At its heart, a business loan broker is someone who is able to bring borrowers and lenders together to form an agreement. Part diplomat, part banker, part business person, and part negotiator – a business loan broker has one foot in the private sector and another in the world of finance. However, there is a lot that goes into being a business loan broker before any deals can be made.
It is not uncommon for business loan brokers to break into the business with a GED or high school diploma. But, if you are looking to expand your scope and http://rapidloan.net/payday-loans-sd work with brokering mortgages or commercial loans, then a four-year bachelor’s degree in either business, finance, economics, communications, or psychology is required. The knowledge gained in these courses will go a long way in analyzing financial statements, negotiating deals, and steering conversations toward lucrative agreements. It also does not hurt to have a basic background in accounting and banking in order to match clients with the right type of financing.
Outside of the classroom and books, there are “soft skills” a business loan broker needs to be successful. Business loan brokers need interpersonal skills to not only speak professionally and deal with clients across a wide range of backgrounds, but to also help them fill out the correct paperwork, and answer their questions completely and with confidence. Loan brokers also need drive and initiative. They need to be able to spot people in need of business finance, and to think critically about what type of loan would work best for each client’s goals and current financial situation. It also cannot be stressed enough that a business loan broker should be able to make quick (and accurate) decisions, and have competent financial literacy to quickly evaluate the financial information supplied by your clients.
Much like bank loan officers, business loan brokers must go through financial loan broker training to learn mathematical analysis skills, as well a business networking. Sometimes companies will sponsor refresher courses or training initiatives, which can certainly take a bit of the burden off of the cost of classes. It should be noted that certain states have specific qualifications that need to be met – usually regarding prior experience and (in some cases) criminal convictions. At the end of training, a test is issued, and after passing you will be able to get a license for our profession, just as a Loan Originator. As with other fields, licenses and certifications increase your chances for employment.
Securing a job as a business loan broker is easier if you have experience working in sales, lending, banking, or customer service. In order to cut your teeth in the finance industry, taking on internships (even if they are part-time) at banks and brokerage firm will greatly build up your resume and make your CV very attractive to employers. Many employers are also willing to put new business loan brokers on a training period to help them use their learned skills in real life situations. After the trial period, your employer will let you work on independent deals and projects, to see how well you perform in counseling clients, evaluating loan applications and analyzing financial statements.
Business loan brokers can work for a brokerage firm, or they can strike out on their own and act as independent agents – getting hired by businesses that require specialized types of financing. Instead of going to lenders directly, businesses with hire business loan brokers to seek out lenders with the cash reserves and loan programs to fulfill their needs, and act as liaisons in negotiating the entire deal. On the other side of the coin, lenders are always on the lookout for business finance brokers to bring clients their way. In essence, business loan brokers with the initiative and drive to work with both lenders and businesses can make a very lucrative salary by sending opportunities in the right direction.