Commercial finance brokers act as a financial matchmaker for firms. Experts in financial products, they work on behalf of businesses, not lenders, to locate funding solutions tailored to specific circumstances and needs.
With an in-depth understanding of the finance market, brokers often have knowledge of available grants, loans and niche finance products that many small-to-medium-sized enterprises (SMEs) don’t know exist.
Put simply, the role of a finance broker is to simplify the funding process for firms, saving them time and connecting them quickly with the most suitable products to meet their aims. Read on to learn more about this valuable business service.
Finance experts in your company’s corner
Finance brokers serve as intermediaries, with their key job being to connect businesses with appropriate financial products and lenders. Brokers carry out a financial needs assessment to work out a company’s financial circumstances and needs to determine their eligibility. They then cross reference this information with available products using their market expertise and access to a wider network of lenders. A single bank only offers its own products, but a broker has relationships with a range of lenders, allowing businesses to access specialised finance from traditional banks, as well as alternative finance providers and niche specialists.
Brokers negotiate terms, leveraging their lender network to secure better rates, fees and repayment conditions for firms they work for. A broker works solely for the firm to find the best option. Charged with advocacy, they can also structure deals that protect a business’s long-term interests and offer advice on market trends to track down more cost-effective financing solutions.
Saving time and effort
Loan applications can sometimes involve complex paperwork, but brokers can help complete necessary documentation with information provided by their clients and ensure they are compliant with requirements. This can mitigate potential errors and greatly improve the success rate of loan applications.
Brokers save companies time and effort, speeding up access to funding. They carry out considerable legwork for their clients searching for solutions and comparing available options.
If you’re looking for a dependable broker to work on behalf of your business to find an ideal finance solution, contact our team today at AJL Finance.
