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Commercial Finance Broker Benefits

Hiring a Business Finance Broker Perth is often recommended as a way to save money. Whether you are a small business owner or an accountant, using a business finance broker can save you both money and time. So why run the risk to locate reliable sources of capital for your business?

commercial finance broker

Like accountants and financial planners, business finance brokers provide their expertise by providing you with various financial products and financing options that can suit your individual needs and budget. These experts can also help you determine which financial solution will best meet your business needs and help you locate the best lender to provide you with the financial products and services you need. Here are several of the financial solutions offered by these brokers.

Commercial mortgage and finance: A business finance broker can assist you with the process of obtaining commercial mortgage financing. Commercial mortgage financing is used to purchase property and create a loan for specific purposes such as equipment or machinery. This type of funding is used for large purchases such as buildings or apartment complexes. Many commercial finance companies offer this type of financing, but some do not. Before you use a broker to obtain this type of funding, make sure that he/she is a certified mortgage broker and can give you references from other clients who have successfully received a commercial mortgage. In addition, make sure that the broker is an accredited dealer.

Small business financing: If your company is starting and does not have any property to purchase, this may be your only option. Many commercial finance companies provide this kind of financing for new businesses. To find the best deal, it’s wise to compare at least three quotes from different companies. When comparing quotes, it’s wise to look at the interest rates and other charges.

There are several financial products available for small businesses, such as general obligation commercial mortgages (GO), working capital advances (WFE), and merchant cash advance (MCFA). Commercial mortgages are the most flexible financial solutions, as they can be adjusted according to the circumstances of the business. This type of financing is perfect for companies that are not expecting significant income immediately and only seek a short-term financial solution until their business is established.

Working capital advances are designed for businesses that expect to generate a significant cash flow within the first year. These loans require no collateral, so there are few risks involved. However, they come with a high-interest rate and high fees. Merchant cash advances are designed explicitly for small businesses that are expanding their customer base rapidly. These types of loans are available through most business finance brokers.

A third option is to go through a middle man, i.e., a commercial broker. A commercial broker will act as a third party between you and the lender. They do this by negotiating on your behalf and brokering a deal where you get a low rate and affordable monthly payments. If a middle man is not used, the lender may set higher rates or fees. For this reason, it is usually best to go through a commercial broker.

One last benefit of using a commercial finance broker is the expediency to apply for various loans. Most business finance lenders have online application systems, and some even offer online applications that can be completed in minutes. When you use a broker, they can match you with the lender with the best rate and terms. Brokers do not carry any other obligations or liabilities than those they incur when acting on your behalf.