If you run a business and need to arrange finance you may not have considered using a commercial finance broker. But if you are busy, not sure who is offering the best deals to meet your needs then using a broker may be your best option. It won’t cost you anything (the lender pays the broker) and could save you time and money.
Of course, the alternative would be to approach the bank or lenders yourself or go through the time-consuming process of an online comparison and numerous phone calls. But, what exactly does a commercial finance broker do?
Basic role of a commercial finance broker
Broker are experts in their field and their primary aim is to get you the best financial deal available. Effectively being matchmaker between the business and a lender, doing the hard comparison work for you. Commercial finance brokers will normally have relationships and contacts with various banks and lenders as well as knowing which financial products will suit your needs. This enables them to negotiate the top rates and deals, which your everyday business owner, might not otherwise be able to get a hold of as they don’t know the best suppliers of those products. With some lenders only accessible through a broker as part of proceedings, any business owner could potentially be missing out on lots of opportunities by not going through an intermediary. With so many finance options out there, it can be difficult to know which one is right for your business or sector.
Generally, commercial finance deals are more complex to arrange than residential deals. A lot of commercial lenders have specific sectors which they are happy to lend to and others which they look to avoid. Good brokers will know what kind of finance is right for a business, a business’s sector and the right sort of lenders to go too, specific to your business’s needs. Through a finance broker you should be able to save time not chasing the banks who don’t want to deal with you, but get good rates from the ones which do.
Removing the leg work
By using a finance broker to do the legwork behind a finance deal, it importantly frees up your time and allows you to work on other aspects of the business. Once it has been explained what your business is looking to do and what sort of current financial position it is, then a broker can look for the best package for you. A broker will know exactly the right path to go down and does all the hard work so that you don’t have to.
If you don’t have much experience dealing with lenders, then this is where the help of a finance broker is critical. They have the expertise to negotiate rates and will know the best sort of deal that your business could be expected to get, in its set of circumstances.
Spend to save
When it comes to using a broker, they don’t actually charge upfront fees and are usually paid by the lender. A financial broker is also looking to build a long-term relationship with you, for any future needs and so will be eager to get the best deal for you. Importantly a broker will save you time which you might otherwise spend searching for the right deal or the right lender. A broker takes this right out of the equation and can crack down on finding the best deal for you.