To some people a loan broker can be a bit old fashioned; you might think it’s an outdated career because you can simply apply for a loan yourself. It’s not until you start researching and trying to compare rates that you might find out the reason why businesses often hire a broker.
Think of a loan broker as a travel agent – someone who helps you compare different products and puts you in touch with the right people to get the best deal. Some might argue that travel agents are obsolete now that you can book the majority of holidays direct, online. However some people will always decide to rely on the travel agent for two things – expertise, and a quality service which saves time.
So how can a loan broker help businesses with funding?
Save time and effort
The lending landscape is incredibly vast, and unless you’re a financial expert it can be difficult to understand. Instead of wasting hours on end researching the most appropriate loan for your business, you can entrust this task to a broker. This way you can get on with running your company, while you let somebody else arrange the funding for it.
Just like a travel agent may be affiliated with certain airlines or hotels, a loan broker will also have contacts. They work hard to find you the very best rate, by submitting your details to a range of lenders and seeing if any provider can offer a special rate. You might only have time to compare two or three rates, whereas a loan broker could compare dozens, some of which you’d never heard of.
Expertise and knowledge
Loan brokers are experienced in all the banking and financial jargon that you might not understand. You never want to sign for a loan when you don’t understand the terms and conditions fully – the broker would be able to explain everything clearly and save you agreeing to loan terms you’re not happy with. Take advantage of the expertise and recommendations offered by a commercial loan broker. They will also have a broad knowledge of the alternative finance market, and a host of different options you may wish to explore. A broker may be able to introduce you to a new form of lending you weren’t familiar with, which could save time and money.
Ready to work with a loan broker? Give our friendly team a call today and we’ll find the perfect funding source for you.