Why should you engage with an SME loan broker?
What services can SME loan brokers provide and how can they help you? What should you look out for when engaging with a business loan broker?
Small business loan brokers have access to all the available loans out there for your small business. They can compare rates, benefits and packages to get you the best one. It saves your time researching and talking to every single lender.
However, some brokers are affiliated with certain banks and financial lenders. They may be more "bias" and push those loans to you, so take note.
Brokers will also help you out to prepare your loan application and liaise with the financial lenders and banks you're interested in. Even if you don't end up using one, it's good to have a chat with a few.
The benefit of using a small business loan broker is the ability to leverage their experience and network. They will have access to all the information relevant to your small business loan requirements, and quickly.
They can listen to your needs, and then relatively quickly identify appropriate products and packages that meet your requirements. They act as the central point of information when you want to compare a range of options.
They can also do the heavy lifting when it comes to applying for your loan/s.
Having said this, it’s important to be aware that a broker may get a kickback from the financial institution they recommend. This needn’t be a problem, as long as you recognise when this is the case and understand the implications. It usually means you don’t pay a fee - the broker is paid by the institution by way of a commission.
There are definite advantages of using a broker. Just be aware of the downsides and the underlying ‘price’ you pay.