How Much Money Can I Make?

There are four parties to a leasing transaction:

1. The seller of the equipment (called Equipment Vendor)
2. The user of the equipment (called End User - Lessee)
3. The funding source (Bank or Leasing Company)
4. You, the Broker

You bring these parties together and are paid by the Funding Source immediately upon closing the transaction.

Here is a typical transaction.

1. Your client, a computer company (Vendor), sells a $40,000 computer to a retail
establishment (End User - Lessee).
2. The Lessee chooses to lease rather than purchase the equipment.
3. The Vendor refers you to the Lessee to complete the transaction.
4. You arrange the lease with a Funding Source by taking a credit application and completing the lease documentation.
5. The computer equipment is delivered to the Lessee by the Vendor. The Funding Source pays the
Vendor for the cost of the equipment and pays you, the broker, for the commission.
6. The Funding Source then bills the Lessee periodically (monthly, quarterly, seasonally) for the lease payments.
7. Your profit is determined by the number of points that are added to the equipment cost. Typically
between 1-10 points can be added to each transaction.

As an example, in this case you add 5 points to the cost of the computer. Your income is:

$40,000 (equipment cost) X .05 (points) = $2,000 (your income)

This income is paid to you by the Funding Source at the time this leasing transaction is closed.

These transactions often occur within 1-2 weeks of your initial contact – so it is easy to see how the number of transactions can add up to a significant income.

Due to the fact that the broker maintains a low overhead, a large majority of these revenues represent profit to the broker.

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