Do You Understand the True Value of Using a Commercial Finance Broker?
Your small or medium-sized business has financing needs – and the first place that comes to mind is probably your bank. It makes sense to go to your bank first, traditionally, the bank is the place that will offer you the best financing terms. However, you may not meet the lending criteria your bank has set, your application could be denied – leaving you wondering where you went wrong and where to go next.
You can avoid financing hiccups with the aid of a Commercial Finance Broker. Similar to buying or selling a house and using a mortgage broker, using an intermediary to secure the funding you need will greatly increase your success rate. Buying or selling a business can be best facilitated with the help of a business broker because he or she will be able to connect you with a variety of lenders and will have the expertise of knowing which lenders to approach.
A Commercial Finance Broker is a professional in the know.
Your broker will understand the market and be able to assist if you have a complex or unique financial situation that a traditional lender might not understand or be willing to work with. Understanding your specific business needs is paramount to finding financing options that fit your industry and no professional is in a better position to do this than a Commercial Finance Broker.
A Commercial Finance Broker understands your lending options best.
The skills and relationships developed by your broker over time – will help you get the capital your business desperately needs today. Brokers spend a lot of their time cultivating relationships with lenders, as a result they get to know and understand what is needed for a successful application. Requirements for due diligence, approval, how risk adverse a lender is and what the timeline for funding will be, will all work in your favour and are part of what your broker can bring to the negotiating table.
Benefit from Extensive Knowledge and Expertise.
Would you trust your automobile repair work in the hands of an insurance agent? Would you have your roof replaced by a tax accountant? The answer is absolutely not – the right professional should be hired for the right job. When it comes to your business financing needs, you want a professional who understands your industry and who can navigate the credit-granting system with ease. Financial contracts and application processes can be challenging if you’ve never encountered them before. Your broker will be familiar with the terms, acronyms used, and the general process your business will be subject to when you apply for financing.
Get a Customized Solution.
A customized solution is key to your success. Your business is not the same as anyone else’s and your lending needs are unique too. Your Commercial Finance Broker will develop a custom solution for you. Your business needs will dictate the type of financing you’ll require. The benefit of a customized solution and support that is tailored to your needs – you’ll get the best rate and terms for your business. Your broker will help you compare rates and terms, making it easy to decide how to proceed.
Get Funding Without Assets.
Your bank may rely heavily on what is referred to as “traditional” or “hard” assets. Real estate and equipment are typically used to secure a loan for business purposes with an aim to increasing the risk for you – by reducing the risk for your bank. If you don’t have assets to “secure” to your loan, you’ll need a plan B.
A Commercial Finance Broker can work with your business model, even if it involves shipping goods overseas, or is generally an “asset-light” operation. Unique circumstances that your broker will consider include royalty financing, patent financing, trademarks, copyrights, intellectual property, and executory contracts. Lenders are also adapting, offering more cash flow solutions to asset light businesses, including mezzanine financing, equity financing, and even fully unsecured loans. Your broker will know who to approach, and how to successfully approach them.
A Commercial Finance Broker can be your biggest asset, and your most valuable business resource.
You can save a lot of time and money by working with the right expert for your needs. While someone else is working out the details and navigating the lending process for you, you can focus on growing your business and generating revenue. One of the biggest reasons for declined financing applications is inexperience in knowing what is required for a successful application. By hiring an expert to help, you can rely on their experience. Your broker will know which lenders to approach, how to make sure you’ve got the right documentation to make your application, and even how to get around some of the “red tape” that adds time to the application process. Your broker will also work to get you the best terms possible – because they can see your long-term game plan and they want to help you meet your business objectives.
Let Spergel Corporate Finance Help Your Business.
A Commercial Finance Broker will have developed and maintained key relationships with a variety of great lenders. Connecting the right businesses with the right lenders can elevate a broker to a valuable place in the eyes of the lenders they work with. Cultivating respect and appreciation for developing the best solutions for everyone means that many lenders rely on their broker network to provide valuable business leads. As a third party in the ongoing deal, your broker will be the impartial and objective party in negotiations, resulting in what is fair and appropriate for everyone concerned.
If you think that the assistance of a Commercial Finance Broker sounds like the right choice for your small or mid-sized enterprise, please contact Spergel Corporate Finance today. We would be happy to review your business needs and assist you in securing the financing that you need.