When looking for a commercial loan in Australia, you have three main options.
You could go to your bank, do the hard work yourself, or employ the help of a broker. While going to the bank may seem like a straightforward option, you might be surprised to learn that you can actually save money by using an experienced broker to help you with your commercial loans. While it can be convenient to work with a bank you have an account with, that doesn’t guarantee you a guaranteed or smooth loan process. Going to the bank will avoid needing to use an intermediary, but most banks divide responsibilities among many different people, which can cause many applications to get stuck in the process. So, let’s take a closer look at commercial loans and how going to a broker can save you money.
Brokers Get Better Rates
Sometimes, this is simply because brokers can access a much wider range of options with a variety of lenders. Most banks will have set rates that don’t budge much. Banks won’t tell you about better deals out there! Additionally, a commercial finance broker also has exclusive access to lenders and deals. Lenders want to get trustworthy loans, and they depend on brokers to bring them. You can benefit from this interdependence of lenders and brokers because using an expert broker can get you better rates and loan terms because they explore every possibility instead of a limited selection.
Brokers Provide More Options
Banks have readymade loan products of their own, which may not necessarily suit your individual needs. But there really is no one-size-fits-all solution when it comes to commercial loans. Brokers have easy access to a panel of lenders with many different loan products. Your broker can get you better options and in less time. Using a broker can take most of the stress out of the process, and you can get bespoke advice throughout, as well as guidance all the way to completion and the paperwork.
Brokers Do Credit Checks
A commercial loan broker will check most of the things as the lender when you apply for a loan because they want to make sure that they can find a loan option suitable for your financial situation. They might run a check on you after seeking your permission. Since bank policies are very straightforward, you won’t find the same level of thorough work when it comes to credit issues. Brokers, however, know that the difference between getting approved and getting rejected depends on your loan application and how it appears. They can identify policy exceptions and negotiate for you.
Brokers Have a Stake
Should you choose a bank, the loan process can stall for long periods of time, mainly because banks have nothing to lose. They don’t have any stake in whether your loan gets approved or not. Banks offer a sense of security, but they often fail to provide a personal feel. Loan brokers in Australia must mandatorily hold a current Australian Credit Licence (ACL) or be a credit representative under a wholesaler licence. They must do everything to serve you well since they want to retain you as a client for the future and also wish to gain referrals from you. Their reputation is on the line. This added interest in making your loan application succeed will have your broker in your corner with your best interests in mind.
Ending Notes
It’s pretty simple. Brokerages have experts who use their knowledge and experience to get you what you want. Their teams usually include ex-bankers with access to numerous sources of finance to help you deal with your requirements. By using a finance broker to do the legwork, you can free up your time, which allows you to work on other aspects of the business. A broker will know the exact path to take and do all the hard work while you can focus your talents elsewhere. It’s also important to note that if you don’t have much experience and knowledge on how to deal with lenders, the guidance of a finance broker is critical. When using their services, you are spending to save.
