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:
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
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 Pierlot
