How to Become an Equipment Leasing Broker

Equipment leasing brokers can earn a six figure income in a $200 billion a year industry. Getting into the equipment leasing business is not difficult, and does not require a special license. It is a simple process of following some rather straight forward steps. It can be a rewarding career, and the demand for equipment leasing brokers has never been better.

Difficulty:

Moderately Easy

Instructions

Equipment Leasing, A $200 billion a Year Industry

1. Get the training. Several reputable companies providing training in equipment leasing can be found on the internet under equipment leasing training. Do the necessary work and make comparisons to assure you are getting good value for your training investment. Equipment leasing training companies can easily be found on the internet also.

2. Cultivate an industry niche of expertise. While this is not necessary, it provides greater satisfaction when you are engaged in an activity in which you are knowledgeable and enjoy. Find something you like to do. If it's bowling, specialize in bowling equipment. If you are a closet computer geek, you might want to consider computer leasing. Knowledge about the industry and the equipment helps in building relationships with your vendors and your prospective customers. The more you know, the more people will be inclined to deal with you. There is no shortage of industry niches as 80% of all businesses lease at least some of their equipment.

3. Build your prospect list. One major leasing company is a strong advocate of the 100/30 Principle. According to this principle, you need 100 leads in your customer database at all times. Of the 100 leads, 33 will be duds. Another 33 will convert to prospects, and ultimately to customers within one year. The final 33 leads will convert to customers within 30 days. The goal of the 100/30 principle is to have at least 30 active deals working at all times.

4. Develop your funding sources. The most common sources for funding are equipment leasing finance companies that specialize exclusively in equipment leasing; established equipment leasing brokers with their established network of funding sources; other commercial finance companies that offer a complete menu of commercial finance products, including equipment leasing. It is useful to note that many of the aforementioned companies also provide training.

Tips & Warnings

• Equipment leasing is just one facet of the commercial lending industry. Many equipment leasing brokers and agents round out their inventory by offering customers an array of commercial financing products. As you delve deeper into equipment leasing as a career, you may want to explore additional aspects of commercial financing.

References

• Leasing Institute of America
• Nations Transaction Services - Equipment Leasing