Show Me The Money – How You Can Make Really Great Money Brokering Business Loans

Business man making a presentation at office. Business executive delivering a presentation to his colleagues during meeting or in-house business training, explaining business plans to his employees.

My mother-in-law is a good egg. Her health has been deteriorating over the past few years. Last month my wife and I decided that she should move in with us. To prepare for her moving in, I needed to empty my office as she required space on our first floor and my office was the most logical space. While going through old files and folders, I ran across about 15 years of tax returns. I decided to glance through them. I knew what I was going to see. The years that I brokered business loans, were my best and each time that I lost my focus and used the great money I was making brokering loans to start other businesses including three car washes, well, those years were no comparison to the  $200k+, $300k+ years I had experienced brokering business loans. It was proof positive of the income you can make in the loan brokering business versus the other “shiny objects” that distracted me. With that said, you probably want to know – how did I get started? Let me show you how. It’s easy! Too easy! I can’t believe more people are not doing it.

First, just a quick note. I have no formal training in finance. I do have a Bachelor Degree in Communication from Clarion State University. In fact, I was terrible at math and only had one accounting course as it was required for my degree. I really have no financial training beyond that one accounting class. This stuff is so easy, that if you learn one simple formula, and can enter it into a small hand held calculator you can make 100’s of thousands of dollars. I have easily made over a million or more dollars in the finance industry.

Here is how it works:

  1. Find a deal (I show you how easy this is and give you some tricks and tips for making this very, very easy)
  2. Send the prospect a proposal along with your credit application (you can use the form templates I supply for both the proposal and the credit application) with insert your business name on it.
  3. Collect the information and send it to two (or maybe three) funding sources. (I will give you some great information on what funding sources to use, why, and how to get set up with them)
  4. Send out the documents, get them signed, and collect a hefty fee sometimes within a few weeks, sometimes a few months (after the equipment is delivered and installed or the real estate deal closes)

Ok, that might be a bit of an over simplification but really it is spot on. The reality is that by collecting information from your prospect then taking to the funding source of choice can make you tons of money. Once you have a database of good funding sources and understand their “sweet” spots it becomes much easier to fund deals and make great commission checks. So let’s go through it in depth Step-by-Step.

  1. Find a deal – There are many ways to find deals. I am confident that if you spent 8 hours walking the streets of Mainstreet USA you would find at least one, but maybe two or three deals that will require financing now or in the very near future. But really, who wants to “cold call” on businesses. I never did! I worked smarter! I spent most of my time doing lunches or playing golf with guys or girls who sold equipment, or property investors. This allowed me to multiply my efforts 10-fold or 20 fold. Because these relationships would allow me to get possibly 5 – 10 deals from each relationship every year depending on the type of equipment they sold or the many properties they invested in.
  2. Send the prospect a proposal along with your credit application. Here is how it usually goes down. Joe, the guy you took to lunch last week because he sells used construction equipment calls you or emails you and says “Scott, I have a customer interested in getting finance for this Bobcat 753, we want $30,000 for it but he wants to finance, can you call him?” Perfect, your marketing is working! You call the guy and you ask some preliminary questions:
    • What term do you want on the finance? (usually 36,48, or 60 months on an equipment deal and varing information on a real estate deal)
    • What term end do you want? ($1.00 Buy-Out, 10% Purchase Option, or Fair Market Value – I will spend time on these as well in another blog post or module) and/or what type of structure do you want  for real estate deal.
    • How long have you been in business? (I will spend some time on this later)
    • Have you tried to get financing anywhere else?
    • When are you  taking delivery on the equipment?
    • What is your email address?
    • Then you simply thank them and let them know you will be sending them a proposal along with your credit application and that if they get it back to you quickly, you can normally get something in place for them in a few short days.
    • Send a proposal and price the deal as though they will have acceptable credit (I spend quite a bit of time on pricing strategies and how you can win deals while still making great commissions)
  3. Collect the information and send it via email to two (or maybe three) funding sources. This is where a bit of knowledge will help you, but the reality is that when you first get started you will have one to three main funding sources that your deal will go to. They will normally be your “gatekeeper” for finding out any problems that the customer might be having with their credit. As you grow, you might want to subscribe to a service that allows you to pull their credit (on deals under $75k) before you send it to a funding source. On deals over $75k a more robust credit package will be required (I cover this later lessons).
  4. Send out the documents, get them signed, and collect a hefty fee. The fee is typically sent to you from the funding source or funded to your bank account the day they pay the equipment vendor. You will be surprised how many times that it goes just that easily. My experience is that the business usually has very little competition. Many times, you will be the only quote they receive and the deals close quickly and easily.

So, you are probably asking yourself… What kind of fee could I expect to earn on a $30,000 Bobcat deal. This is where it gets a bit interesting as different brokers have different opinions on this. I know that on a deal that small, I would price the deal with a minimum of 4 points which means that the minimum fee I would collect is $1200. All for about two – three hours of work total. What is interesting is that because you are collecting a 4% fee doesn’t mean you are raising your customer’s rate by 4%. In fact, you can collect your fee and still have a very competitive rate.

PLEASE, PLEASE, PLEASE, Leave a comment below. It’s what keeps me going!! You can tell me how great I am, post a question, or, even disagree. I want to have conversations with anyone interested in getting into the business loan brokering business!




  • Andrei L

    August 11, 2016

    Hey Buzz, What’s the best online service for pulling someone’s credit?

    I have a small-ticket guy who asked me what his credit was and I felt embarrassed telling him that I couldn’t find out until I sent his app. to my funding source lol

    • Scott Glover

      August 11, 2016

      Andrei, This has always been a challenge for me (and most small ticket equipment finance guys). When you contact most of the credit scoring companies they will not approve you to pull credit unless you are a residential mortgage broker. How I was able to overcome this was establishing a really strong relationship with one of my local banks who always received my “first looks”. They didn’t mind because they always knew they would get first shot at the business. The trade off was that they would get some pretty terrible credits from time to time and they would always tell me their scores. My credit apps have language that allows them to discuss and for me to send out to others for review. I also had a few national small ticket companies I could send app only deals to. Hope this helps!

      • Andrei L

        August 11, 2016

        Thank you for the quick reply wow.
        And yes this helped greatly, now I know what I gotta do
        greatly appreciated

  • David Lawless

    September 28, 2016

    This is fantastic, I’m based in Scotland and have already started, I’ve been chapping doors on the high street and it’s been difficult, but I watched your videos over the weekend, met with a telecoms company today and they literally asked me to look at a deal there and then for £297k, 36 month lease. It works!!!

    What about the paperwork side to make sure you don’t get screwed out of a fee?