Small business loan broker

Usually the lender pays you a commission when a loan funds. Some brokers also charge the borrower a fee, where state rules allow.

A percentage of each funded loan, paid by the lender. Deals take weeks to close, so income can be uneven at first and grows as referrals build.

• Clear explaining of numbers and terms
• Building trust with business owners
• Following up and staying organized
• Networking with accountants and bankers

• Check your state's rules: some states require a broker or finance license, others do not
• Check fee disclosure and advertising rules, and never promise approval or rates
• Consider errors and omissions insurance as well as general liability
• Protect borrowers' financial documents with secure storage and file sharing
• Commission only income can be slow to start, so keep a cash buffer

Startup costs are typically estimated at around $1,000 to $5,000, depending on your software, secure file sharing, insurance and any licensing fees. These are estimates, so check what your state requires.

Monthly revenue is typically estimated at around $1,500 to $7,500, depending on how many loans fund and the commissions or fees involved. Commission-only income can be slow to start, so treat this as an estimate.

Check your state's rules, since some require a broker or finance license and others do not. Check fee disclosure and advertising rules, and never promise approval or rates. Consider errors and omissions insurance.