How do I Become a Commercial Loan Broker?
The requirements a person will face when attempting to become a commercial loan broker depend on where he lives and the laws in his jurisdiction. Some jurisdictions do not require independent commercial loan brokers to secure licensing, but there are many that do. As such, it’s critical to learn the unique requirements of the particular jurisdiction before proceeding. Besides licensing, a person who wants to become a commercial loan broker will usually need an office from which to work and basic office supplies and equipment.
While a person in this field doesn’t necessarily need a college degree, earning one in a finance-related major may prove helpful. Otherwise, an aspiring commercial loan broker may take courses or enroll in a training program that provides him with knowledge important for understanding and processing loan applications, evaluating credit worthiness, and even developing connections in the commercial loan industry. Business courses may prove helpful as well.
An individual who wants to become a commercial loan broker may get valuable experience in the field by working for a commercial loan brokerage before striking out on his own. He may, for example, seek a job as a sales representative, assistant, customer service agent, or loan clerk, absorbing all the knowledge he can before striking out on his own. To work for a commercial loan brokerage, instead of starting an independent business right away, an individual may only need a high school diploma or its equivalent.
Once an individual is ready to begin working as an independent commercial loan broker, he’ll need a place from which to operate his business. Some people buy or rent commercial property in which to begin their commercial loan businesses. Others, however, may begin this business in a home office.
If licensing is required in his jurisdiction, a person who wants to become a commercial loan broker will usually have to complete a license application and pay the accompanying fee before getting started. Typically, he’ll need to wait for approval before he begins. In some places, an individual in this field will need to obtain a surety bond as part of the licensing process. Some jurisdictions also require prospective brokers to have a minimum amount of education or experience in a loan-related field. For example, some jurisdictions require 20 hours of education or experience.
To have access to a number of commercial loan products, an aspiring loan broker may make an effort to get to know loan officers and the types of loan products they have to offer. Some commercial loan companies actively seek business from brokers and make it easy to register or sign on as a broker for their products. Once an aspiring broker is prepared to start brokering loans, he may begin advertising his services as a commercial broker via classified ads, fliers, telemarketing, and websites.
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