July 2nd, 2013.
What Do Commercial Finance Brokers Do?
There are many methods that you can try to get a loan for a commercial property. You could approach the banks yourself, going through the time-consuming process of trying to source the best deals, or you could eliminate the stress and enlist the help of commercial finance brokers. But what is commercial finance? What are the benefits of working with a commercial broker? And, crucially, what do they do? Find out here as we discuss commercial finance in greater detail.
What Is Commercial Finance?
Before reviewing the role of a commercial finance broker, it is key to understand exactly what commercial finance is. Commercial or business finance is an umbrella term used to describe the various financial products provided to a company by a third-party provider.
Commercial finance can be used for a variety of reasons on a short or long-term basis. Sometimes, businesses may require an influx of cash to help with immediate objectives. Rather than waiting for the business to generate enough capital, some may look towards commercial finance brokers for a loan.
Here at Pure Property Finance, we deal with commercial property finance: loans for the purchase or development of homes or business spaces.
The Basic Job Role Of The Commercial Finance Broker
If you go to your bank and enquire about a loan or visit an online comparison site, then it is highly unlikely that you will find the best rates available. However, a commercial finance broker goes a step further, using their knowledge and contacts with various banks, building societies and financial lenders to get a package that will suit your business.
Backed by their financial expertise, commercial finance brokers aim to get you the best financial solution for your needs by acting as a middleman between the lender and yourself, building a bespoke application which makes you look like a desirable borrower. They research and negotiate on your behalf to acquire even competitive deals.
Properly Packaged Applications
Applying for a commercial mortgage can be an arduous task. Generally, they require much more information than their residential counterpart. Every commercial lender has a preference towards specific industries which they are happy to lend to and others which they try to avoid. Good brokers will know exactly who to pitch your business to and increase its appeal. This can help sort through brokers that don’t want to deal with you, while securing good rates from the ones that do!
Using a commercial finance broker allows you to save time that can be put towards managing your business. Once you’ve given all the relevant information to the broker, they will be able to contact every commercial lender to find the best deals for you. Brokers understand the ins and outs of mortgage application forms and will have developed relationships with lenders. This allows them to fast-track applications and understand the chances of acceptance in advance.
Spend Money to Save Money
Although mortgage brokers cost money, in the long term you will be saving yourself a fortune. Consider the broker as an employee; you are paying them to do a job and save you money! Without them you may have spent hours, days and maybe even weeks chasing down lenders and trying to find the best deal – not only do you save money, you also save valuable time.
Brokers With You In Mind
In the industry, brokers have received a bad name for poor customer service. Here at Pure Commercial Finance, we’re working to change that reputation and are dedicated to getting your company the best possible rates while keeping you informed.
To find out more about how Pure Commercial Finance can help you give us a call today.