What Is a Business Finance Broker?

A business finance broker is a person who manages the capital that comes in or goes out of a business. These brokers may find investors for a client business when more capital is needed or they may find investments that their clients can put money into in order to generate more capital in the future. Some of these brokers specialize in stocks or business purchases, while others have a breadth of knowledge that allows them to invest and attract a variety of types of investments. Unlike other types of brokers, a business finance broker works specifically with businesses.

Business financial brokers find capital for businesses either in the form of investment or as loans that a business can use immediately when it needs more money. Brokers are often able to get better rates on loans than a business owner because they have long-standing relationships with lenders. They also may be aware of businesses looking to invest and may be able to match up investors with a client's business.

The other main aspect of a business finance broker's job is investing for a client. These investments can be in a variety of different areas, including real estate, stocks, bonds, commodities, or even other businesses. The hope for these investments is that they will pay off at the end of a certain amount of time, providing more capital for the client to put back into their businesses.

A large company may have a business financial broker on staff full time. These brokers may be kept busy investing and attracting investors as needed. Brokers may also work in a firm that handles a number of large and small client businesses. One broker might specialize in a particular area because he can rely on the other brokers in the firm to provide expertise in other areas. Alternatively, a business financial broker may work as a freelancer, hiring out his financial services to a variety of different clients.

A business may choose to hire a business finance broker because he has many contacts with other businesses and lenders. In exchange for his expertise, a business finance broker receives a commission on the sales or loans he facilitates. Firms and corporations that keep brokers on staff commonly offer a salary or a salary plus commission.