to invest. This means advertising, visiting, making contact in some way with both the people needing money, and those wanting to realize a profit in the process of lending their money. And don't forget---often those who do not go with you for one reason or another may supply with you with fine referrals. The more you advertise and talk to people about your services, the more successful your business is going to be. So first of all, we suggest you run an ad in the classified section of your local newspapers. It might read like this: MONEY AVAILABLE!
Business start-ups, expansion needs,
construction loans, cash flow problems. Call 123-4567 You should run such an advertisement in as many of your area papers as you can afford, every day, for at least a month. This means that you'll have to have an advertising budget, with the money either coming in (or available) to meet these costs before you even contract to run your first ad. (This is part of the necessary planning that has to be done before you actually open for business.) At the same time you're running the ad inviting people to come to you for their money needs, you should also be running a daily ad such as this one: $350,000 NEEDED!
Will pay maximum interest. Growing business,
excellent profits and tax benefits. Call 123-4567. Now the purpose of the first ad is to build your list of people wanting money---needing loans that you can process. The purpose of the second ad is to build your list of investors in your area with money to put into some of these business proposals you get from the first ad. Obviously, you'll get more people wanting to borrow than people to invest; but once you begin running these two advertisements, you'll be on your way. And don’t forget, with your affiliation with us, you may be able to match them INSTANTLY by using contacts other brokers have listed! So you most certainly are NOT on your own here as a registered broker with us! When you place your first ads, start checking and following up on similar ads you see running in your area newspapers. Usually, they will be listed under "Financial & loans Wanted", or "Money to Loan." However, don't neglect to check the "Business Opportunities Wanted" classification as well. When someone calls in response to your "Money Available" advertisement, whoever is acting as your secretary should get the name of the caller, the name of the business, the telephone number, amount of money needed, kind of business and most appropriate time for a consultation. This can be handled most efficiently with preprinted telephone message pads. So you simply collect information from all these incoming calls, look it all over, and start making call-backs. Basically, your call-back conversation should sound something like this: "hello, John Jones? This is Mr. Money Broker returning your call about money for business financing. I understand that you're looking for about $100,000 in order to set up an auto tune-up shop. You stated that you are already pretty well organized with a business plan and location, and that you have pretty good collateral. That's very good. Before we talk further, however, I'd like to tell you a little about my company. "We represent a number of large lending organizations for business financing, as well as a number of private investors around the world who are looking for new ideas and businesses to invest in. Their primary requirement, of course, is that they will make money from such an investment. "What I do is work with you preparing your loan or investment package so that it will be attractive when it is presented to prospective lenders. it is very important that your proposal be complete and in the proper order. It is also of the greatest importance that it "look good," and "sell" the people it is taken to. The prospective lender must feel confident in granting you a loan or investing in your business. Once we've got your presentation together, I then take it to some of my lending or investment sources and work toward obtaining you the money you need. "As I'm sure you're already aware, it's important that your proposal be prepared properly,
and presented to the people who are in a position to give you the money you're
asking for. I work with you to see that your proposal is the best my people
have ever seen, and then I take it to the people who have the money and are
looking for a good investment. For this, I require a $100 broker's retainer
fee. I then go to work on your specific money needs. [Of course, this advance fee is optional,
and it will make some people not wish to deal with you. On the other hand, such a fee helps you to
compensate yourself for your time, and screens out non serious
borrowers. So the choice of asking for
the fee is entirely up to you.] What
we need to do now is to set up a time and date for me to meet with you so
that I may review your proposal. Would tomorrow morning at The important thing is to be in control of this telephone conversation; to tell the prospect only what you want him to think about; and to sell him on the idea of getting on with it by paying the broker's retainer fee of $100. Only after you have collected that, of course, will you start to work on evaluating his plan and getting the money he needs. When you go to see your prospect, you'll need to have a printed "broker's agreement" ready for him to sign at the time he pays the retainer fee. An example of a basic or simple broker's agreement is shown here. (Feel free to use the following form as a pattern for your own agreement, or you may even want to cut it out, paste it up, and have your printer run off a supply for you. If you do cut out and use the form, you will of course place your business name, address and telephone number in the space "Your Name and Address" at the top. Also, be sure to block out the instructions on the signatures lines.) Sample Form YOUR NAME AND ADDRESS AGGREEMENT FOR FINANCIAL SERVICE The undersigned, (Borrower's Name) , hereby appoints (Your Name) as his Agent, authorizes him to submit to lenders financial data and information supplied by the borrower for the purpose of the lender making a loan or investment directly to the undersigned. The undersigned agrees to pay to (Your Name ) a fee of ______% of the amount of the loan or
investment obtained. The services of
an escrow service will be important to use to facilitate this loan, and guarantee
that all conditions of the loan are met by all parties prior to disbursement
of funds. The escrow fee charged will
be agreed upon in advance, and paid by the borrower unless otherwise
stipulated in the loan agreement. [Note to broker: in my years of
experience in the loan business, I have learned through many hard experiences
that once they know about each other, the favorite pastime of many borrowers
and lenders is to cut corners and save money by cutting YOU out of your
commission! And in some states and
countries, this is not easy to stop.
ONLY by doing your deals through ESCROW at all times are you able to
get around this problem, because it is the ESCROW company that pays you your
commission, NOT either the lender or the borrower. Thus, you get paid at the same moment as
the borrower gets his money!] The undersigned hereby pays to (Your Name) $____________ as a non-returnable fee for time involved in appraising the feasibility of the loan requested. This fee is separate from any other fees due if loan is obtained. ______________ ______________________ Date Borrower Once you are organized and rolling, you'll find that most of your day-to day income will be derived from the packaging of loan applications. Once your client has signed the broker's agreement and given you his check for the retainer fee, you'll be helping him to get his loan or investment proposal together. This is the first thing to do, and you HAVE to do this regardless of any forms your client has already filled our, or anything he may have done relative to a loan proposal. First give your client a detailed list of information he'll need to have within his loan or investment package. Typical information you will need is:
[This is just a sample of what is needed; each lender has their own criteria and information needs, so package the loans according to the criteria of the lenders you will be submitting to.] Next you type this information onto the proper forms, assembling all into a portfolio and presenting it with a cover letter to at least five different lenders for their consideration. When the loan is granted, you collect your Brokers Fee--a pre-determined percentage of the total loan figure. Because requirements do change from time to time, you will want to give your client the most up-to date requirements in this regard. Go to several of the banks in your area and ask their loan officers for a copy of their loan application forms. use these forms as your guide in making up the detailed list of requirements you will use in working with your client. If you need additional assistance, write one of the several organizations listed at the end of this report. When you have the package put together and ready for presentation to a lender, take it back to your client and brief him on how to present it to the prospective lenders, and generally you would give him the names and addresses of the people you feel will be the most likely to listen to his presentation. He makes the presentation to the local prospects [only after the LENDER or INVESTOR has signed an escrow agreement and agreed to pay your commission], and we will provide you with the contact details and procedures for the lenders or investors you receive through us. If he needs further help from you, you would charge him a per-hour counseling fee, plus consulting charge fro any special or extra time spent working for him. Overall, you should position yourself and your service to the client in order to collect a "finder's fee" of 1/2% to 10% of the amount of money actually loaned to or invested in his business. A flat fee of $100 to $250 as a broker's retainer fee for helping him with his loan presentation when HE does most of the work, and an outright fee of 1% for total preparation for his presentation package---and a consultant's fee of $50 to $100 per hour for any additional time expended on the project. These are your "bread & butter" services that will establish you as a professional, and keep you in business until you score with a big commission from perhaps a million dollar loan. You have to involve yourself in these services, because they'll make the difference between your going broke or really succeeding in the money brokering industry. Indeed, you'll become more efficient with each experience with a client. You'll soon recognize which proposals to concentrate your attention on, and of course, which ones to scan briefly and hand back to a loan seeker. The more you deal with money professionals, too, the sharper you'll become---and consequently, the more money you will make. Money professionals know what types of loans are possible or likely from each of their different funding sources; thus, they'll present only those having the best chances of success. You will quickly become well versed in the current lending and investment trends, and acquainted with the lending rates and requirements of your loan sources. As you review, assist and put together each of the request-for-money proposals, your knowledge will improve your ability to package specific requests, and to "sell" a loan proposal. Just keep in mind that every time a loan is approved, or when one of your sources decides to invest in a client's business, or one of the investment funds we offer, you'll be taking a financial cut right off the top. Right here I'd like to assure that you don't have to be either a financial genius or a super sales person. All you really have to know is how to put together a proposal properly, and acquire a list of sources interested in lending money or investing in a venture, fund or project to obtain a profit. You'll find that most of the borrowers you sign to assist in finding money for are unaware that they will have very little if anything to say about the terms of the loan that may be finally granted. You'll find that most of them are already convinced that they have the ultimate idea for a business that will make everyone rich. Almost all of them are trying to get started with little or no money of their own, and they'll think that whatever the prevailing interest rate is, it's too much. Your first chore will be to screen these people. Explain the facts of life to them, and don't waste time with them if you have the feeling they'll reject or refuse to accept a loan you line up for them because of the interest rates. If they've been to most of the regular loan sources in your area, they'll know that when they want or need money, it's the lender who dictates the terms of the loan. A prospective borrower soon learns the prime rate that is published is almost never used. Actually, the prevailing prime rate plus two percent is generally a good rate of interest for small businesses. In moat cases, such loans have to be well secured with collateral not associated with the business. Most of your would-be borrowers will not qualify for the prime plus two percent rate. Business experience, coupled with the type of business involved, will almost always put them in the "high risk" loan category. After you have your retainer fee, you have to educate your would-be borrowers in this regard. For those who cannot face the facts of life about interest rates, you have to just forget. Something else you'll have to convince your clients of: If he says he'll give a share of his business in exchange for the use of your investor's money, he'll have to give up a very large share. Most small business investment corporations or private investors will want at least 25 percent, and more often than not, up to 49 percent. In some cases, where a half million dollars or more is provided by the investor, he may (reasonably) ask for as much as 70 to 80 percent. Thus, it's absolutely essential that you learn to qualify your would-be borrower before you get too deeply involved or waste too much of your life. For those who can't or don't want to pay your retainer fee--I say skip them. And those who can't or don't want to pay the high risk interest rates when you let them in on the real facts of life--forget them too. And those that have been turned down by practically every lending institution in the country, I would advise you---let some beginner gain practice on them. And these are the ones you need to learn to spot while YOU are a beginner. You should determine exactly how much cash and other assets your client can or is willing to put into his proposed business. You'll have to be satisfied with the character of your client as a borrower; his record of paying his bills, how he gets along with people, and his overall chances of success. You'll have to do the checking of his references and credit record. You'll have to judge how he'll make good on the loan if the business goes sour. When these questions are answered to your satisfaction, you can go ahead with helping him put together a proper loan proposal and work toward getting him the money he wants. Most successful money brokers charge according to the size and type of loan being requested. This is based on the amount of work they have to put in to place the loan. If it looks like a pretty solid business with a good record on the part of the borrower, and good collateral, the fees are usually lower. On the other hand, if it's a high risk proposal or if the borrower has very little business experience and you're going to end up doing a lot of selling to get the loan approved, your fee should be accordingly higher. Remember that not all loans are approved, even though they might have looked good to you in the beginning. With this in mind, you have to charge for your services and make up for the time you spend with those proposals that don't get approved by charging and collecting on those that do get approved. An example of the typical commission charges is shown below. LOAN AMOUNT YOUR FEE COMMISSION $5,OOO,OOO+ 1/2% $2- 4,999,999 1% $1- 1,999,999 1.5% $5- 999,999 2% $1- 499,999 3% $5- 99,999 4% $3- 49,999 5% to 10% Under $30,000 10% $750 minimum As we started earlier, you can start this kind of business from the comfort of your own home or apartment, and do very well. However, just as soon as you can possibly afford to, it would be to your benefit to set up an office with access to the general public. Your success and gross income will definitely benefit with an office. You should set up your operation in a prestige location within or fairly close to the business and financial district in your area. Basically, this will be for impressing your clients, but at the same time, by locating in or near your local loan sources, you'll quickly come to know the important people on a first name basis. Perhaps the best idea would be to sublet space in a suite of offices used by an insurance company, accounting firm, or a group of lawyers. An arrangement can often be made for their receptionist to answer your phone calls and receive your clients. With a little bit of finesse, you might even be able to have one of their secretaries handle your typing and filing. An alternative would be to locate yourself in an executive suite set up that provides all of the above services for a fee, and attracts independent practitioners like the above, with whom you can network, if your town has firms like this. Your office should be neat and functional, but still impressive. A large desk, comfortable chair and a credenza; perhaps a four-drawer file cabinet also. The image you project is of great importance, and being associated with a big name firm, even if only on the basis of sharing their suite of offices, will definitely be to your advantage in gaining ultimate success. You should try to cover the walls of your office with your certificates of awards, courses completed, association memberships and seminar courses
completed over the years. Destiny
Worldwide and Don't forget: when planning and furnishing your office, you should also include a least one, preferably two, visitor's chairs. A small sofa would be desirable, but really isn't necessary until you've really firmly established. The thing is, you want to project the impression of affluence and professionalism to anyone coming into your office. The ideal situation is to have a two-person team--someone on the outside doing the selling, and someone on the inside handling all the processing. If you have the marketing skills, and enjoy selling, you might look for a sharp and impressive appearing person to handle the processing for you. Or if you've got the processing know-how, you might keep your eyes open for a professional appearing person who could be your "outside arm" and do most of the selling for you. Basically, and excepting for the actual preparation and selling of loan packages, most of the inside work can be handled by clerical personnel. As you grow, however, you'll find it in your best interest to have a full-time secretary. You would train her to field incoming telephone calls, take care of filing, and do your personal typing for you. A typical loan proposal usually requires about eight hours of typing or computer work. Regardless how you get started, and even after you've moved into a suite of plush offices, you'll have to advertise to keep your business coming in. Besides running regular advertising in your local newspapers, you should also advertise in the local financial publications as often as you can afford Once you get your business rolling, you should expand your advertising coverage to include such national publications as the Wall Street Journal and the business opportunity publications. Regarding the type of advertisement to run in these publications, we recommend that you look at money brokerage ads in these publications. Clip out some of those especially like and have your local typesetter make one up for you, using these you've clipped as patterns. Any ad you run should include or list a minimum loan amount you'll handle, that is, a statement such as "$50,000 minimum to $...." This procedure will screen out the people looking for small personal loans. At the same time, it's a good idea to list a maximum amount you're capable of handling--for instance, "$50,000 minimum to $10,000,000." This will attract those who are looking for large business financing. In addition to your local newspapers, business publications and national distributed papers, newsletters and magazines, it will be to you advantage to run an advertisement in the yellow pages of your local telephone book and in area business directories. It may take a year to get into these directories, but I can tell you from personal experience it is well worth it. I also suggest you run the biggest ad you can afford, as the larger ads pull better and you can pay monthly. Besides "regular" advertising you should be sending out direct mail letters, letting people know that you can help them with their money problems. Some money brokers have a combination letter-display ad made up and printed on the back of postcards. This is quite a bit less expensive than sending out letters, and could possibly downgrade your image somewhat, but on the other hand, those money brokers using postcards say they're very effective because the recipients are more likely to save a postcard than a letter. Finally, if you plan to be national in reach, you may want to look into card deck distribution of your postcard ad, which a prospect can either mail into you for more information, or contact you via phone or your website. Lastly, we will be forming advertising pools of interested brokers to do just this on an organized basis, coordinating everything from Destiny Central, and thus spreading out the cost and assigning the leads on a pro rata and geographical basis. Other advertising coop programs will be introduced from time to time as well. A general description of one way a local direct mail system works is, you mail out your letters or postcards to real estate brokers and small businesses in your area. Then a couple of days later, you follow up with a phone call to these people. You identify yourself, ask if the card or letter had been received, and ask how things are going--if perhaps you can be of any help to them. Finally, you ask them to keep you in mind, and to be sure to let you know if something comes up that you can handle. About one third of the people you talk to will say that they don't immediately need money, but they know of individuals or businesses looking for help. When you do get a referral, be sure to elicit as much information as possible, then make contact with them. You can also send out letters in search of lenders or private investors. All of these efforts are helpful in establishing and building your business. In the broker’s area of our website, we will soon have mailing list brokers and other services, including public relations and advertising agencies that are reliable and can assist you in your efforts. When you have a loan or an investment proposal together, and you intend to sell it to a lender, you should first call the lending officer or the head of that lending organization. If you want to present your package to a private investor, you will more likely have to call his attorney, broker or investment counselor. For contacts outside your area, we will either assist directly in coordinating this, or complete information will be provided for you through the broker’s area. The purpose of your telephone call is to set up an appointment in order to present your package in person. Thus, during the course of this telephone call, you should brief the lender on the highlights of your client's loan proposal. If he's interested, he'll probably want you to send him a written summary. After he's received the summary and decided he's interested, he'll get back to you and set up and interview with you, and then you and your client. You and the borrower should rehearse the entire loan proposal and have all examples, charts and graphic illustrations ready to form a winning presentation. Any lender willing to listen at all wants to hear the full story, and when they have a question, they want the answer without hesitation. So be sure you're ready when they show up for that loan-selling interview with a COMPLETE presentation. Once you start processing loan applications, you'll find that about 80 percent of the loans granted to small businesses are made by commercial banks. A few more than ten percent are made by friends or relatives of the borrower, and about three percent by finance companies. Another three percent will be granted by insurance companies. This will give you an idea of possible money sources for your clients. You must remember, when a prospective borrower tells you how much money he needs, and wants to use it for, it is your job to evaluate his proposal and match his particular proposal with sources, likely to be interested. As you build your list of money sources, you will find those that specialize in specific categories of loans---for apartment buildings, medical facilities, recreation setups, and a myriad of others. Most money brokers cultivate the savings and loan companies, union pension funds, life insurance trust companies, credit unions, private investor groups, and even the small loan companies. The important thing to remember is that if you're going to bring together people needing money and people with money to lend, you have to continually develop contacts in order to build your list of money sources. It is very helpful to get to know your local bank officials because often times they can refer you to a person you can really serve, because he doesn't qualify for a bank loan. You will learn also that most sources of VENTURE capital money for business startups want an equity share of the business. They generally don't require that the money they put up be repaid, because they're hoping to make their profit from a share of the business as it grows and becomes more and more profitable. They especially like to get in on the "ground floor" of small companies who plan to issue public shares of stock when they begin to grow. Still another angle that money brokers should develop is contact with a number of people who might be interested in investing as silent partners in new or growing business ventures. Silent partners invest in a business without assuming any liability relative to debts the business may incur, while still sharing in the total profits of the business. In most areas of the country, there are always a number of wealthy people around who are interested in investing small amounts of money in any number of business ventures--sometimes as many as they can get in on. Until you've actually placed a few loans, you're undoubtedly going to occasionally spend a lot of time attempting to sell a loan that just can't be sold. You will have to develop your skill in evaluating from the facts the borrower gives you, the possibility of obtaining a loan for him. Your evaluation will be based upon how much he wants, for how long, and terms (time period and interest rate), his past business experience, and the feasibility of his plan for success in the planned business. While it does take some time and concentration to differentiate the "winners" from the "losers" be aware from the beginning, and you will be less likely to be caught up in efforts to place a loan that just can't be placed. Of primary importance to your lenders is your client's collateral which would assure repayment of the loan in the event of failure of the business. Lenders won't even listen to, or bother to look at, a proposal that is not backed up with realistic collateral to support the loan. And you may count on this: They will call you on any profit projections based only on the borrower's glowing predictions. These are the things you as a money broker must evaluate before getting too deeply involved. If the loan doesn't have the look of at least an even chance of being approved, better to give it to your client straight. It will save him grief in the long run, and will allow you to go on to another proposal with a better chance of success. When you go into the matter of collateral with a client, by all means be thorough and inquisitive in working with him. Many borrowers have collateral they have never thought of in terms of security. For instance, antiques, coin or stamp collections, life insurance policies, even a wealthy friend or so who would sign as guarantor(s) of a loan. Remember also any accounts receivable, promissory notes, machinery and equipment, and real estate equity. When you've listed all the collateral that can be dug up, you, have to demonstrate very clearly just how the loan is going to be paid---and particularly if the business fails. Collateral is a necessary part of any loan transaction, but it usually is not enough to satisfy the entire face value of the loan. Thus, in addition to collateral, the borrower has to have a clear and provable plan for repaying the money he borrows. So long as you work through the commercial banks, you shouldn't need any kind of broker's license. But to be sure, you will want to check with your local licensing authorities. In the end, you'll probably want to get a real estate broker's license, because in many cases, real estate will figure into the loan in one way or another. However, you can get started without one. If you run into an immediate need for a real estate broker's license, you can always make an arrangement with someone who has one and let him be the "licensee of record." Finally--and possibly the NUMBER ONE requisite for success in your Business Financing Service venture is this: You are going to need, and really must have, enough money available or coming in from some outside source(s), to sustain your daily living for at least the first three months BEFORE you open your business. It will probably take you two to three weeks to put together each of your first loan proposals. You're working (investing your time) but the money won't be coming in until you finish the job. But even when everything is ready and you begin trying to place a loan, it could take you anywhere from three weeks to three months to get the final approval. So the best way to get started as a money broker is, as we discussed earlier in this report, is to start on a part-time basis while you are still holding down a regular job. Remember, you can work out of your home, do some careful planning and become efficient with your time; concentrate on getting those "retainer fees" and proceed with packaging the loan proposals. There is no effortless way to start this or any other business. You have to start small, do all or most of the work yourself, and in addition to investing your time, you'll have to "prime the pump" with money of your own. However, it can be done, and most assuredly this particular kind of business can take you from pauper to wealth in a short time. One advantage you will have as our affiliate is that you will have a ready made international network to draw upon. Also, if you absolutely don’t have the time or the money to invest in actually doing this business, or the inclination, you can earn money through commission overrides by introducing other brokers into the program by sponsoring them. We help you to sponsor in several ways, and will give you this information once you have registered. It is possible to recruit qualified brokers and potential brokers, lenders, borrowers, etc. over the internet, and split the commissions with the brokers who do the actual work and / or earn overrides if you are their sponsor into the program. Details will be given upon registration into this unique program. You can even use this method to raise the capital and produce the income stream you will need to start your local business. This would not be possible with any other method of doing this business. Businesses in every city and town in this country would like to have more money than they currently have available. You can become rich beyond your wildest dreams by helping them. You identify those with money needs and bring them together with the people or organizations with money to invest. All it takes is the know-how we've passed along within this business start-up manual, and ACTION on your part--it's up to you! Return to Financial Consultant Area |
