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Why do I need to use a Commercial Finance Broker?


A great question to ask as you really do need to understand the benefits of using a Commercial Finance Broker when applying for any form of funding. 


Often business owners will default to speaking to their existing bank when it comes to funding needs and historically it’s been a good place to start. After all, you’d think that your existing bank should always be more supportive than a funder that you don’t currently deal with and be able to support you and your business.


In reality, there are so many reasons to borrow for businesses that the big 5 banks do not always have the variety of products or the appetite to support businesses across all industry and product areas.


Since the double dip recession in 2008, there has been an explosion of new and innovative funders launch and take up the gaps where the more traditional banks are either unable or unwilling to support.


A recent survey of UK SME businesses concluded the following as the most important considerations seeking funding support: –

  • 1st – Speed of response and availability of funds
  • 2nd – Flexibility of facility 
  • 3rd – Rates & Fees 
  • 4th – Security Required 
  • 5th – Term of Loan/Facility 
  • 6th – Ongoing service from the lender 

Whilst competitive price and fees remain important, speed of response and availability of funds are the key factors for most businesses. 


So how exactly can a Commercial Broker help and what should you expect them to do for you?


  • Wherever possible, your broker will want to meet with you to discuss your requirements, answer your initial queries and explain how the lending process will look for your request. 
  • They will request all relevant information that is required to present your funding application in the correct format to prospective lenders.
  • With so many funders to choose from, they will use their market experience to present your case to several relevant funders for consideration.
  • They will always negotiate hard with funders to ensure offers received are as competitive and suitable as possible.
  • A broker will then work closely with both you and the funder throughout both the application and legal processes to ensure that you are always fully supported, right through to drawdown of funds/loan completion.
  • Once the loan is completed your broker will ensure that any remaining questions are answered and agree an ongoing contact schedule, to ensure any future funding needs are attended to promptly. 



The Benefits to your business 


  • A broker is an expert in dealing with business funding and completes many deals annually 
  • Dealing with a broker will leave you to focus on running your business rather than dealing with funders.
  • Brokers will come up with innovative new ideas to help your business and will keep pace with the constantly changing world of business finance.
  • By dealing with a broker, you will gain access to their network of professional connections, ensuring that you are fully supported at all times if needed.



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