How Much Do Factoring Brokers Make? And Why the Best Ones Are Changing the Math
If you’re considering becoming a factoring broker or you’re already brokering deals and wondering where you stand, here’s a direct answer. Factoring broker income at the industry standard is 10% of the revenue generated on each deal, paid monthly, for the life of the deal. Experienced brokers who send consistent volume, sometimes called super brokers, negotiate up to 15%.
I’ve been in factoring since 1994. I’ve worked with hundreds of brokers. The 10% standard has barely moved in three decades. But what’s changed is that some brokers have figured out the math doesn’t have to stop at 15%.
The Standard Factoring Broker Income
A broker finds a company that needs factoring. They refer that company to a factor. If the deal closes, the broker earns a commission on the revenue the factor collects. On a typical deal generating $5,000 a month in factoring revenue, a broker at 10% earns $500 a month. At 15%, they earn $750.
Those payments continue as long as the client stays with the factor. Factoring clients tend to stick around. We have clients who’ve been in the same portfolio for over 20 years. So the residual income can be meaningful over time.
The challenge is that you’re building someone else’s asset. The factor owns the client. The factor owns the portfolio. The factor controls the pricing and the relationship. If the factor gets acquired, changes their terms, or decides to restructure, your income stream is subject to their decisions. You own nothing.
What Top Brokers Actually Earn
The brokers who make real money in this industry do two things. They send volume consistently and they negotiate better terms. A super broker placing 5 to 10 deals per year with a factor, each generating $3,000 to $10,000 in monthly revenue, can build a residual book worth $10,000 to $25,000 per month over a few years.
One of our BRS partners was making roughly $15,000 a month in passive income from deals he’d placed. Good money. But he was earning 10% of what those deals actually produced. The factor on the other end was keeping 90%.
He switched to our BRS program. Same deals. Same clients. Same relationships. Now he earns 50% and owns the assets.
The 50% Alternative
At DARE, we built BRS for exactly the broker who reads those numbers and thinks there has to be a better way. BRS stands for Back Room Services. You originate the deals. We handle underwriting, funding, collections, portfolio management, compliance, and reporting. Revenue splits 50/50. You own the portfolio.
No buy rate. No interest charged to you from us. No losing your clients if you decide to leave. The assets are yours.
Our largest BRS partner earned $100,000 in a single month. That’s not a projection. That’s a real number from a real portfolio that person owns.
The difference between 10% and 50% on the exact same deal is not a rounding error. It’s a completely different financial outcome over 5 or 10 years of building a book.
Who Makes the Switch
Not everyone is built for ownership. Brokering is lower risk. You refer the deal, collect your check, and move on. No capital required. No operational responsibility. That works for a lot of people and there’s nothing wrong with it.
The people who switch to BRS are the ones who look at the math and can’t unsee it. They’re entrepreneurial. They want to build an asset they own. They want to control the client experience and the pricing. They don’t want a cap on what they can earn.
We’ve seen it work for career brokers, ex-bankers, small factor owners who were tired of running operations, construction executives who knew the industry, and commercial real estate brokers who understood finance and wanted to skip brokering entirely.
We can also help arrange the financing for your side of the 50/50 split. You don’t need to fund it out of pocket on day one.
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Schedule a call with DARE Business Capital and we’ll walk through the economics of BRS vs. brokering using your actual deal flow.