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Why Use A Commercial Broker For Business Finance?
In this article, we’ll cover what and why to use a commercial broker when considering business finance. For more insight on why choose us, don’t forget to visit our broker page. Why Use Portman As Your Finance Broker?
What Is A Commercial Finance Broker?
Finance brokers are individuals that match a business looking to borrow funds, with a lender who can provide it. They search the market for you, but because the business finance market is complex it takes an element of skill to find the right funder for each situation. A commercial finance broker is simply the same but for businesses.
Commercial finance brokers are finance professionals that are dedicated to helping businesses secure the right finance for their business. Great intermediaries, a broker will connect you with finance lenders whose products match your needs, often ones that you are unable to access directly. They save your business time and the effort required for extensive comparisons.
Why Do You Need A Finance Broker?
Securing the right funding for your business could be a critical step toward growth and success. Finding a lender that offers what you need and writing a business case that promotes the strength of your company does take some skill. While some businesses may have in-house financial expertise, a broker offers distinct advantages that can streamline the process, save time, and deliver tailored solutions.
You compare the market for your personal car insurance and utility bills, why not let us go compare business finance on your behalf by searching our panel of providers, and giving you the available options.
What are the direct benefits of using a commercial broker?
1. Access to a wider market of business finance
Finance brokers have established relationships with a diverse network of lenders way beyond traditional banks. Alternative financiers, specialists in particular sectors or types of product, those that look for stronger or weaker credit, or funders that will cover even small elements of a project such as building works, should be within reach of a good broker. This then gives you access to a broader range of financing options that may not be readily available if you were to approach lenders independently.
Whether you need a standard business loan, asset finance, or a more complex syndicated deal. a commercial broker can connect you with the right solution.
2. An expert negotiator to get you better terms
A commercial broker acts as your advocate, using their industry knowledge and lender relationships to negotiate favourable terms on your behalf. This includes securing competitive interest rates, flexible schedules and repayment terms that best align with your cash flow needs.
A commercial finance broker’s expertise ensures you get a deal tailored to your business’s unique needs.
3. Syndicated deals
Approach a bank and eventually you’ll likely get a yes or no for one of a couple of products to cover your entire project, or an offer of funding for just the part of your project they are happy with. Working with an array of different specialist lenders Portman however, can identify funders willing to lend on various parts of your project or contribute to a total value. This way you can spread the cost of everything from the catering equipment to the furniture, decoration works to delivery vehicle, all in one finance bundle.
4. Support for businesses with challenged credit
If your business has a poor credit history, or operates in an area that banks don’t like to fund, securing finance can be difficult. Finance brokers specialise in finding solutions for companies in this position, connecting them with lenders who are more flexible or specialise in tier 3 credit financing. This can open doors to funding that might otherwise be inaccessible, which also allows you to build your credit rating for the future.
5. Business credit protection
When searching for finance independently, approaching multiple lenders results in a hard credit check each time. Not only does this number add up and affect your credit score, choosing the wrong lender can result in being turned down for credit, which can have a bigger negative impact your score. Using a knowledgeable broker who is more likely to know which lender suits you and where you are most likely to be accepted for finance. This reduces the impact on your business credit profile and increases your chances of approval.
For more on understanding your business credit score and how to manage it, take a look through our articles or contact us for support.
- Understanding Experian Business Credit Reports
- Understanding & Utilising Business Credit Checks
- How to Improve Your Credit Score in the UK
- How to Check & Monitor Your Business Credit Score
- Business Credit Score: Why It Matters & How to Improve It
What to look for when choosing a finance broker
Choosing the right commercial finance broker is a critical decision that can significantly impact your business’s financial future. Here are a few key factors to consider when making your selection.
Reputation, experience & transparency ▶ Look for a broker with a proven track record and positive customer testimonials. Experience in your industry or with businesses of your size is a bonus. A reputable broker will be clear about their fees, processes, and the range of products they can offer you.
Range of lenders ▶ Ensure your choice of broker has a wide network of lenders and provider options. They don’t need to have hundreds, but they need to cater for your situation.
Are they a standalone independent or an Approved Representative ▶ Approved Representatives are supported by another business. Elements of their process and compliance have to be supervised by another approved business. Their lender relationships are typically managed for them. This all means they don’t have the same power to act on your behalf as an independent broker.
Personalised Service ▶ Its better to choose a finance broker who takes time to consider and understand your business’s unique needs then provides tailored solutions than one who defaults to their product of choice.
Support & Guidance ▶ Opt for a broker who offers dedicated support throughout the entire process, from initial consultation to final finance approval.
Why you should choose Portman as you commercial finance broker, lender & partner
At Portman, we go beyond the role of a traditional broker to become a trusted business finance partner that you can trust. Here’s why we standout:
We provide a seamless and supportive experience, from start-to-finish ▶ When you choose finance through Portman, you’ll be assigned a dedicated Account Manager who will guide you through every step of the finance process. From our enquiry form to a finance agreement, your account Manager will handle your requirements, address any queries, and ensure a smooth journey to your finance agreement.
A broker and lender in one ▶ Unlike traditional brokers, we’re not a one-trick-pony and double up as lender with our own finance options, giving us unique flexibility to support UK businesses. Our dual role allows us to offer tailored solutions, offer exclusive funding and build financial solutions that others cannot.
Expertise and experience ▶ Time-served matters. The financial markets are complex, understanding the nuances of each lender and products requires experience. A Director oversees every proposal for every customer so you benefit from decades of experience.
For more about Portman, explore our About Us section to learn more about our mission and values. Visit our Broker Page to discover how choosing Portman as your commercial finance broker can help boost your business projects and drive your success.
Written by Saul Michelson
Degree and Post-Grad qualified with 23 years business-to-business experience, Saul is a well-rounded senior professional. A previous winner of Marketing Week’s ‘Best B2B Campaign’ award and two Construction Marketing Awards, Saul enjoys finding out what makes businesses tick and writing articles that get straight to the point.
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