Many brokers who are involved in such areas as real estate, health insurance and service providers, talk to business owners on a daily basis. In many cases, these owners share their concerns and day to day challenges of operating the business. One of those challenges for many businesses is maintaining an adequate amount of working capital on hand to ride out the downward cycle of our economy. Invoice factoring is a way for businesses to stabilize cash flow and give them a predictable and necessary layer of working capital. A broker who is aware of the company’s cash flow problems may suggest this form of financing and give us a call.
We have developed several relationships with brokers that are unaffiliated with accounts receivable factoring. Once they express an interest in working with us, we execute a commission agreement. This agreement allows 40% of all commissions earned during the life of the contract to be paid out to the rerferring source. All the co-broker needs to do is provide some basic information about the company to us, such as the type of business, amount of receivables generated per month, and the main contact’s phone number. We also ask they make the initial introduction. We take it from there by making sure the application and supplementary information is packaged. We will keep both the co-broker and the client appraised on the status until the transaction is closed. We also follow up to make sure the client is happy with the service.
Co-brokering is a good way to receive supplemental revenue and increase customer goodwill. Call us today at (417) 849-7394 or email us at kenth@ocflink.com to discuss a co-brokering arrangement.

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