Why do you need a finance broker?
If you use a finance broker, there are several advantages.
Image Credit
Why a broker?
There are various reasons why you should use a broker. One of the biggest is that the broker will conduct all the leg work in choosing the right deal.
A top finance broker will have efficient systems to guarantee the smooth running of paperwork, lender assessments, and clear channels of communication between every party.
Online systems let clients apply for finance outside office hours. Security is important, so data should be encrypted and passwords protected.
Features of the best lenders
Brokers have links with lenders, so they have knowledge of the sorts of requests each lender will accept. This allows the broker to quickly choose the most appropriate lender(s) for a finance or loan request. In general, the more contacts a broker has, the more suitable the solution will be. A broker with only a small range of lenders is restricted to the terms of those lenders – which may not suit the client.
A good broker will take into consideration funding amounts, purpose of facility, company status, loan/facility terms and funding amount. They will supply a variety of options, letting you make an informed decision.
Finance brokers must be regulated by the Financial Conduct Authority (FCA) and have adequate expertise to supply beneficial information. For example, if making a loan application a broker may provide information on consolidating the client’s credit agreements, thereby streamlining payments and reducing costs.
If you are seeking new business loans Northern Ireland offers firms including assetfinanceni.com.
More information on a finance broker’s role is here: http://financialrights.org.au/wp-content/uploads/2017/02/FRLC-Factsheet-Finance-Mortgage-Broker.pdf.
Assessing client requirements
Finance brokers will ask for a thorough overview of an organisation’s status including:
– length of time trading
– current financial assets, liabilities and revenue
– company bank statements
– credit agreements (if any)
– information about company directors
Using this detail, a broker can decide on potential lending amounts, when to apply and which lenders to approach.
Finally when selecting a broker, consider:
– What is their level of experience and skill?
– Do they have a specialism in your sort of finance?
– How diverse is their panel of lenders?
– Are they tied to certain lenders?