A Commercial Finance Broker is a professional who specializes in assisting businesses in securing funding and financial solutions. Their primary role is to connect business clients with appropriate sources of commercial finance based on their specific needs and requirements. Here are some key responsibilities and activities of a Commercial Finance Broker:
Advantages of using a Commercial Finance Broker
- Financial Assessment: A Commercial Finance Broker assesses the financial situation and funding requirements of a business. They review the company’s financial statements, cash flow, creditworthiness, and growth plans to understand its funding needs.
- Access to Lenders: Commercial Finance Brokers have extensive networks and relationships with various lenders. These include banks, credit unions, private lenders, and alternative finance providers. They leverage these connections to find suitable financing options for their clients.
- Financial Product Knowledge: Brokers have in-depth knowledge of various financial products available in the market. These can be business loans, lines of credit, asset finance, invoice financing, commercial mortgages, and trade finance. They help businesses understand the features, benefits, and costs associated with each option.
- Customized Solutions: Based on the client’s financial assessment, a Commercial Finance Broker identifies and recommends the most suitable financing solutions. They consider factors such as interest rates, repayment terms, collateral requirements, and the business’s industry. Brokers use this information to tailor the financing package to the client’s needs.
- Application and Documentation: The broker assists the client in preparing and submitting loan applications and other required documentation. They ensure that the application is complete, accurate, and presents the client’s financial situation favorably to lenders.
- Negotiation: Commercial Finance Brokers act as intermediaries between businesses and lenders, negotiating terms, interest rates, and loan conditions on behalf of their clients. They aim to secure the most favorable financing terms and conditions for the business.
- Compliance and Regulations: Brokers stay updated with financial regulations and compliance requirements. They ensure that the financing options they recommend align with legal and regulatory guidelines.
- Ongoing Support: Even after the financing is secured, a Commercial Finance Broker may provide ongoing support to their clients. They can help with refinancing, restructuring debt, or sourcing additional funding as the business’s needs evolve.
Why Use A Finance Broker?
Whether you’re looking for a business or personal loan, there are going to be lots of options out there. With many different repayments terms, it can be hard to know who is offering you the best option.
We all have different needs from our finance options, so it stands to reason you’re going to want to choose the option that suits your circumstances best.
Finance brokers are experts in their field, which means that they’re in an excellent position to give you advice on the options available to you and what would suit you best.
When it comes to looking for business finance, there are many different lenders out there which means that the business finance space is a little crowded.
As someone who is looking to raise finance, it can be easy to assume that this is a good thing because you have more choice. Whilst more choices is often a good thing, it also makes choosing the right option for you a little more confusing.
Choosing The Right Broker
You may find that different brokers have specialised areas of lending, so do a little research and find one that suits what you’re looking for. Check that they’re able to help and are up to date with special products.
There are two types of Commercial Finance brokers 1) regulated and 2) unregulated.
The difference is that the unregulated brokers can only provide advice to Limited companies, whereas regulated brokers can assist both personal and business. As regulated brokers have access to personal lenders they may have an increased number of lenders on their panel.
Regulated brokers are monitored by the Financial Conduct Authority (FCA) . This means you can feel assured that they will act in a certain way. There is a FCA register which is available to the public to check the status of a broker. Alternatively you could even ask for the FCA registration number from your broker to check in advance.
Once you are happy with your chosen broker the best thing you can do is talk to them about your needs and what they can offer.
As brokers are experienced in the world of business finance they’re in an excellent position to talk you through what they’re able to offer and how that could suit you.
Of course, any business finance decision is ultimately yours so don’t feel pressured, but getting a point in the right direction and some help at every stage along the way is definitely a good thing.
Speak to the experts.
Finally as a Finance Broker in Manchester we don’t just cover the local area. In fact we have nationwide coverage and work with over 300 different lenders across all lending types.
UK Businesses only
Please click below or call 0161 8211478 to speak with one of our specialists.
As members of the Financial Intermediary and Broker Association you can be assured of a great service.
Some of our specialist areas of Finance are:
Asset Based Lending • Asset Finance • Business Loans • Cashflow Finance • Factoring • Invoice Discounting • Single Invoice Finance • Trade Finance • Stock Finance • Credit Insurance