How to find a broker for Bank Loan AlternativesPublished on 8th May 2018 - Last update on 30th October 2018
Running your own business is a tough and demanding responsibility, but if you’re willing to put the work in there’s no reason why it can’t turn into a success. However, although both a detailed business plan and dedicated team are both key ingredients, the stumbling block you may need to overcome is funding. Naturally, your first thought might be to approach your high street bank. Yet, despite banks still playing a vital role in financing British business, meeting the necessary criteria has become challenging, especially if you’re an SME. But, there is another route that you can take. If you’re determined to make your vision a reality, you could apply for a Bank Loan Alternative. However, with so many different business finance solutions to choose from, seeking the services of a qualified broker can prove invaluable. So if you need helping sourcing the most appropriate business finance solution, these are just some of the questions you need to ask when choosing a broker for a Bank Loan Alternative:
- What sectors do they work with?
- How many products do they cover?
- How many lenders are they associated with?
- How close is their relationship?
- How do their services stand with their past clients?
How much experience do they have in my sector?
When deciding on which broker to work with, you need to be satisfied that you’re using someone who has sufficient knowledge and experience in your sector. They should already be aware of what challenges you can expect to face and the complexities that are involved in how your sector operates. Plus, their experience should also put them in a strong position to identify which lenders to approach and form a successful presentation strategy, helping to give you the edge you need, along with a competitive rate.
How many products do they work with?
Your chosen lender should be able to work with as many products as possible for you to get the right deal. In some cases, brokers may only work with a single type of finance. However, only by being made aware of what business finance solutions are available can you have confidence that you’re applying for a solution that takes into account how your business operates. So if you’re looking to source an appropriate alternative to a bank loan, the products that you should be able to access may include Secured and Unsecured business loans, Invoice Financing, Inventory Financing and Merchant Cash Advance. Therefore, your chosen broker should be able to reflect this diversity in the services they’re offering to your business.
How many lenders can they source an agreement from?
In addition, your chosen Bank Loan Alternatives broker should be able to work with as many lenders as possible. This is vital to allow you to compare similar products from across the business lending community, helping you to source an appropriate agreement at a competitive rate. Therefore, choosing a broker who works with a range of lenders could be instrumental in saving your business money in the long run.
How close are their lender relationships?
Whenever you work with a broker, you need to have confidence that the recommendations they’re presenting are in your business’ best interest. Impartiality is of huge importance as it means that you will see the most appropriate deal for your business and not the broker’s business. However, this isn’t always the case. Sometimes the broker may have an undisclosed agreement that sees them benefitting each time they send a client to a particular group of lenders. It could even be the case that the broker owns that particular lender. But whatever the reason may be, if you suspect such an arrangement is in place, it’s a breach of your trust. As such, you need to consider carefully where you stand in regards to the further use of their services.
How satisfied are their past clients?
Finally, you also need to make sure that the broker is someone your business can form a strong relationship with. This can be achieved by assessing how their past clients rate their services by reviewing case studies, online reviews and community forums. As well as assessing the positives of their services, also take into account the negatives. If you see that one customer had a bad experience try to understand what lead to the situation and if it could have been avoided. However, if you notice a strong pattern of dissatisfaction emerging it may indicate that there are issues regarding how they operate and their work ethic. If this is the case, consider exploring what other Bank Loan Alternatives brokers are available.
Need help searching for an appropriate Bank Loan Alternative?
Searching for an appropriate finance solution for your business can be daunting. With so many different business finance solution to choose from, how can you be certain that you wouldn’t have found a more favourable deal elsewhere? Although this question worries many business owners, it doesn’t need to be that way for you. If you’re looking for an appropriate Bank Loan Alternative for your business, the solution could be within your reach. All you need to know is where to look. Fortunately, we’ve already done the hard work for you.
At Rangewell, we’re an Access to Finance specialist that works with over 300 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide through the application process. So if you’re looking for funding opportunities outside your local high street bank, apply for a Bank Loan Alternative today or find out more with Rangewell.
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