Find Top Business Loan Brokers Near You

Business Loan Brokers

At a certain stage, almost every business will require additional capital, whether it’s to purchase equipment and assets, pay wages or invoices, increase their working capital or grow their business. 

This is where business loan brokers come in. 

What is a business loan broker?

A business loan broker is an expert who works to find the best business loan for your business funding needs. They can find the lowest interest rate for your business loan and determine the best loan type for you, whether it is a short-term, secured loan, unsecured small business loan or line of credit. 

Business loan brokers can also help you negotiate a better loan interest rate and prepare your business loan application. 

How much does a business loan broker charge? 

Business loan brokers usually earn their commission from lenders, and this can be anywhere between 1% to 3% of the total loan amount (note that this range is an indication only and may be higher depending on the loan). 

Before you engage in a broker’s services, ensure that you’re aware of all the costs involved. 

What should I look for in a business loan broker?

There are a few ways you can compare business loan brokers to ensure you are working with the right broker. Some things to look for include:

• Reviews and ratings
  Compare brokers and find one with a high approval rating. You may also want to ask for some references they’ve received from previous clients to ensure they have a strong track record. 
• Qualifications
  Check that loan brokers are accredited and possess the appropriate industry-standard qualifications.
• Lending panel
  Many brokers will have a standard lending panel which they will introduce you to. Get a sense of the type of lenders on this panel to see whether they are appropriate for your needs. Ensure your broker states any affiliations they may have with a lender. 
• Fees
  Check that your broker is not charging additional fees. A good business loan broker should be transparent about their commission and fees.
• Industry specialisation
  Some brokers may specialise in loans in a specific industry and introduce you to a tailored selection of loans common for your type of business or industry. 
• Network
  If a broker has a wide network of professionals and resources they can link you to, this is a good indication of their knowledge and industry experience. 
• Service
  Choose a loan broker who is flexible and provides both reliable and timely responses after doing their due diligence. 

What are some common pitfalls to avoid when choosing a loan broker? 

When choosing a business loan broker, ensure that you are not falling into any common traps and be wary of brokers who exhibit any of these red flags. 

❌  Brokers who charge you additional fees
If a broker is being paid a commission by the lender supplying your loan, they should not be double-dipping and charging you additional costs on top of what they’re already earning. 

❌  Brokers who are hard to reach
Be wary of brokers who are difficult to contact via phone or email. 

❌  Brokers with no experience or references
Do some background research on your broker. It’s usually quite easy to find some information about their industry experience online. Additionally, you can ask a broker for testimonials from previous clients. 

❌ Brokers who disregard credit history
Avoid a broker who disregards credit scores completely and offers you promises of loans that sound too good to be true. You may end up with a loan where you are required to pay higher interest rates than necessary or one that is not appropriate for your business. 

What is the criteria for small business loan approval? 

Some of the common factors lenders take into account when deciding whether or not to approve a small business loan include:

• Credit rating 
• Cash flow and income
• Collateral
• Debt load
• Industry 
• Length of time in business

A broker can help you pull all of this information together and negotiate with the lenders on your behalf to try and secure you the best deal.

Why use an online business loan broker service? 

For most business owners, time is a scarce resource and contacting brokers physically can be a time-consuming process. 

Online business broker services are websites that bring a range of lenders together on one platform where you can easily compare them against your needs and contact the appropriate brokers for more information. 

SavvySME offers this service for free. Simply follow the three steps above to begin comparing lenders. 

You can also compare the latest range of offers for business loan products and packages which have been curated with small businesses in mind.