Some in the industry remember nearly 15 years ago when YAHOO Hot Jobs authored an article literally stumbling upon one of the most important specialized financing niches on the planet…that of factoring, or to be more concise, accounts receivable factoring. The article debuted in 2007-2008 during the Global Financial Crisis and economic frenzy that was set in motion by the Lehman banking collapse. With jobs hard to get and layoffs mounting, more and more online blogs and recruiting websites posted alternative methods of employment that could find some port and weather the storm. What probably shocked most at Hot Jobs to be sure, was that not only did they uncover an industry that would likely provide excellent jobs to help weather the economic storm, they found an industry that would actually BENEFIT from the storm. They weren’t quite sure what factoring was entirely all about, but they knew it was good….and good enough to make their “Top 10 Hot Jobs List”.
But Hot Jobs Missed the Best Part!
With a little online investigation, anyone can understand why the factoring industry does so well exactly when the banking industry does so poorly. The factoring industry has been a cornerstones of creative business financing since the dinosaurs disappeared. Well…not quite that long ago, but you can see a little bit of factoring’s history right here. But when digging out and including factoring as one of YAHOO’s 10 Best List, researchers certainly deserved a pat on the back. After all factoring is not a household word and for that, kudos for a great job were well deserved. But, the truth is, YAHOO’s researchers totally missed the best Hot Job of all. The real Hot Job they missed was the completely “under-the-radar” business development niche unique to the factoring industry known as “freelance factoring broker”.
So What is a Freelance Factoring Broker?
So just like banks and traditional lenders employ loan officers to source new clients for the institution, factors and alternative commercial finance lenders employ business development offers or BDOs to do the same thing. But here is where the difference comes in. Factors, unlike most banks, not only employ BDOs to source new clients, they also pay referral fees to virtually anyone that directs a new client for financing to the factoring firm. In fact, factors and their BDOs constantly seek to build networks of such referrers, most of which are from the ranks of local professionals such as accountants, bookkeepers, and even bankers. However, beyond the local community networks that we can term as “occasional” referrers, there also exists a group of career-driven individual entrepreneurs that take client referrals to a whole new level. This is the business of factoring industry freelance factoring brokers. And this is the true “Hot Job” that the research crew at YAHOO entirely missed.
Will YAHOO Hot Jobs Discover Factoring Again?
No question, some portion of the 2007-2008 history is now repeating itself. Banks are now failing and those that are not, are not lending to businesses anyway. And, if you are an investor in commercial real estate in any sizable way, just like 2007-2008, you are likely already looking for the door. But, for those mobile creatives and home-based entrepreneurs seeking an additional part time career that can help to get you through the tough times ahead, keep your eye out for factoring opportunities. This is the time to explore this industry and learn more. And, you can find out more about this unique vocation FREE, with our Commercial Finance Magazine YouTube Challenge. Just click here for the details on the IACFB YouTube Channel.