Three reasons to consider using a finance broker for your next business loan
Whatever your business needs, a finance broker can help you get approval for the most appropriate and cost-effective solution.
Small business owners who need money to expand, invest in new equipment or smooth out their cash flow often head straight for the bank. However, just as a mortgage broker can draw on a wide range of options to help you find the right home loan, so a finance broker can help you source the most suitable loan for your business needs.
In this article, we share three reasons why you might want to consider talking to a finance broker next time you need a business loan.
1. Access to a wide range of products
A banker is usually limited to the products and services offered by their own bank whereas a good finance broker has more options to consider. Finance brokers, for example, have access to several different banks and specialised lenders for loans, and the variety of products and solutions they offer include:
fixed or variable term funding for commercial property
business loans
commercial bills
cash flow funding for specialist industries such as pharmacies and accounting practices
inventory and debtor funding
funding solutions for working capital finance
franchise funding
construction and development finance
equipment finance
There are lenders that specialise in loans for everything from shop fitouts and light commercial vehicles to advertising screens.
Good finance brokers will consider all the options available to them before coming up with a tailored solution.
2. An ongoing service
With more than 2 million small businesses in Australia, there’s high demand for personalised loan advice. Finance brokers can help small businesses bridge that gap by providing the high level of support and service small business owners need.
We work closely with their clients to develop an overview of a business including its history, current challenges and plans for the future.
As businesses are constantly changing, a finance broker can help you anticipate peaks and troughs and suggest finance solutions that could help you create more stability. A good finance broker will usually check in once or twice a year to ensure your finance solutions are still in line with your requirements.
When you include a finance broker in your team of trusted advisers they can help you stay on the front foot and you’ll be better placed to plan out your future rather than react to change as it happens.
3. Taking care of the application process
At a meeting hosted by the Reserve Bank of Australia in September 2018, the message from the Small Business Finance Advisory Panel was that many small businesses can find it challenging to access finance.
In this environment, the application process is particularly important and finding the right information can be very time-consuming but, if you rush through it, you’re reducing your chance of having the loan approved.
A finance broker can take care of the whole procedure, ensuring that the information is complete and correct and we can also highlight positive aspects of the business by providing background information you might not think to include.
Finance brokers work with lenders every day so they know what they’re looking for, and they can also negotiate on the client’s behalf.
With access to many of the leading business lenders, APLS Finance Solutions can help you with all your business finance needs. If you're looking for a short-term loan to expand your business, an overdraft to help manage cashflow or are in need of finance to purchase a commercial property.
Contact us today to learn more about how we can help you with all your business and commercial financing needs and ensure your business gets the right level of financial support.
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