Many business owners in need of financing are faced with the need to decide whether to go to a bank (or other direct lender) on their own or work with a commercial broker to arrange financing. You should be able to consider a good broker as your partner throughout your financial project. Working with a commercial broker such as forexmejores.com/brokers/fxtm/ can offer you, the business owner, many benefits, resulting in savings in time, effort, and frustration.
Here are some of the benefits that a broker can offer:
- Various products and services. Many commercial brokers that focus only on commercial clients offer a variety of financial products and services to meet their needs. Unlike a mortgage lender who may have multiple mortgage products but only offers mortgages, brokers often deal with multiple products, including but not limited to mortgages, business acquisition loans, equipment leases, working capital solutions, and more.
- A network of lenders. An experienced broker will have access to a network of lenders within your financial product to consider the transaction from him. ABC Mortgage may even be one of the lenders in your network. Now, in addition to the 5 ABC products, your broker can also see 7 mortgage products from World of Mortgages, as well as 3 offers from Mortgages R Us. Your mortgage options have increased from 5 to 15, only through a broker. Also, the broker doesn’t have to sell you a lot on ABC Mortgage products because you now have options. Brokers work on your behalf to find the best solution for your needs.
- Build a relationship now and later. As I mentioned at the beginning of this article, you can consider your broker to be an affiliate. You may only need a mortgage at this time, but you may need equipment and furniture for your location in the future. Equipment Leasing – Your broker will take care of this. A customer placed a large order (good news), but didn’t have enough inventory to fulfill the order (bad news)? Purchase Order Financing – Your broker has a solution for you.
- Impact on your credit rating. Another thing to consider, if you have multiple requests in a short period of time, there will only be one request from your broker on your credit history, compared to several requests from various credit institutions that you visited to close your transactions. Many people are surprised to learn how their FICO scores are adversely affected by multiple applications in a short period of time, even if no credit has been made.
As with any relationship, you may have to work hard to find the best partner, broker, or someone else for you. You now have additional information to help you make an informed decision when choosing a business finance partner.