Often, the reason you’re looking for a Finance Broker is that you need additional funds to keep your business running as usual or to invest in a particular area. You don’t want to waste time speaking to lenders or scrolling through terms and conditions when your skills and time can be put to better use. But how do you know if a Finance Broker has your best interests?
What is a Finance Broker?
A Finance Broker works independently on behalf of a business. Helping them source a suitable financial solution often in the form of a loan. They’ll review the entire financial market as well as multiple banks and lenders, to find the most attractive term agreements and affordable repayment options to meet their client’s needs. Saving business owners’ stress, time and money by sourcing these funds themselves.
What should I look for in a Finance Broker?
Check their experience
You don’t need an entire interview process here. A scan of their website should be enough to tell you how long they’ve worked in Finance, what type of industries they’ve worked with and the types of finance they can deal with. They should have a wealth of knowledge to suggest the best solution for you.
Are they FCA Regulated?
If you’re new to the business, you might not be aware of the regulations around finance. By using a Finance Broker who is FCA Regulated, means they have the relevant qualifications to operate lawfully. It provides extra protection and demonstrates that your broker takes their role and this industry seriously.
They Promote Responsible Lending
Finance solutions are essentially a debt for your business to pay back. A good Finance Broker will never source a solution which puts you in an unrealistic position to meet the regular repayments or put you into further debt.
They should be asking questions about you and your business; checking how you’ll repay the loan, how much you can afford or any collateral. Not only will this protect you, but the more information you provide can often help find the best deals.
Look at the Lenders they work with
Some Brokers are tied to a specific Lender and can therefore only source finance loans from them. This may not always be the best option or offer the best terms of the agreement. Independent Brokers, like Busby Finance, have access to the whole market. Meaning we can access multiple lenders to find the right fit for you.
Their fee structure
A Broker will go through the terms and conditions of your loan and the Lender’s term agreements. However, they should also go through their own contract and any additional fees. Some Brokers will take a commission from their customers, or charge administration, meeting or documentation costs. So, it’s important to clarify this at the start.
Do you get on?
Ultimately, you want a Broker who cares about you and your business. They’ll show interest not only in your current situation but how you began, where you want your business to reach as well as your goals along the way. They’ll be cheering you on and will therefore provide appropriate advice and finance options to suit you.
Get In contact
Got a question? Contact the Busby Team today to see how we can help you.
