Every year in Australia, thousands of small businesses need some sort of support to sustain their business activity. Whether it is to cover a temporary short cash flow or an unexpected expense or to face a small investment to expand or grow the business, there are a large number of traditional financial institutions such as banks and alternative lenders that offer various types of small business loans.
What is a finance broker?
A finance broker such as Sure Capital exists to guide a business through the different loans solutions available in the market. Each small business loan solution has features that can be pros or cons depending on the nature of the business, its industry and its current financial situation. A finance broker put the client first helping primarily to understand the advantages and disadvantages of the available lending solutions. A finance broker tends to educate the client to develop a long-lasting and trustworthy relationship. A finance decision made today could have an impact on future choices that a client needs to make. Some small business loan options, despite reasonable interest rates, may restrain the business to get access to other business loans if necessary. Other forms of business finance might be suitable for the short term but not for the long term.
How much does it cost a finance broker?
A finance broker is an intermediary between a business seeking a loan and a financial institution or a lender. The finance broker usually organises loans for a fee that in most cases is paid by the lender in the form of a commission (one-off or introduction fee plus “trailing commission”). A finance broker deals with the lenders on behalf of the client and arranges a loan with the best deal as possible.
What type of small business loan can a finance broker help with?
A finance broker is an expert consultant that assists a client to choose between secured or unsecured business loans, business line of credit, merchant cash advance, equipment finance or invoice factoring. Each of these small business loans solutions has benefits to be weighed against some disadvantages.
Talking, for example, about unsecured business loans, for a client that search online for loans options, it is tough to know which criteria the lender uses to assess the business loan application. Some of them are more flexible than others because they are willing to take higher risk. This result in a higher interest rate but at the same time, more accessible and faster approval process. The interest rate is an important aspect to take into consideration when choosing a lender, but it is not a critical factor. The main goal when applying is getting approved for the amount needed. Especially when the money is required to buy stock or make an investment that generates an increase in revenue, the interest rate becomes marginal.
Should you use a finance broker?
Sure Capital is a finance broker, but it is fully aware that our service is not for anyone. Every client has the right to decide if and when using a finance broker. Please consider that a finance broker works for you and should always have in mind your best interest and get the best deal for you. Feel free to ask any questions to your finance broker and if you are not satisfied with the answers to go to seek a second option from another broker or contact directly various lenders.
Talking directly with 5-10 lenders could be overwhelming for a client and time-consuming. This is the reason why a finance broker is a good value when it does the job on your behalf. Competitive rate and right repayments term are the two key factors to take into consideration when looking for the best deal.
We are famous for our 24-hours approval process
At Sure Capital, our experienced consultant first understands your need and guide you through a pre-approval process that qualifies you for the best-shortlisted lenders. We have developed a process that allows us in 99% of the cases to get the money in our clients’ bank account within 24 hours from the application. Partnering with over 50+ business loan providers, we unlock credit opportunities for your business. Thanks to our industry knowledge, we guide you through the process to find the lender that can provide the type and size of business loan that you are looking for.