4 Advantages of using a Commercial Finance Broker

A fully independent commercial finance broker should possess all the skills, experience and contacts required to find the very best finance package for each of your business needs, helping you to gain financial flexibility for your business. The broker’s aim is to strive to find a lender with the best financing solution for even the most complex scenarios.

‘Back in the day’ funding business growth tended to be delivered through a bank manager at the heart of the local community in which they worked with business owners and professional partners to understand the business needs and deliver solutions. In recent years the enforced cultural changes within the banks has left a gap which is increasingly bridged by alternative finance providers, delivered through commercial brokers working as conduits to lenders, banks, accountants and other professional partners on behalf of the business owner.

Advantages of Using a Broker

A growing awareness by companies to embrace alternative finance has helped business brokers to flourish in recent years. But what are the advantages of using a business brokerage? Well, not only do they help to secure lending for businesses that cannot get it from the banks on their own, but they also provide an array of products and services as standalone, or ‘whole-life’ packaged solutions…

1.      Funding where traditional security is unavailable

A commercial broker can help you to access financial solutions for growth, where traditional bank of facilities tend to be restricted to debentures, and guarantees, supported by property security.

2.      Multiple funding sources across a variety of products and specialist lenders

Brokers are specialists in working with commercial banks, accountants, and other professional partners to deliver ‘added value’ alternative funding solutions to business customers. The sector is increasingly able and willing to fund large and complex deals, often sitting alongside traditional bank loan facilities. 

Brokers naturally look to lenders to offer good support, attractive terms and outstanding service, and these are usually the three aspects that attract new business in the first instance. Brokers are continually challenging their lenders to maintain the strength and diversity of funding lines as it is these that enable a broker to anticipate and react to market changes and to access the various lending criteria.

The best brokers will ensure that funding panels are regularly reviewed, with lenders added and removed to optimise scope and a healthy competitive edge.

3.      Diversity – Strong relationships through multiple channels

Commercial brokers must primarily develop long-term relationships with lending partners and customers alike if they are to be successful. Brokers offer a wide variety of lending solutions and all of these must be backed by strong inter-personal relationships underpin flexibility by way of financial solutions. As broker income tends to be transactional, it is imperative that brokers focus on service levels to ensure future repeat business. The broker relationship with business owners is one of the reasons lenders place so much importance on their broker networks as a key route to market.

4.      Bespoke - They look at cases on an individual basis

Long established commercial brokers aim to look at all cases on an individual basis and do not make blanket decisions about scenarios, people or markets.

Brokers support funding for new-start and developing businesses as well as more established small to medium businesses, and large corporates. They actively seek out the most appropriate loan or financial solution for their clients at the best rate.

A creative approach to the ‘conundrum’ and the available ‘tools’ are often the key.

Commercial finance needs an expert 

Commercial finance is a complicated subject; its tailored approach requires a good degree of skill and experience to find the right solution. If your business needs finance, you would be wise to seek a commercial brokerage. The advantage of using a professional broker to find bespoke funding through a ‘whole’ market resource means you can save time and money that could better spent on the core running of your business.

Could alternative financing improve your business?

At B2B Cashflow Solutions, we facilitate a range of commercial brokerage services including asset finance, fundraising against existing working assets, grant funding, invoice finance, unsecured business loans, commercial mortgages, financial health-checks and strategic planning. If you feel your business could benefit from guidance or support from an award-winning firm with expertise in alternative financing, please get in touch. 

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