When looking for a work-from-home opportunity that has low overhead, and is a legitimate business, becoming an auto loan broker is a good choice. Auto loan brokers help people who are looking to purchase a car, get the financing they need from a lender. They work with multiple lenders to find the best deal for the customer. Loan brokers are essentially a “middle man” between the buyer and lender, and do not provide any of the financing. This is a business that can be done right from home with minimal equipment such as a phone and computer.
Using Auto Loan Brokers
Many people with poor credit prefer to use a loan broker because loan brokers have relationships with many lending institutions and are often capable of finding financing from lenders who cater to high-risk clients. However, other clients use brokers to help find them the best financing deal, independent of the dealership. Dealerships often have relationships with certain lenders and may get customers a great deal from the lenders they work with. But, there many be better deals available from other lenders and that is where a broker can be of use.
Education and Office Skills
It is important for anyone considering becoming a loan broker to have a basic understanding of finance and the lending industry. If your skills in this area are not strong, then it is recommended that you take classes on finance. Having degrees in finance, accounting or similar field, as well as certifications gives you credibility and makes you an appealing option to potential clients.
You must also know how to use certain computer programs to keep track of clients, and calculate billing and payments. Consider taking a basic course in computer spreadsheets if this is an area you are not strong in.
Building a Business
Before someone interested in becoming an auto loan broker can take on clients, they have to do some back end business preparation. It is important to meet with lenders in the area. Find out what their criteria for granting auto loans is and what their rates are like. Also, see what their policies are about giving you referrals or letting you advertise at their locations. The same is true for auto dealerships. It is smart to build relationships with the local auto dealers, especially small ones who might not have financing companies working with them.
Let everyone you are acquainted with know that you are an auto loan broker. Ask for referrals from friends and family any time they hear of someone looking to purchase a new car. Advertise for free as much as possible using social media and community bulletin boards. Set up your office and begin accepting clients.