Why are businesses opting to use Finance Brokers rather than going directly to Banks?
On the day, we explained to local business owners why more and more businesses are choosing to use finance brokers to arrange their business finance rather than going down the ‘traditional route’ of directly going to a bank.
Why are Businesses using Commercial Finance Brokers?
Our Director Matt explained how there’s been an increase in businesses approaching brokers for their finance requirements as opposed to going directly to a high street bank.
Previously, a business would approach a bank and generally, it will be a yes or no answer to whether they would receive funding for their requirements. Then, they will need to approach another bank, explain their business and funding requirements again and wait for an answer.
There is a large panel of lenders available now with many specialising in specific sectors, industries and funding types. Some may only exclusively work with brokers. The same high street banks are still available however, there are more options than just the well known banks.
With all that in mind, businesses are choosing to use a commercial finance broker as they will approach lenders on your behalf to find you the most competitive rate and term. In addition, with lender’s criteria knowledge and working relationships, they will know who to approach, negotiate and work on the terms on your behalf.
Brokers often can arrange more than one type of finance facility
For example, a business may be looking for a Commercial Mortgage to purchase a new business venture with premises or premises to add to their existing locations. Further down the line, a business may wish to purchase a new commercial vehicle (asset finance), need an injection of working capital to support cash finance (business loan) or receive a VAT bill (VAT Funding). A broker who offers a suite of commercial finance solutions will be able to arrange funding to meet your requirements whilst they already have background knowledge of your business.
How to protect your business?
Protecting your business is critical however, it’s often something that is overlooked by business owners.
When it comes to protecting your business, it will come down to how the business is set up and what you’re looking to protect: Debt, Control, Profits & loved ones of you and your employees.
To learn more about Business Protection, don’t hesitate to get in touch with our sister company Amplo Insurance who will be able to assist with Business Loan Protection, Key Person Insurance, Business Income Protection and much more!