Commercial Finance Brokers
Launching and expanding a business can be extremely challenging and expensive. Business owners often struggle with the time-consuming process of researching possible lenders, negotiating favourable terms, and obtaining and handling capital.
Commercial finance brokers can address these challenges by negotiating the best possible terms with banks on your behalf, assisting you in obtaining financing, and offering professional guidance.
What Does A Commercial Finance Broker Do?
Commercial finance brokers are independent intermediaries that help businesses facilitate financial transactions with lenders. Their role is to help businesses secure funding by working with multiple lenders, including banks, credit unions, private lenders, and alternative service providers.
A commercial finance broker’s primary responsibility is to assess their client’s financial needs and objectives. They work closely with entrepreneurs to gain a comprehensive understanding of their business, focusing on funding requirements, financial objectives, and long-term company goals. Being independent, they aren’t tied to any lender but use their expertise, industry knowledge, and network of contacts to find the most suitable financing solutions for their clients.
In 2023, commercial finance brokers facilitated £38 billion in lending to small and medium-sized enterprises as revealed in the latest membership survey findings from the National Association of Commercial Finance Brokers (NACFB).
With a deep knowledge of clients’ financial situations, commercial finance brokers can search for customised financing solutions that are more likely to be approved by lender. The data from NACFB’s survey confirms this, revealing brokers arranged funding for 32% of small businesses that faced capital refusals elsewhere.
Brokers play a crucial role in securing commercial finance, with key benefits including:
A Vast Network of Lenders: Brokers typically have established relationships with a diverse range of lenders, enabling them to offer deals that individuals couldn’t secure individually. Not being individually tied to specific lenders can be the key to securing the best possible financing deal. While high street banks or private lenders may not be interested in financing, private lenders from the broker’s network could finance a deal with a higher risk. Furthermore, brokers’ broad network from various jurisdictions allows them to find the best terms to match your specific needs.
Industry Expertise: Brokers offer specialised expertise in the finance sector, such as awareness of complicated financial environments and products or critical insights into market trends. Their knowledge can be critical to negotiating the best terms for your specific requirements.
Tailored Financial Solutions: Commercial finance brokers specialise in securing bespoke services based on companies’ unique financial circumstances and objectives. They can secure customised financing options that maximise long-term financial stability and short-term cash flow while matching your strategic goals.
Regulatory Compliance: Businesses often struggle to independently navigate the regulatory obligations across the financial sector, which can see them at risk of heavy fines and serious legal issues. Commercial finance brokers regulated by the Financial Conduct Authority (FCA) guarantee transactions adhere to the relevant legal criteria and comply with the most recent financial legislation.
Time and Cost-Saving: Finding, negotiating, and securing funds can be costly and time-consuming when done alone. Brokers speed up this process and reduce the cost of obtaining credit by handling the challenging aspects of loan applications and negotiations.
Secure Your Commercial Finance With Hectocorn
Companies looking for funding alternatives can reap multiple benefits by collaborating with a commercial finance broker. Partnering with an expert broker can streamline the finance process, increase your chance of success, and save you time, effort, and money.
Hectocorn’s expertise has allowed us to establish close relationships with specialist lenders you can’t access through high-street institutions. We help organisations source the most advantageous finance options and secure favourable deals on commercial properties. Our team of experts advises you on the most beneficial financial routes and operates as your partner to secure the most appropriate lender.
For more information, contact us at [email protected].
