Choosing a commercial finance broker
Finance & Funding
Key learnings
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Commercial finance brokers work with businesses and lenders to find the best finance options available.
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Depending on where your business is at and what you are looking to achieve, commercial finance brokers will work with you to find a bespoke option that is right for you.
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There are some important things you need to consider before choosing a broker to work with.
When it comes to business finance, there are a lot of options available on the market. Depending on the size of your business, its current situation, and the type of finance you are looking for, finding the best deal can be a laborious task, especially when you’re busy trying to run your business. That is why a lot of businesses choose to use commercial finance brokers. Here, we look at what commercial finance brokers do, and what you should consider when working with them.
Click below to find out more...
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What is a commercial finance broker?
Commercial finance brokers take some of the hard work out of finding the best finance deals for businesses. They have extensive expertise and a large network of lenders, meaning they can source the best deals and make it easier for business owners.
Commercial financial advisers can help businesses with things like:
- Secured business loans
- Unsecured business loans
- Short-term business loans
- Start-up loans
- Merchant cash advances
- Commercial property finance
- Invoice finance
- Asset finance
- Advice on the commercial finance sector
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What to consider when looking for a commercial financial broker
There are several important things you should consider when looking for a commercial finance broker to work with. Before you choose one, it’s worth asking:
- Are they regulated by the Financial Conduct Authority (FCA)?
- Are they a member of a trade association like the NACFB?
- Are there going to be any extra broker fees from the start? (If so, find out how and when these fees will become payable)
- What is the expected time from the application to the loan offer?
- What paperwork is involved?
- How will the broker communicate with you?
- Do they only work with certain lenders, or do they compare the entire market? (If they only work with select members, you might not be getting the best deal)
- Do they have a strong Data Protection Policy and are they GDPR compliant?
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Applying for a loan through a commercial lender
Each commercial financial broker will have a slightly different practice. Depending on the size of your business and the loan you are looking to secure, a broker might want to meet with you to discuss the different options available.
It is likely your broker will need supporting business documents from you such as accounts, merchant statements, identification and possibly landlord references. Your broker will let you know what documentation is required.
Next steps...
- Communicate with your chosen broker, let them know exactly what you’re looking for and find out what they need from you.