If you’re an SME looking to find funding solutions to drive your business towards its full potential, you may be considering using the services of a commercial finance broker. Whilst traditional banks can offer loans to the likes of small businesses, it can often be difficult to secure a loan this way, especially if you’re unsure if you’re getting the best deal.
With so many lenders out there to choose from, the choice can often feel overwhelming. This is where commercial finance brokers, such as Ping Finance, come in. Let’s take a look at what exactly it is that commercial finance brokers do, and why they could be a viable option to finding the right funding for your business.
What Does a Commercial Finance Broker Do?
The role of a commercial finance broker is to help you find the best financial solution for your needs. Brokers act as a middleman between the lender and yourself, working with their extensive list of contacts to try and find the most suitable loan, at the best rates, to suit your business and business requirements.
Brokers want to make the process of applying for financing options as simple as possible for the likes of SMEs, ensuring that there are plenty of options to choose from. Whether it’s for additional cash flow, a short-term business loan or property loans, brokers will work with you to seek out the most appropriate lender for your business.
Advantages of Using a Commercial Finance Broker
Enlisting in the services of a commercial finance broker comes with many benefits for the likes of SMEs. Here are some of the key advantages to using a commercial finance broker:
Save time – If you do a quick search online, it will become clear very quickly that there are many different banks and lenders out there. It can be incredibly time consuming to sort through them all to create a shortlist of the best options and then to contact them all, especially if you don’t have any prior knowledge of companies or types of loans. By outsourcing this work to a broker, you will have more time to focus on your business operations whilst they work away in the background to find the right funding solution to meet your needs.
Expertise – As well as seeking out the perfect funding solution, a broker can also offer their insight and expertise for you and your business. Brokers are financial experts, and they will use their expertise to talk you through the funding solutions they have selected for you and help guide you through the entire process of applying for and securing funding. Your broker will steer you in the right direction, so you won’t have to rely on sourcing out information online and risk making a mistake with your funding choices.
Support – A good broker won’t suddenly disappear once you’ve secured your funding. They will continue to support you and your business through any initial problems to ensure that your funding solution works out in the long term.
Terminology – Brokers are aware that they will often be dealing with clients who perhaps don’t have an especially extensive knowledge of complicated financial terminology. Different lenders may also vary the terminology they use, which can complicate things further. With a broker at your side, they can explain and answer any of your questions about each lender and their terms and conditions. They will be able to assist you throughout the entire process to ensure you have a complete grasp of your chosen funding solution.
Price – Brokers often develop a good relationship and strong connections with many different lenders. As a result, a broker should be able to negotiate a better deal on your loan on your behalf; they won’t simply propose a one-size-fits-all solution for their client’s unique situation.
Increased cash flow – Possibly the most relevant advantage of all, is that by enlisting in the services of a commercial finance broker, you will better be able to secure the funding your business needs. Whether it’s to purchase new equipment, hire more staff or simply bridge a cash flow gap, a broker can help you access the funds you need to help your business to succeed.
Considerations with Commercial Finance Brokers
Before you enlist in the services of a commercial finance broker, there are a few things you should take into consideration. Some brokers will have strong ties to particular lenders, and this may restrict or influence what products they introduce you to. Ensure that you go for an independent broker that will objectively assess the finance market and seek out the solution that is best for you and your business.
Brokers will charge different amounts to cover the cost of their services. Some will take one-off fees from a client whereas others will take a commission from the funder, and some may even offer the client the choice. You should assess how much it will cost and whether the cost is worth the services you’re looking for. However, given that you are seeking out funding for your business ventures, it will probably be worth seeking out a broker to find the right funding for your needs.
At Ping Finance, we have a diverse spectrum of lenders, so we can give you a wide range of finance options for your business. Our commitment to our customers means that we do not charge any fees for our services, and you will never be under any obligation to accept the loans we present to you.
We work with lenders who specialise in bridging finance, commercial mortgages, development finance, short-term business loans, trade finance and invoice finance. So, whatever financial solutions you’re looking for, we will have contacts with a lender that is perfect for you and your business.
The application process couldn’t be simpler. Start by telling us a little bit about you and your business and what you’re looking to borrow. We will securely and confidentially use this information to seek out lenders who can provide your business with the capital needed to help your business succeed. If you’re looking for a commercial finance broker in Manchester or a commercial finance broker in Bolton, fill out our online application form today to get started.