If you own a business, it is likely that at some point you will require commercial finance, whether to help you to grow and expand, purchase equipment, stock, or labour, or to help with cash flow through a difficult period. Business finance covers a wide array of products, and there are many lenders offering commercial finance deals to businesses of every size and in every industry; but what product, service and lender is the right fit for your needs? This is where a broker is invaluable. Below we will look at 5 reasons to use a commercial finance broker.
Why Use a Commercial Finance Broker?
When your business needs finance it could be tempting to go directly to the finance company. In many instances cutting out ‘the middle-man’ saves time and money, however, in the case of commercial finance this is not the case. The middle-man, also known as a commercial finance broker, is best placed to get you the best deal to suit the needs of your company. Here are 5 reasons why using a commercial finance broker is the smart choice:
- Expert Financial Guidance
- Extended product range
- Time and Money
- Best Interests
Expert Financial Guidance
Commercial finance brokers are experts in finance. They have an array of knowledge regarding the full scope of finance products available. It is often the case that business owners are in search of a specific type of finance, that isn’t the correct type of finance to meet their needs. A broker, with their vast knowledge of the different types of finance available will be better placed to advise you on the best type of finance to meet the current needs of your business.
Extended Product Range
One of the most advantageous reasons for going to a commercial finance broker would be their access to an extended range of products. If you go directly to a finance provider what is available, the rates and offers will be limited to that specific company. A broker has access to many finance providers, they have knowledge of the best deals currently on the market, and also which companies would best align with your type of business.
Experience in Commercial Finance
After identifying the correct type of finance for your business, and the best provider to meet your needs, securing the finance can be tricky. Providers may ask for specific documentation, there may be requirements to complete application forms with certain information to ensure success. A broker has completed this type of application on many occasions, and knows what information needs to be provided to ensure that the application is successful. With the help of a broker, and their wealth of experience, securing the finance will be a more straight-forward process. Broker’s usually have access to a dedicated contact or team within the respective finance providers, enabling them to quickly seek clarification if there are any uncertainties throughout the application process.
Time and Money
Using a broker will undoubtedly save your business both time and money. With the assistance of a commercial finance broker narrowing down the options, as well as the application process will be much swifter. With the brokers whole market approach and vast industry expertise in finding you the best deal, you will certainly save money through such factors as lower interest rates or arrangement fees. There is also the fact that your time can be spent on what you are good at – running your business, as opposed to your time being consumed by finding a deal and liaising with finance providers.
Using a broker for your commercial finance is the best option, particularly when you require advice and haven’t had many previous dealings with finance companies. A broker is working for you, to get you the best deal, they will give you impartial advice and aren’t tied to any specific company. Going directly to the provider, they will sell you the deal that they have available, however, this may not be what is best for your business; a broker has the best interests of your business at the forefront when offering advice and helping you through the application process.
Choosing a Commercial Finance Broker
A commercial finance broker can help you to secure the best finance deal for your business, guiding you through the process in a simple and timely manner. If you have never used a broker, you may like to ask for recommendations or look at reviews. You can see recent reviews for MC Commercial Finance, and then contact us to discuss how we can help you to source the right commercial finance for your business.