When you work with a finance broker, there are three relationships at play. There is your relationship with us, our relationship with the lender and the lender’s relationship with you. Many people see finance as a straight line with a finance broker sitting in the middle. The truth is, it’s a triangle. All three parties (including you) play their own role. It’s a relationship.
Understanding these three roles, including your own, is vital to accessing the right lending. It will enable you to write better applications and work with your broker to create a seamless process. Here are the core roles each party plays, and how they benefit you.
Your Role
No one understands your business or your property deal better than you. Your broker, and the lenders they’re working with, need as much information as you can give them on these topics.
The key to accessing the best finance product with the best rates is to provide your broker with as much information as possible. For example, what assets do you have that you’d be happy for the lender to take a charge against? Why do you need this finance and how do you plan to pay it back? If it’s a property deal, then what relevant experience do you and your team have?
Finance forms look boring, and it’s easy to give bullet-point answers. However, the more information you give, the more likely you are to get a “yes” from the lender. If you get stuck on your form or you’re not sure what to put, then speak to your broker, they’ll help.
The Brokers Role
A broker works on your behalf to find the finance you need. It’s in their best interest to get you the best interest rates! We’re a bit like a finance travel agent, you tell us what you need, and we find you something that matches those requirements.
When we’re not working with you, we’re building relationships with lenders. These relationships give us access to finance products which are only available to brokers.
The right broker with the right relationships will get you deals that are inaccessible to anyone else. For example, we have access to a bridging finance product where the lender lends to you based on the purchase price of a property and not the RICs survey. You can discover more about that here.
Also, a broker will help you to choose the right finance product. There might be a time when you think you need a standard business loan, but a different type of finance, like merchant cash advance, will be better for your cash flow.
The Lenders Role
After you have filled out the relevant forms, your broker passes them to a few lenders to see which one has the best offer. Loan repayments are paid directly to the lender that you choose to work with.
Once your broker has all the information, they’ll pass it back to you alongside an offer in principle. The broker will continue to work on your behalf and liaise between you and the lender until the finance has been paid back.
Your broker will tell you the name of the lender you’re working with, so you’re never kept in the dark. Working through your broker streamlines the process and gives you one point of contact.
An Extra Member of Your Team
As you can see from this blog, we work as an active member of your team to secure you the best deals on the market, deals that only we have access to.
Discover more about how we help you to grow your business by booking a free consultation call here. We’ll run through your business goals and find you a finance solution that will help you to meet them.