How to find a broker for Inventory FinancePublished on 13th July 2018 2018-07-13T09:09:11+00:00 - Last update on 1st April 2020 2020-04-01T12:57:07+00:00
It stands to reason that if you tend to the needs of your customers, your business will continue to grow from strength to strength. But keeping customers pleased with what your business has to offer isn’t always a simple matter, especially when it comes to maintaining a well-stocked inventory. Customers are easily disgruntled when products are out of stock, or they have to wait for deliveries to come in. This is where Inventory Financing can help, offering your business a line of credit. With access to a lender-controlled facility, you could benefit from a set allowance each month granting you the ability to replenish supplies, acquire fresh stock or gain support during slow periods. However, with so many Inventory Finance products and lenders to choose from, seeking the services of a finance broker can be a very wise decision. But how do you, in turn, source a broker who truly understands your business’ needs?
What sectors do they specialise in?
Although Inventory Finance is designed to help finance all manner of stock, supplies, ingredients and raw materials that you may require inside your business’ inventory, you need a broker who understands your sector and the unique challenges you face. For example, if you’re a restaurant owner and the broker predominantly works with retailers they make lack sufficient knowledge and experience to pitch your application to a lender. This could lead to a number of issues and may result in the lender not possessing sufficient information to place a value on your existing inventory. As a result, the allowance that your business could receive access to may not be appropriate for your business’ needs.
How many lenders do they cover?
When choosing a broker to help find you an appropriate Inventory Finance solution, you’ll need to work with someone who covers a wide range of business lenders. This will strengthen your ability to compare a number of different products, enabling you to source a solution that truly suits your business’ needs and at a competitive rate too. Therefore, the more lenders they cover the more comprehensive your search will be.
How closely linked are they to their associated lenders?
Another factor to consider when sourcing an appropriate lender for your business is the relationship between them and their associated lenders. As a business owner, you are trusting them to offer you advice that’s impartial and unbiased. So when they when present you with potential Inventory Finance solutions, you need to be certain that their recommendations will be of benefit to your business and not for their own convenience. However, with some brokers, that isn’t always the case. If you’re frequently being shown products from the same lender(s) this could be cause for concern. It may signal that their relationship goes further than what you were lead to believe or that they may even be the lender in question. In either case, this arrangement may not be entirely to your business’ benefit.
Are there any limitations on how goods can be sold?
If you’re seeking the services of a broker, make sure that the lenders they present you with don’t impose tight restrictions on how you can sell inventory to your customers. But, if there are, make sure that they and the lender thoroughly explain all of these restrictions before committing to any agreements. In some cases, it may just be that the lender wishes to ensure that you’re not acquiring more stock than you actually need, which could lead to you selling products at a loss in order to free up inventory space or release working capital. Nevertheless, you must ensure that you have a comprehensive understanding of the agreement in order to avoid falling foul of the agreement’s terms and conditions.
How do past customers rate their services?
Before deciding on an Inventory Financing broker, be sure to review how their past clients rate their services. You can do this by reading case studies, customer reviews and any online community forums discussing their services. Although you’ll need to keep an open mind, since everyone’s experiences are unique to themselves, it can give you an idea of what to expect and offer insight into any potential issues. If there was a breakdown in the relationship between a particular client and the broker, try to address why this happened and how it could’ve been avoided. But if there is a consistent pattern of dissatisfaction, it may indicate that there are issues regarding how they operate.
Looking for an Inventory Finance broker?
Making sure that your business has the resources it needs to operate and serve your customers is crucial. Only by making the most of every opportunity that comes your way can your business continue to grow and thrive. However, that isn’t always a simple task to complete, especially if you’re working to a tight budget. That is why more and more business owners are applying for Inventory Finance. But with so many products and lenders to choose from, how can you be sure that you’re making the most appropriate decision for your business?
At Rangewell, we go beyond your typical finance broker. We’re an Access to Finance specialist working with over 300 lenders to source an appropriate solution from more than 23,000 business finance products. Our services are free and impartial, and we’ll also guide you through each step of the application process. So if you’re looking bring in fresh stock or need help supporting your cash flow, apply for Inventory Financing today, or find out more at Rangewell.
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