For freelance factoring brokers and commercial finance consultants, success in this industry isn’t about making one-time sales — it’s about building residual income through long-term client relationships. And if you’re still on the fence about whether factoring is a worthwhile niche, consider this powerful truth:
A single satisfied client can become a steady stream of income for years — and can even bring others with them.
Let’s break it down.
Residual Commissions: The Foundation of Your Business
When a small business client begins factoring invoices, they typically start by selling $100,000 in receivables each month. Most brokers receive 0.50% to 0.75% of the invoice volume as monthly residual commission. That means:
- $100,000 in invoices
- x 10% of the factoring fees earned as a commission
- = $500 to $700 per month on average
- x 12 months = $6,000 to $8,400 annually
- For just one client.
Now here’s where the real value begins to show…
Clients Grow — and So Do Your Commissions
Factoring is more than just cash flow — it’s a growth catalyst. With funding in place, your client now has the resources to take on larger orders, hire additional staff, expand their marketing, and move with confidence.
It’s not uncommon for a client’s invoice volume to rise dramatically in the first 12 to 24 months:
- $150,000 monthly = $750 – $1,050 per month
- $200,000 monthly = $1,000 – $1,400 per month
- $300,000 monthly = $1,500 – $2,100 per month
With zero extra effort on your part, your income grows as your client grows — automatically.
Longevity: Keep Getting Paid Year After Year
How long does a factoring client stay with you? Many brokers report keeping clients for:
- 3 years as a baseline
- 5 to 7 years as the average
- 10 years or longer in strong relationships
Imagine this:
You help a client get started with $100K/month in invoice volume. After 3 years, you’ve earned $21,000+ in commissions — and that’s without factoring in growth or referrals. Add in monthly increases, and you’re looking at $40,000 – $60,000+ from just one business relationship over time.
Referrals: The Gift That Keeps on Giving
Satisfied clients are one of your best marketers.
When you help a business grow, they’ll likely talk about it — with vendors, customers, friends in their industry, or even their accountant or banker. Many successful brokers build their pipeline entirely through referrals from a small group of loyal, well-served clients.
And when you bring on those new clients?
You start another stream of recurring income — building a portfolio of paying relationships that generate income month after month.
The Bottom Line: Build a Portfolio, Not Just a Paycheck
As a factoring broker, your job isn’t to close one big deal. It’s to build a stable base of clients who trust you, grow with you, and continue to pay you for the life of the relationship.
Each client = a cash-flowing asset in your business.
And the best part?
With just a few dozen clients, it’s entirely realistic to build a six-figure residual income — working from your home, on your own terms.
Ready to Take the First Step?
If you’ve ever dreamed of owning a business that pays you monthly, grows without limits, and builds real value with every connection you make — factoring is your opportunity.
It only takes one client to start changing your financial future and one of the quickest ways to get started in the industry is with the purchase of the Broker’s Guide to Factoring…now available from Amazon.com