If your business needs some kind of finance, but you’re not 100% sure what kind of loan to apply for or from which provider, a finance broker can help. When choosing a commercial finance broker there are important factors to consider, as you need to be able to trust them and the service they are offering.
What do you need to look for in a commercial finance broker? How do you know which company will offer the best deals and present you with all suitable options? How do you know which brokers are trusted in the industry and have been recommended by other businesses? Here are some top tips for choosing right broker for you.
Find a specialist
You might not have a clue where to start when it comes to business finance – but if you have a general idea of the type of loan or funding you need, then find a broker which specialises in that. Most commercial brokers will be able to offer a wide range of finance options, but they may specialise in certain types. For example, there are alternative finance solutions experts which can help businesses match up with investors for peer to peer lending.
Make sure the broker is accredited
The financial services industry is very strictly regulated – and you should check if the broker is accredited by official bodies. Which organisations is it a member of? You’ll find that most brokers will make this information readily available on their website, and if not then it could be a sign to steer clear. Is the broker a member of the NACFB and the Financial Ombudsman Service? When brokers are backed by these organisations, it gives you peace of mind.
High acceptance rate
You don’t want to waste your time going through a number of brokers trying to find finance – so look for a high acceptance rate from the start. A commercial broker should be confident in their rate of success for obtaining funding for clients. If you’ve already been turned down by a traditional lender then you don’t want to keep being rejected, so pick a broker with a high chance of success.
How many years of experience does the broker have? What businesses have they worked for, and which lenders do they work with? It’s always a safe bet to choose a commercial broker which has relevant experience – read up on case studies and see what past clients have to say about them.
You could be putting your life in the hands of a commercial broker – be sure they are trustworthy.