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What is a Commercial Loan Broker
What is a Commercial Loan Broker

Are you a business owner needing finance but are unsure about using a Commercial Loan Broker?

Do you need finance for your business and are uncertain of the best way to go about it, or importantly, how to ensure any finance offer is correctly structured and market competitive?

This is where a Commercial Loan Broker can help!

Why you need a Commercial Loan Broker

When you approach a Bank or Lender direct, they can only offer you their range of products and approve borrowings in line with their policies and willingness to lend.

Unless you spend time, undertaking research and submit your application to multiple Lenders, you have no real way of ensuring any finance package is truly market competitive.

However, when you use a Commercial Loan Broker:

  • You open the door to far greater choice
  • Save tim
  • And avoid a lot of uncertainty and frustration

Greater Choice - The Commercial Loan Broker Advantage

At The 500 Group we have access to more than 40 Lenders including the major Banks and Speciality Lenders.

One advantage of greater choice is the element of competition it introduces. Competition invariably delivers better structures, pricing, terms and conditions.

Another key advantage of using a Commercial Loan Broker, is access to the differing policies of Lenders & their willingness to lend.

Simply, greater choice provides more options.

The Commercial Loan Broker Process

However, at The 500 Group our Commercial Loan Brokers provide a complete, end to end solution:

  • We meet with you to understand both your business and personal needs. We also outline the finance application process
  • At this point, you can decide whether to authorise The 500 Group to seek finance on your behalf
  • We then will provide you, and your accountant, with details of the information required to support the finance application
  • When all the information is received, it is analysed, and we prepare a Bankability Assessment
  • We then undertake research and seek initial indications of interest from Lenders
  • We provide our initial feedback around likely structures, terms and pricing. Also critically, we tell you of any changes needed to enhance the prospects of approval, or to achieve better pricing, terms and conditions, etc
  • A formal Finance Application is then submitted to the preferred Lender(s) identified through the research process
  • Letter of Offer is presented for consideration with any additional fine-tuning / negotiation completed
  • Letter of Offer is accepted and we assist you manage the process to settlement and drawdown.

How are Commercial Finance Brokers Paid?

Commercial Loan Brokers are paid by the Lender with whom the finance is placed.

The Lenders are prepared to do this, as the involvement of the Commercial Loan Broker helps them avoid the significant sunk cost and long lead times associated with their teams prospecting for clients.

Occasionally, at The 500 Group, if a deal is particularly complex, we may charge a modest fee for the Bankability Assessment.

(We will advise whether a fee will be payable following our initial meeting and after receipt of all the required information)

Does Using a Commercial Loan Broker Mean I Need to Change Banks?

At The 500 Group we understand changing Banks can be highly disruptive – so where possible, we prefer to try and preserve a clients existing Bank relationships.

However, this is not always possible for many reasons. For example, the existing Bank policies may not provide the flexibility a client is seeking, terms and conditions may be too onerous, or pricing is simply not market competitive.

In the event a change is required our Commercial Loan Broker will provide guidance, and work with the chosen Banker, to try and ensure the transition is as least disruptive as possible.

Summary

Using an experienced Commercial Loan Broker can provide many advantages for business owners compared to approach Lenders direct.

By using a Commercial Loan Broker, you gain market access that invariably delivers, better pricing, terms and conditions.

If you would like to learn more about how The 500 Group may be able to assist, or our Bankability Assessment, don’t hesitate to get in touch.

Greg Pierlort - Commercial Finance

Greg Pierlot 

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