Financial solutions for mortgage advisors

Working as a mortgage broker can be very rewarding - but it brings some real business challenges, especially when you are ready to run your own business. Setting up and growing your own mortgage advisory business can mean overheads, tax headaches and cash flow worries.

You need to invest to get customers calling you, to build a professional reputation and to build business volume if you are to enjoy the level of income you want.

Fortunately, at Rangewell we can help. We work with property professionals across the UK. We know the challenges you face - and the financial solutions that can provide the most effective answers to them need.

The funding options you need as a mortgage advisor

You may need help to find the most cost-effective funding solutions for:

• Setting up a new business
• Buying into an existing property business
• Acquiring equipment and assets
• Provide working capital
• Cashflow finance
• Finance growth
• Deal with tax
• Dealing with problems

Setting up a new mortgage advisory business

If you are an experienced mortgage advisor and ready to set up your own business, your initial funding needs may appear to be relatively small.

Your skills, experience and contacts are your trade, and most of your business can be carried out remotely. You may not need to physically meet every client, and you may feel that you may be able to work from home, with your mobile phone and laptop as your main business tools.

However, starting up will still mean challenges. You will need to advertise your services and, no matter how effective you are at finding the right mortgage deals for your clients, the first weeks and months of being your own boss may be worryingly slow in terms of revenue.

You will need to invest in building your business with advertising, social media and a website before you can expect to achieve the level of profitable enquiries that you want. Even if you have forged relationships with financial advisors and estate agents which bring in enquiries, you will need to spend money to keep your phone ringing. You will need a vehicle if you are going to make home visits, and many potential clients will feel more confident about using your services if you have an identifiable business address.

Sooner or later, you will need premises of your own, where clients can come to you if you are to be able to deal with the volume of business you want to do. The costs may soon mount up.

Your bank may not be able to lend if you’re starting up a new business. Without a trading history, many lenders will be unwilling to help.

Fortunately, at Rangewell we understand the challenges - and know the lenders who can support new business ventures.

Find out more about new business funding for mortgage advisors.

Buying into an existing mortgage advisory business

Buying into an existing mortgage advisory business as a partner, or even buying it outright, could turn out to be simpler than starting up from scratch yourself.

Buying into an existing business not only means that you own a business that is profitable from day 1, it allows lenders to see that the business has a trading history, helping them feel confident that they will be repaid and making it easier for them to approve the funding you need.

The cost of buying into an existing business might seem initially high - they will reflect the turnover of the business and the potential it offers for the future. However because lenders have the confidence of existing accounts, they may be able to charge less for the funds you need. It can frequently make buying an existing business more cost-effective than starting up from scratch.

At Rangewell, we can help you secure a number of solutions to help you buy into an established practice. These include both funding for Partner Buy-ins and Buyouts, which will let you become a partner or even acquire an entire business, and business acquisition funding, which will often take the form of a Secured Loan.

Expanding by acquiring a property sales agency

If you already own an established practice, you might want to consider acquisitions, mergers or expansion.

We can provide solutions to let you buy a business, or to selectively acquire assets - such as the goodwill and client list - from an existing property sales business closing down for reasons such as retirement.

Funding premises for mortgage advisory businesses

Taking your mortgage advisory business to the next level may require you taking on premises. Naturally, the actual cost of renting even a small office will depend on your location and the square footage you need - it may be best to take on more space than might be necessary to let you expand in the future.

Remember, there may be service charges and business rates on top of the bare lease and you may need to pay upfront to secure the agreement. Thankfully, we can provide a number of solutions to help you.

Of course, renting will mean ongoing costs and leaves your business at risk of rent increases. As a mortgage advisor, you may feel confident that you can secure the best deal for your own needs. However, if you specialise in residential mortgages, you might still benefit from Rangewell's expertise in the commercial sector. We can provide solutions which will let you buy the premises you already operate from or buy a new freehold property to use as your offices in the future.

Refurbishing premises for your mortgage advisor business

Buying premises may be a good tactic for your business, but you may need to make an additional investment to bring premises up to the standard you need.

We can provide solutions which will let you fund refurbishments - from simple decoration to major building work and extensions that will add value to your property.

Funding for equipment

As a mortgage advisor, your equipment needs may be simple. However, your IT setup, your computers and printer will be expensive items, and you may need specialised software with operating licenses and renewals, training and maintenance.

The list of equipment you need will not stop there. You will also need to furnish your office, and you will need a vehicle which helps support a professional image for your business.

Asset Funding can usually provide the most cost-effective solution for most business equipment needs.

There are several types of Asset Funding. Hire Purchase may be ideal for items that you will wish to keep, such as desks, chairs and document storage. Leasing may be more appropriate for your IT, as it will allow you to update to use the latest and most reliable technology whenever you need it. Contract Hire might help you reduce the costs of providing vehicles.

At Rangewell our experts can help you help you find the most appropriate Asset Funding solutions for your property sales business, with both HP and lease agreements, together with business Contract Hire for your vehicles.

We also have specialised funding to help you provide and upgrade your IT equipment.

Cashflow Finance for mortgage advisors

Overheads are part of any business and will mean a constant drain on your resources. When business is slow, perhaps when your business has not been long established, cash flow can be a problem.

Cashflow support and Working Capital Finance can provide cash to deal with these costs and overheads. It can provide a cash lump sum to help you deal with the bills and is usually designed to be repaid in the short- to medium-term, once your business has developed enough to provide a steady income stream.

Even when your business is up and running, cash flow can be difficult to predict. A downturn in the market may drag on, and there are seasonal highs and lows to deal with, while bills keep coming in.

Fortunately, there are ways to deal with cashflow problems, whatever their causes. Find out more about Cashflow Finance for mortgage advisors.

Growth Finance for mortgage advisors

As soon as your property sales business has found its feet, you will probably be thinking about growth. Large-scale finance can be required if you have plans such as taking on more staff, and especially if you are planning on acquiring a competitor.

Growth Finance is structured to help support this growth and can provide upfront cash which will be repaid once your business has started to enjoy the growth you planned. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history. Find out more about Growth Finance for mortgage advisors.

Helping mortgage advisors deal with professional indemnity costs

Dealing with large sums of money may make professional indemnity insurance essential. This can be a substantial cost, which must be provided before you start working with clients

Fortunately, there are a number of ways to provide for the costs. Find out more about professional indemnity solutions for mortgage advisors.

Tax Loans for mortgage advisors

As a mortgage advisor, you may face large quarterly VAT or annual tax demands. These can cause problems with cash flow, particularly when they fall at the same time as other costs.

Tax Loans help you to spread the cost of your tax demands into affordable regular monthly payments. These can be easier to budget for and help you offer better control of your cash flow. They can also help you avoid issues with HMRC, with the potential penalties and professional liabilities that may entail.

See how a Tax Loan can mean better control of cash flow for mortgage professionals with fixed monthly payments.

Dealing with problems

Even the best run businesses can run into financial difficulties. A cash flow problem can be triggered by a downturn in the property sector and discovering that you cannot meet your immediate commitments could mean that problem escalates frighteningly quickly.

At Rangewell, we know the solutions which can help your business deal with this kind of challenge.

Even if the problem already exists, and you have a damaged credit history or CCjs, we know the lenders which can help.

Find out more about finance for mortgage advisors facing financial difficulties.

How we help mortgage advisors capitalise their business

At Rangewell, we know the lenders who can offer the most competitive rates for businesses throughout the property sector. We know the lenders who can offer the most competitive rates for all types of finance, including Professional Loans, Unsecured and Secured Loans. As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and innovative funding solutions.

Whether your finance need is straightforward, or you actually require a more complicated ‘Jigsaw’ funding plan made up of a combination of products, we can work with you to find the answers that are right for you and your plans for the future.

Simply call to get our expertise working for you.