When it comes to exploring all of the financing options for your business, it can feel very overwhelming. Trying to find the right lender for your needs, or the best deal for your business, can be a time-consuming endeavour. This is especially true for small businesses, where there is often already a very limited amount of time and resources.
Business loan brokers offer invaluable support to businesses of all shapes and sizes in terms of helping to find and secure the right financing from the right lender with the right rates for your business. Not only do they help save you time and money, but they also give you peace of mind. Their unbiased advice and full market access means that you have the very best finance solutions for your requirements.
In this blog, we’ll explain the role of a business loan broker and some of the biggest benefits of working with a commercial broker rather than directly with a lender. We’ll also give you some questions to ask potential brokers while you’re evaluating the right fit for your business.
What is a Business Loan Broker?
In short, business loan brokers act as an intermediary between businesses and lenders in order to help you find the right financing for your business needs and circumstances. There are countless commercial lenders and types of financing available, depending on what your specific requirements are, and evaluating all of these options internally or on your own can take days or even weeks. Commercial loan brokers are effectively a middleman: helping you to assess the options available so that you can get on with running your business.
Finance brokers have direct relationships with lenders, which often gives them access to the best deals and rates. Often, businesses won’t have this kind of relationship with a lender themselves, which can lock them out of certain options. Working with a commercial broker widens the net of opportunities, without creating more work for you in terms of reviewing the market.
They’ll also help you through the application process. Choosing which lender to borrow from is only the first stage of your journey, you’ll also need to give your business the best chance of being approved as you submit your application. Business loan brokers will guide you through the process of applying for funding from start to finish.
Applying on your own, you may find that you’ve spent hours, or even days, evaluating and selecting which lender to apply with, only to have your application rejected because it doesn’t meet certain, very specific criteria. Working with a finance broker reduces the likelihood of this outcome. This also means if you have any questions, you have someone on hand to support you.
The risks of choosing the wrong business finance
Choosing the right funding option for your business is crucial. You might be seeking to alleviate cash flow difficulties, hit growth goals, or expand on your existing operations. Without properly reviewing your options, you may find yourself choosing an agreement that doesn’t suit your needs. For example, you might find that you have higher monthly repayments, less competitive rates, early repayment penalties, or additional, unexpected costs.
Choosing to work with a broker can help to alleviate some of these risks, as they’ll find financing options that best suit your needs using their in-depth knowledge of the financial industry and your business.
What should I consider when choosing a business loan broker?
Choosing the right broker is an important step in your journey to securing your financing, so there are a couple of things to keep in mind. Before you start working with a broker you should consider asking some of these questions to make sure you’re getting set off on the right foot.
“Do you have experience in securing funding for businesses in my industry?”
Some brokers will have a specialist set of industries that they work in. For example, they may be experts in working within hospitality, but don’t have as much experience working with new retailers. Understanding their areas of expertise will be important to finding the right fit.
“How many banks and lenders do you work with?”
The more institutions that the broker will evaluate on your behalf, the more likely you’ll find the perfect match for your needs. You want to ensure your broker has a healthy number of lenders on their panel. At Aurora Capital, we have relationships with over 50 lenders, giving you the peace of mind that we have a good overview of the market.
“What are your fees like?”
On top of the loan you’re taking out, it’s likely that you’ll also have to pay the broker for their services. Some brokers receive this as commission from the lender, but others may charge you directly. Make sure you’ve fully understood how the broker will be paid so you have a complete picture of the total cost of your loan.
What are the benefits of using a business loan broker?
Using a business loan broker has a huge amount of benefits over going it alone. Whether you’re worried about navigating the sheer number of options available on the market, looking to access the best rates a lender has to offer, or you’re just looking for support throughout the application process, commercial brokers can help.
A business loan broker understands your needs
Business loan brokers pride themselves on the relationships they build with not only lenders, but also their customers. They will take an interest in your business and develop a one-to-one relationship with the business owner and stakeholders that usually lasts a long time. In most cases, a broker will stay with you for a long time – on hand to help you as you reach for new goals and expansions. This personal service makes all the difference.
Overcome problems accessing business loans
Commercial brokers live and breathe the finance industry. They have a huge breadth of knowledge which, if you choose to work with one, is at your disposal. This can be particularly useful if you have bad credit or don’t have the collateral to put up against a secured loan, for instance. Your finance broker will be able to help you find the right financing solutions that match your unique circumstances, so you don’t miss out on that all important financing.
Access the most cost-effective and flexible finance solutions
With a wide range of lender relationships and a birds-eye view of the financial landscape, finance brokers are in a much better position to get the most cost-effective and flexible finance solutions for their clients. Leveraging their existing relationships, they can often get access to deals that businesses on their own would not.
Making finance simple for business owners
Business owners are not experts in the world of financing and funding options, nor are they expected to be. In the same way that you hire the best and the brightest into your business to help you reach your growth goals, working with a commercial broker allows you to get access to experts in financing; who’ve found the right funding solution for countless businesses just like yours.
Saving time and money
With so many options on the table, it can be hugely time consuming to evaluate each lender and type of financing in order to find the right fit. On top of this, you wouldn’t want to go through the lengthy research phase, only to find that your application has been rejected because of some specific criteria you missed. Working with a commercial broker takes off the time constraint: they’ll be able to evaluate all of the options on your behalf, approach lenders, and help you perfect your application; saving you untold manhours (and money) in the long run.
What is the advantage of choosing Aurora Capital as your business loan broker?
At Aurora Capital, you can rest assured that our experts can find the best funding options for any size of business within a matter of hours. We’ll also help you to understand the nuances of each funding option so that you’re fully clued up on the rates, repayment terms, and all of the fine print, enabling you to make a well-informed decision. We’ll even guide you through the application process to give you the best chance of approval. From starting research to receiving your funds, Aurora Capital is with you every step of the way; using our specialist knowledge of the industry landscape to help you make the right choice for your business.
If you’re looking to explore finance options for your business and circumstances, get in touch with us today. Whether you’re a small business looking to get off the ground, struggling with bad credit, or an established business looking to reach your growth goals, the team at Aurora Capital is ready to help.
