When it comes to managing your business finances, it can be tempting to take a do-it-yourself approach. After all, there’s an abundance of information available online and a variety of tools and resources that can help you make informed decisions. However, managing your finances can be complex, time-consuming, and stressful, especially if you’re not an expert in the field. This is where a commercial finance broker comes in.
A finance broker is a professional who acts as an intermediary between borrowers and lenders, helping to facilitate transactions and ensure that borrower gets the best possible deal. They work with a range of financial products, including invoice discounting, cashflow loans, commercial mortgages, trade finance, asset finance, as well as personal guarantee insurance, credit insurance, business planning and corporate finance services.
If you’re wondering whether or not to use a finance broker, here are some key reasons why it may be the right choice for you:
Expertise and experience
One of the primary benefits of using a finance broker is the expertise and experience they bring to the table. A good finance broker will have a deep understanding of the financial landscape and the different products available, as well as the requirements and application processes for each. This means they can help you navigate the complexities of securing a loan or other financial product, and ensure you get the best deal possible.
For example, a finance broker can help you identify the type of loan or financing that best suits your needs, whether that’s asset finance, invoice financing, or a business loan. They can also help you understand the various terms and conditions associated with each, such as interest rates, repayment periods, and fees. Additionally, they can help you identify any potential obstacles or challenges you may face during the application process, and work with you to address them proactively. Ultimately, working with a finance broker can help you make more informed decisions about your finances, and ensure you’re able to secure the financing you need on the best possible terms.
Access to a wider range of options
Another key benefit of using a finance broker is access to a wider range of options. While it’s certainly possible to research and compare financial products on your own, a good finance broker will have access to a much broader range of options than you would on your own.
This is because finance brokers typically have relationships with a variety of lenders and financial institutions, including both traditional banks and alternative lenders. This means they can help you identify products that you may not have been aware of otherwise, and that may be a better fit for your needs or circumstances.
Additionally, finance brokers will often negotiate on your behalf to secure more favourable terms, such as lower interest rates or reduced fees. This is especially valuable if you have a less-than-perfect credit score or other factors that may make it more difficult to secure financing on your own.
Negotiation and advocacy
One of the key roles of a finance broker is to negotiate on your behalf and advocate for your interests. This means they can help you secure the best possible deal, whether that’s a lower interest rate, more favourable terms, or a higher loan amount.
A broker can also help you navigate any issues or challenges that arise during the process, such as disputes with lenders or issues with your credit score. They can advocate for you and work to resolve any issues quickly and effectively.
Time savings and convenience
Another benefit of using a finance broker is the time savings and convenience they offer. Researching and applying for financial products can be a time-consuming and complex process, especially if you’re not familiar with the requirements and application procedures for each.
Working with a finance broker helps streamline this process significantly, as they handle much of the legwork for you. This includes researching and identifying suitable products, completing and submitting applications, and following up with lenders as needed. This saves you significant amounts of time and effort and allow you to focus on other aspects of your life or business.
Better chances of success
Finally, using a finance broker can improve your chances of success when it comes to securing financing. This is because a good finance broker will have a deep understanding of the application process, the requirements of different lenders and come up with different solutions for different funding requirements. They help you tailor your application to increase your chances of approval.
For example, a finance broker can help you identify any potential red flags or areas of concern that may be flagged by lenders, and work with you to address them proactively. They also help you present your financial information in the most favourable light possible, which can improve your chances of
Summary
Overall, using a finance broker will help simplify the process of securing financing, provide expert advice, and potentially save you time and money. Talk to us today if you are looking to finance business expansion, property development or looking to turnaround your company. We have the business expertise and relationships with an array of lenders, both traditional and alternative, to help you drive your business forward.