There was a time when everyone knew their local bank manager and many small business owners could simply schedule an appointment to discuss the finance options available to them. Things today however are radically different.
1. Brokers offer expert financial guidance
The finance a business thinks they need may not be the finance they actually need. This is an area where a broker can help.
A business may think that they need a loan to buy a piece of specialist equipment, but a broker could recommend a leasing arrangement as a more suitable and cost-effective solution. Perhaps instead of a traditional overdraft, the flexibility of a factoring arrangement will give a business the cash injection it needs.
2. Brokers save clients time and money
Modern business owners have become much savvier; often outsourcing their financing to a specialist broker – which in turn allows them more time to manage the day-to-day running of the business.
Shopping around for the best deal has become increasingly common and one of the main advantages of using a broker is that they can do that shopping on their client’s behalf.
3. Brokers come with experience
Business owners are experts in their business and sector but obtaining finance can be quite a complicated matter. There is no shame in admitting that it can be confusing to understand the difference between all the different options, interest rates and repayment choices on the market.
That’s where a broker can help – they have the experience to help advise and disambiguate all different options available.
4. Brokers maintain a traditional approach
Dealing with a broker means dealing with an individual. A broker is someone who will take the time to understand a client, their business and their sector.
Brokers offer a personal one-to-one service tailored to an individual business’s needs. If a broker understands the business and their requirements, they are in an excellent position to secure the best and most suitable deal.
5. A broker is on the client’s side
When a business approaches a lender for finance directly, the lender will look to offer that business their product. If that business instructs a broker to help them obtain finance, then the broker is working for that business.
The importance of having someone the business can trust, who is on their side, and has a broader market view cannot be understated.
6. Our brokers are backed by an independent trade body
Brokers who are Members of the National Association of Commercial Finance Brokers (NACFB) all adhere to an industry recognised Code of Practice, so if a business uses a broker with the NACFB logo, businesses will know they’ll be getting a good service. If your business could benefit from more information about the brokers that form the NACFB, you can take a look at findsmefinance.