Choosing a business finance broker is a difficult task, because from the outside they all look the same. Whether you’ve been trawling the web looking for a loan broker or you’ve met one in person, how can you be sure they are trustworthy? When you’re making a big financial decision you want to know you’re receiving professional advice and getting the best possible deal for your business.
A broker understands the evolving world of business finance, and has positive relationships with a range of lenders. They can also introduce to new opportunities you may not have considered, including a variety of alternative finance solutions. With the right loan broker, you could simplify your options and make sure you choose a competitive finance deal which is right for you.
The world of commercial finance is complex, and difficult to navigate without a broker. But how do you pick the right one? Here are some things to consider when choosing a commercial finance broker.
Check they are accredited
There is no point making enquiries with a broker unless they are accredited by a professional financial body – any finance broker without an accreditation should bring up a red flag. Who is making sure they are working responsibly, and in their clients’ interests? Most financial companies should be regulated by the FCA, and you should also look out for the NACFB logo (National Associations of Commercial Finance Brokers). Brokers registered with the NACFB have to follow a Code of Practice, so usually offer the best service.
Many brokers have a specialist in a certain sector, whether it’s sourcing agricultural finance or experience in investment property. If you work in a particular niche, then it could be worth searching for a broker who understands your industry. However, many brokers are comfortable working within a number of different sectors but you should tell them about your business before making a decision.
Ask for references
Before you buy any goods or services these days, it’s a good idea to gauge the happiness of past clients. Look out for testimonials and real reviews of the broker on third party sites or social media pages. If you can’t find any of these in the public domain, you could always ask for references from the loan broker themselves. It could also help to seek out references from a similar business, so you have proof of a success story within your sector.
Picking a loan broker is a big decision, so don’t just select the first one you come across.