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commercial finance broker

5 Reasons to use a commercial finance broker

25 Jun 2020

Chris O'Shea | Uncategorised

Commercial finance, unfortunately, isn’t something you can learn overnight through a wikipedia page. That is why, while you are looking to invest in your business, perhaps for assets or commercial property, and you need financing options, you need an expert to guide you through it.

Commercial finance brokers act as a middleman service for businesses who are looking to raise finance and need commercial institutions to lend in their favour. They arrange the business loan process from start to finish and usually charge a fee, or are paid a commission by the lender.

It is very difficult to rate the advantages of using a commercial finance broker by importance due to the varying reasons as to why companies consider sourcing corporate finance via a broker.

One of the prevalent advantages obviously being that the broker will carry out all the leg work when seeking the best deal or suitable lender based on the funding requirements and company profile, taking an unnecessary stress off your shoulders. Growing a business is a stressful turmoil in itself, commercial brokers lend that hand you need to ease some of the stress. 

Here are five more advantages of using a commercial broker: 

They do the leg work

One of the biggest advantages of using a commercial broker is that they take the hard work out of finding the best business loan that is right for you. Essentially, they look at your lending requirements and match you to the right business loan lender.

Doing it yourself at one point may have been a little easier, but now there are so many different types of lenders available other than traditional banks, and everyone offers their own set of terms and conditions and wave sparkly perks in front of borrowers to make each lender seem like they are the best one for you.

Most good commercial brokers have been in the game for a long time. They do not buy into the smoke screen of sparkly perks that are hiding high interest rates, they know the industry more than google research can give you.  

They know what the banks want

A fully independent commercial finance broker possesses all the experience, skills and contacts that are essential to get you the very best deal that caters to every single one of your business needs. The broker’s sole aim is to strive to find you a lender with the best financing solution for even the most complex scenarios. A good broker will already have quick and efficient systems already put in place to ensure smooth running of any finance requests.

They will also already have existing links with lenders on their funding panel, which means they have the necessary in-depth knowledge of various types of requests and conditions each lender is most likely to accept. If you think about it this way, it is a broker’s career to know the ins and outs of how all loans work and are bound to make a lot of links along the way.

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Their job is to build relationships with the banks themselves and use their links to secure the best deal possible for you and your business. Especially after providing many banks with so much business through them, you can be assured that using a broker will only increase your chances of getting approved for funding. 

Commercial finance brokers know what a successful application looks like. They know what information, data and documents are required, and they know how banks want them to be formatted and presented. Using a commercial finance broker gives you the best chance of having your loan application accepted. 

They can get you better terms

The relationship that many brokers have with banks helps them to personally negotiate deals, interest rates and fees. Now, this does not mean you will get a huge discount of your loan repayment, it means that they will be able to tweak certain aspects of your loan deal that you may never even think of or be able to do by yourself. 

For example, they may be able to offer an interest only repayment scheme or even be able to take off a small tweek of a percentage of your interest rate. This might not seem like much, but over a 12 month term repayment, the numbers add up in the end, saving you a lot of money. 

Commercial finance brokers have ongoing relationships with financial lenders. They constantly bring them new business. More than this, they constantly bring them viable, profitable businesses they know the banks will want to invest in. Commercial finance brokers can sometimes use this goodwill to get you better terms than you would be able to get on your own.

They will teach you

If you manage to get yourself a good financial broker, they will not only get you a good deal and walk away. As a financial broker they can act as a type of personal mentor, teaching you all you need to know about lenders, loan applications and sharing their financial wisdom with you. They can guide you through what big lenders and other secondary lenders are looking for and what you need to personally do to ensure that you not only get approved for financing but you also get the best possible deal that suits you. 

They’re here for the long haul

As previously mentioned, the information that these brokers have isn’t something you can simply google. It comes with their lifetime experiences, which is the service that you will be paying for. Throughout the course of your career and business, you are likely you need more than one loan. 

A client and broker can build a good working relationship and rapport allowing for easier future applications to take place. You’ll find out after your first time working with a broker that their job is essentially to use their expertise to help you in the most efficient way possible. 

Commercial finance brokers, especially smaller teams, build great working relationships with their clients and the lenders. They will get to know your business and its finances and have a good working knowledge of exactly what your business needs at each stage of its growth. 

Using a commercial finance broker

So, why should you be using a commercial finance broker to help you raise finance for your business? Because they give you the best chance of getting the best deal on the market. 

Commercial finance brokers have the contacts and know-how to ensure that your application is as likely to succeed as possible. Hey know exactly how banks want applications to be formatted and what they want them to include. They know a good business plan when they see one and they know a viable investment opportunity when they see one and they know a bad loan deal when they see one. A commercial finance broker can help make sure your loan application is more successful than if you had applied on your own. 

If you need help with your loan application, or if you want to make sure you are getting the best possible price on the market for your loan, contact us today! Our brokers have a network of contacts throughout the UK’s financial institutions to make sure your business is getting the best funding at the right price. 

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