5 advantages of using a broker for a business loan

small business owner business loan

What is a Commercial Finance Broker?

A commercial finance broker is a company or an individual that act as the intermediary, or middleman, between businesses seeking finance and lenders. A commercial finance broker specialises in helping businesses source funding. A broker can help to source the right type of finance for the business; how much, how long and why the finance is needed. A broker can also find the best deal available on the market and can help where a business has been refused funding already.

Like Cornerstone Commercial Finance, many brokers are independent, which means that they act impartially on your behalf to ensure they find you the most suitable funding solution and are not tied to any particular lender. 

Brokers are most beneficial to those UK businesses who need or want guidance on finding the most appropriate business finance and want to cut through the corporate jargon typically associated with lending. 

So, your business may be looking for finance. Why is working with a finance broker the best option?

5 Reasons to Use a Finance Broker

1/ Personal Approach 

From the initial enquiry to the completion of the deal, a broker will be with you every step of the way. A broker takes the time to understand your business and will work with you to source the best type of finance. 

Our team have years of experience in financial services and are used to navigating the often complex and confusing finance industry. Getting to know you and your business is our priority. 

2/ Saving You Time & Money

Finding a business loan can be a long and tiresome process of communicating information with multiple lenders, each with different criteria, but the same repetitive paperwork. It’s safe to say that ‘customer experience’ is not something many banks pride themselves on. Online comparison platforms, built to give consumers the opportunity to find the best deal, typically offer very little transparency or education in relation to interest rates. Brokers will not only save your business time by doing the searching for you, but they will often be able to secure your business a better interest rate because of their strong relationships directly with the lender. 

3/ Shopping Around 

As a business owner, running your business is always at the forefront of your mind. While finance may be necessary to your business’ survival or growth, it shouldn’t have to jump the queue in terms of priority. This is where a broker’s value becomes evident. Once you have communicated your needs with the broker, your work is done. They will do the rest of the leg work for you and communicate with their panel of lenders, saving you the time and hassle of searching yourself. Brokers are on your side and will work tirelessly to show lenders that your business is worthy of funding. 

4/ ‘Whole of Market’ Coverage 

60% of businesses who search for finance give up after getting turned down by the first lender. This is hindering thousands of businesses accessing finance options that their business may be viable for. Luckily, a broker will assess options from the whole of the market giving your business the best chance of not only finding finance but finding the best deal. 

5/ Transparency

Navigating the business funding market is no easy task with very little standardisation of information and misaligned incentives. Working with a broker will ease this burden as they are on hand to give straightforward answers to your questions, providing transparency and clarity. Finding a business loan can and does have a major impact on financial health and should be treated with the same level of care as any other financial decision. Brokers will offer reassurance and act in the best interest of your business.

Using a Broker vs Going It Alone

Finding finance through a broker may not be for everyone, as many businesses prefer a ‘hands-off’ approach, or generally understand how to manage the process. 

However, having a broker on your side can be a real asset, a recent study from the British Business Bank found that businesses accessing external support when looking for funding are more likely to become high-growth companies. 

If you’re looking for finance for your business, speak to one of our advisers to find out how they can help.