Learning Lab
How to Submit a Deal
Deal Submissions
Lesson Video
Submitting a Deal
Submitting a prospect for financing is a straightforward task at IACFB. All IACFB member websites include a universal worksheet as a quick application. Called a “Company Profile,” this application is used for virtually all financing types. It is primarily for you, the broker, to ascertain what kind of financing is needed and available for the prospect. It also provides the basic information required from the lender’s underwriting department to be able to go forward and view things such as UCC filings, tax issues, and more.
Whether you are starting your business as an Agent or Broker, Company Profiles are included with all DataMax website templates. They are automatically downloaded in PDF format for business owners viewing your site and requesting a quotation.
Introduction to Lists and Targets
Submitting a prospective client for financing to a factor is a relatively simple task, and as the referring broker, you are only required to complete two documents. You will need to complete a:
- “Brokers’ Agreement”
- “Company Profile”
Selecting a Factor
Based upon your completed “Company Profile“, you will need to select a factor that is suitable for your prospective client based upon the deal’s size and the industry of the prospect.
Calling / Contacting the Factor
When you have a possible submission with a completed “Company Profile“, you will then always call in to speak with a business development officer and request a Broker’s Agreement for a prospective submission. Factors (and the industry) are very honest, but just to be on the safe side, always receive and execute a Broker’s Agreement.
Terms and Conditions Letter
If the factor is interested in your submission and, if after contacting the prospective client opts to go forward with a financing proposal, a short “Terms and Conditions” letter will be provided to your submission to formally outline the factoring facility.
Related Classroom Lessons
Factoring Contracts
Once the Terms and Conditions letter is signed by your prospect and returned, factoring agreements are forwarded to the prospective client for execution. Once signed and returned to the factor’s underwriting department, the first funding can proceed.
When submitting a prospective client to a factor for financing, you will always submit a “profile” of the company and it’s owner. Although your prospect will ultimately be required to complete an application from the factor, your completed “Company Profile” provides the factor with contact information and a little about the company you are submitting. (Click Here)
In most instances, you will request a Broker’s Agreement before submitting a prospective client. Although most are similar, they are not all the same. (Click Here)
When you submit a deal for funding, you will need to select a factor as the funding source. The factor you will often select will be one that prefers to finance your prospective client’s industry and is withing the factors lower and upper funding requirements or limitations. (Click Here)
For some new referrers, they prefer to use IACFB as they partner is submitting their first deal or two. IACFB’s PAL Program has an option for new referrers called PAL Affiliates and which supports an SQL System for submissions. (Click Here)
Earning commissions and receiving commission reports. (Click Here)
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