Besides usual advertising, send direct mail letters to people telling them how you can assist them in their money problems. Some money brokers have a combination letter-display ad made up and printed on the back of postcards. This is quite a bit less costly than sending out letters, and could possibly demote your image somewhat, but on the other hand, those money brokers using postcards say they're very effectual because the recipients are more likely to save a postcard than a letter.

Here is a simple explanation of how the direct mail system works: You mail out your letters or postcards to the real estate brokers and small businesses in your area. Then a couple of days later, you follow up with a phone call to these people. You make out yourself, ask if the card or letter had been received, and then ask how things are going, if possibly you can be of any help to them. To end with, you ask them to keep you in mind, and to be sure to let you know if something comes up that you can handle.

On surveying you will notice about one-third of the people you talk to will say that they don't instantly need money, but they be acquainted of individuals or business looking for help. When you do get a recommendation, be sure to draw out as much information as possible, and then make a contact with them.

Letters can also be sent in exploration of lenders and private investors by you. These efforts will really help you in setting up your business.

When you have place a loan or an investment proposal together, and you aim to sell it to a lender, you should first identify the lending officer or the head of that lending organization. If you crave to present your package to a private investor, you will more than expected have to call his legal representative, broker or investment counselor.

To present your package to the person you need to place a phone call to set up an appointment. Thus, during the course of this telephone call, you should explain the lender on the highlights of your client's loan proposal. If he's attracted, he'll almost certainly want you to send him a written summary. After he's received the summary and decided he's interested, he'll get back to you and set up an interview with you, and then with you and your client.

You and the borrower should practice the entire loan proposal and have all examples, charts and graphic illustration ready to go for a winning presentation. Any lender eager to pay attention at all wants to hear the full story, and when they have a query, they want the answer without vacillation. So be sure you're ready when you show up for that loan-selling interview - with a comprehensive presentation.

Once you begin processing loan request, you'll find that about eighty percent of the loans approved to small businesses are made by commercial banks. A few more than ten percent are made by friends or relatives of the borrower, and about three percent by finance companies. Another three percent will be approved by insurance companies. This will give you a thought of possible money sources for your clients.

Keep this in mind, when a potential borrower tells you how much money he needs, and what he wants to use it for, it is your job to assess his proposal and match his particular proposal with sources likely to be interested. As you construct your list of money sources, you will find those that specialize in specific categories of loans - for apartment buildings, medical facilities, recreation setups, and a myriad of others.

Most money brokers cultivate the savings and loan companies, union pension funds, life insurance trust companies, credit unions, private investor groups, and even the small loan companies. The important thing to memorize is that if you're going to bring together people needing money and people with money to lend, you have to persistently expand contacts in order to build your list of money sources. It is very obliging to get to know your local bank officials because oftentimes they can pass on you to a person you can truly serve, because he doesn't qualify for a bank loan.

You will find out also that most sources of venture capital, money for business start-ups - want an equity share of the business. They usually don't require that the money they put up be reimburse, because they're hopeful to make their profit from a share of the business as it grows and becomes more and more lucrative. They especially like to get in on the "ground floor" of small companies who plan to issue public shares of stock when they begin to grow.