A business loan broker performs the same function a mortgage broker does for homebuyers: they help prospective borrowers find the best business loan deal suited to them. They can do this by drawing from a range of established partnerships with lenders, relationships which place them in a position to better understand the requirements of each of their lenders and match them to your business’ individual situation more accurately.
They also help you navigate the application process, acting as a middle person between you and your lender. The application process for business loans in Australia, particularly for larger amounts, can often be a long and arduous one. With the potential for several back-and-forths with your lender, business finance brokers are there to minimise the correspondence between the two parties and ensure your overall application meets the mark.
What are the benefits of going with a business loan broker in Australia?
There are several key benefits to pursuing a business loan in Australia through a commercial finance broker. Some of the most notable of these are:
Having the hard work done for you
One of the most appealing traits a finance broker can offer a business is the amount of work they do behind the scenes. They compare the offers themselves and speak to the lenders on their panel directly to find a loan that suits your wants and needs. They’ll consider your preferences, such as if you’re looking for a loan with free additional repayments or one with a particularly low interest rate. It can sometimes be complicated to do your own research and consume time you simply don’t have while running your business, so having an expert do it for you can be a major boost and save you much-needed time.
Accessing great deals unavailable to direct applicants
Perhaps the factor which wins the most business owners over is their commercial loan broker’s ability to negotiate a better deal with a lender than they could on their own. With an established relationship, they’re best placed to negotiate on interest rates, features and other loan conditions in line with the deal you’re looking for. Brokers with wider panels of lenders are generally the best when it comes to finding especially low rates and comparing, as they have a larger sample size to choose from. With them in your corner, you could save more on interest and fees overall.
Ensuring your application meets lender requirements
Crucially, though, your broker will know your lender’s eligibility requirements inside and out. They’ll understand what’s required and the particular documents you’ll need to submit to qualify for your loan. Most importantly, they can conduct their own borrowing power check and let you know whether the amount you’re looking for is more or less than what your lender can provide. There are many business finance brokers who can accommodate businesses who’ve struggled with their credit scores and are able to get a deal with a specialist lender who works with borrowers in this position.
Are there any alternatives for finding my business loan?
Yes – the clearest and most obvious alternative for businesses looking to take out a loan is to compare them yourself. There are clear benefits of doing this, such as not limiting yourself to a broker's panel of partnered lenders and maintaining full control of the process. However, you'll have to weigh these against the benefits listed above to determine which is best for you.
