Business owners understand the risk needed to grow a company. Capital and profit need to be strategically invested in order to help the company find success. In many cases, a business loan can give the financial boost that is needed, and a finance broker can guide this process.
According to the Federal Reserve, 59% of business owners applied for financing to expand their company and not to save a sinking ship.
Working with an experienced financial broker to secure a commercial loan can save a growing business a lot of stress, time, and money.
The Role of a Finance Broker
A registered finance broker provides specialized financial advice that is tailored to loan criteria. Finance brokers are able to offer all types of intelligent loans. From small-scale private finance to larger commercial loans.
Finance brokers working with businesses, in particular, specialize in helping companies find the best loan agreement to meet their needs. A finance broker works with multiple lenders to get the best deal.
This arrangement differs from working with a direct lender.
A lender uses their own money and follows their own set of guidelines. Deciding on whether to use a lender or finance broker will depend on the deal that best suits the business.
5 Ways a Finance Broker Help
While a lender certainly offers benefits, there are times when a finance broker can be more advantageous. Here are a few pros of working with a finance broker.
- Simple and Efficient Process
Finding a business loan that benefits a business can be an overwhelming task for small-to-medium size businesses. Finance brokers save time and effort by using their expertise and connections to arrange a loan with reliable sources.
All of the paperwork, lender comparisons, and deductions are made by the finance broker. This leaves more time for the business to focus on daily operations.
- Choose From a Selection of Products
Working with a finance broker opens up a full, market-wide selection of offers. There is flexibility to find compatible loans from a selection of lenders. In addition, a commercial loan broker will have a relationship with these lenders, adding to the level of protection.
Not only is there a selection of loan products, but it’s possible to find the most advantageous deal. By working as an agent, a finance broker fulfills the role of being a trusted consultant and problem solver.
- Cost-Effective Solution to Business Loans
There are often special deals and offers available when finance brokers leverage their relationships with lenders to make arrangements. Money is saved through reasonable interest rates and efficient disbursements.
There are no hidden costs, meaning that there are no unexpected surprises for growing businesses. These savings outweigh the broker fees and can be reinvested into the business.
- Tailored Financing Items
Every business is unique and has its own needs. Finance brokers offer specialist loans that are tailored to meet these needs. These items include the likes of bridging financing, credit line, construction finance, and more.
Experienced brokers understand that each business is unique and have varying degrees of affordability. With this knowledge, they are able to avoid accruing a debt that is unmanageable.
- Broker Knowledge and Expertise
Tailored financing items are made possible by the broker’s knowledge and expertise. A reputable finance broker will have years of experience and be well acquainted with unique commercial loan needs.
Broker knowledge is also valuable in navigating certain financial conditions and requirements needed to finalize the business loan. They can also fast-track certain processes through years of practice and familiarity with fine print.
Considerations When Using a Finance Broker
As with all financial deals, it’s important to enter an agreement being informed. While the services of a finance broker are advantageous, there are a few considerations to keep front of mind.
Affiliations
It’s not unusual for finance brokers to have preferred lenders and stronger relationships. This isn’t necessarily a negative situation, but it’s important to be aware of any affiliations. Asking the right questions will increase flexibility and broaden options.
Responsible Assessment of Data
The finance broker’s organization is accountable to treat your data and personal details in a responsible way. Before doing business with a finance broker, it’s wise to ask about data security policies and privacy agreements.
Area of Expertise
There are different types of business loans available, and each has its own nuanced arrangements. Be wary of finance brokers that claim to be experts in all commercial loans. Rather seek out finance brokers that have solidified relationships and acquired knowledge within a certain area.
Take Advantage of a Finance Broker Today
Does your business need a carefully calculated commercial loan to expand? At Intrepid Finance & Venture, we provide a selection of commercial loans for business growth. Whether you need equipment financing, commercial real estate loans, or asset-based loans – we have you covered.
The great news about working with Intrepid is, we can help you find the best solution for your business. We can provide direct lending solutions as well as broker your financing. Apply for a flexible financial solution today and be guided by one of our experienced finance experts.
