Business Loan Broker Career Facts

Business loan brokers deal with the problems of business loans. These loans  can involve real difficulties for businesses who are deep in debt and whose ability to do business is severely impacted by loan issues.

The Work Environment

Loan brokerage involves literally "buying and selling" loans. For a fee, a loan is transferred to another lender. This is a rather complex process, but it's basically like transferring your mortgage from one bank to another.

Note: This isn't the same thing as "loan securities". This is about the transfer of actual loans.

The difficulties for business loans brokers start with the condition of the loan and the borrower. Transferring a loan depends on the willingness of the new lenders to proceed. There are some very important issues a prospective lender has to address. The business loan broker's role is commonly based on finding willing lenders. That process may involve some risk, because of the possibility of loan defaults or other issues, and brokers take out insurance cover for their liabilities. Liabilities on brokers can also include liability for information provided to lenders, so this coverage may be high.

In some cases this can involve various degrees of debt management, too. The business loans broker's role isn't specifically related to direct management of debts, but the reality of business loans is that in order to transfer debt, restructuring is often required. 

The information required to successfully transfer a loan is:

  • Business credit rating: Like people, businesses have credit ratings which affect their ability to obtain finance.
  • Loan repayments history: Naturally, any new lender needs to see proof of ability to pay.
  • Business accounts data: Supplementary information and verification of data as required.
  • Any issues regarding other debts or liabilities: This is where the potential for debt management scenarios comes in. One of the common problems with business loans is that over time a series of loans through different lenders is accumulated. To manage these loans effectively, "consolidation of debt" is a common strategy, turning all these loans into one loan. This strategy can often produce significant savings for borrowers, and improves their chances of getting new finance.
This provision of information is a formal process, and like any loan, the borrower is committing themselves to providing accurate data. The successful outcome is based on the new lender accepting the data, and approving the new loan. In many cases new terms may be imposed on these loans for successful transfer.

Wages: $65,000 to $110,000. Consultancy fees are much higher, based on contracts.

Hours: Standard hours, although workloads affect these hours.

The Career Environment

Business loans brokers usually have qualifications in business, finance, marketing, accountancy, or other related areas. Brokerage businesses can be highly lucrative, and experts in the field often go into business for themselves. Networking is a primary business methodology at higher levels of the industry.

At the top of the profession, business loans brokers are consultants, working on loans strategies for major corporations. These brokers are much more involved in debt and risk management, acquiring formal qualifications in these areas as well as extensive experience and a strong professional reputation.