5 Benefits of Using a Commercial Finance Broker
More UK businesses are benefitting from using a broker and some lenders are moving to only working with brokers. A recent survey of UK SME owners has found that half of small businesses have already, or are planning, to secure new finance during the remainder of the year.
With more businesses looking to grow their business, saying yes to investment opportunities or wanting to ease cashflow pressures, using a broker has never been so beneficial.
Lender Criteria Knowledge
According to a Money Age in 2021 article, there are around 900 non-regulated and regulated lenders in the UK. With so many lenders available, businesses are choosing to use brokers to take advantage of their knowledge and to save time on looking around.
A broker like ourselves will have access to a panel of lenders, some with exclusivity to brokers only. We have knowledge of lender’s eligibility and credit criteria and after learning more about a business and their funding requirements, we will know which lenders to approach and the supporting documents that are needed for an application.
As well as arranging a finance facility, brokers can support clients in gathering the right documents for submission and help format them in the lender’s preferred layout. Consequently, lenders can process the application quicker and can make the application stronger because of the more evidence and supporting information about the business.
Breakdown technical questions
If any lenders have any questions, some that may be quite technical or using industry jargon, brokers can explain the question in simpler terms. With an understanding of what information, the lender is looking for, a broker can re-phrase or ask follow up questions to retrieve the information that lenders need and minimise going back and forth between the client and lender.
Commercial finance brokers know the market and will want to get the best rates and finance product for their clients – approaching multiple and/or specialist lender.
Additionally, a client may have a specific finance facility in mind, but it may not be the best suited or another option could be available with lower rates or a longer term. An experienced broker will present both options for the client to choose from, so they know everything that’s available.
Negotiate with lenders
On behalf of the client, brokers will communicate, negotiate, chase and question anything from the lender and if they spot something that doesn’t seem right, they will query this with the lender before going back to the client.
Speak with our Commercial Finance Specialists today
Whether you’re looking for a new finance facility, would like a review of a facility that you currently have or looking to consolidate business debt with the use of a finance solution, don’t hesitate to get in touch with our team for a no-obligation discussion. Call us on 01270 443510 or complete our enquiry form & we’ll be in touch as soon as possible.