Sourcing the right commercial business loan

Sourcing the right commercial business loan

When you start looking for a commercial business loan, you will find plenty of lenders all happy to offer you advice and promote their own products. They will all offer slightly different products, services and offers and all this information can soon become confusing and overwhelming.

What you need is someone to give you some free independent advice, to help guide you to the right type of finance that will allow you flexibility and control in order to grow your business.

An independent commercial finance professional will also be able to provide you with information and a view on the market. They will also be able to put you in touch with a lender who may offer you a preferential rate or a special offer on the product that you’re interested in. Because of the relationship that the broker has with the lender, you will often find that if you go through a broker you get a better deal than if you had found the lender by yourself.

Because getting the right type of business finance is crucial for the success and future of your business and because it is so tricky understanding exactly what solution is best for your business, it is vital to get good advice.

How brokers can help you

Commercial Finance brokers can work with you to find out which is the best finance solution to suit your needs, they will also be able to demonstrate which loans offer you the best value, such as a simple business overdraft or a fixed term business loan. They will also be able to explain how the modern asset based lending solutions work and their benefits.

The modern asset based lending solutions include:

  • Invoice Factoring
  • Invoice Discounting
  • Asset Finance
  • Credit protection

How to work with a broker

First you need to find a commercial finance broker, most brokers advertise on the web these days, so a quick browse on the web should provide you with plenty of options.

Once you have found a broker that you like the look of, make contact with the broker, and discuss your needs with them. Make sure they take time to fully understand how your organisation works and its current situation. The broker will then put together a tailored finance solution that suits your needs and your business. The broker will then be able to put you in touch with potential lenders and will then work with you and the lender to finalise the package.

If at any point your situation changes don’t hesitate to discuss this with the broker to ensure that the intended product still meets all of your needs.

Alternative finance options

Once the broker has fully understood your situation and needs they may suggest alternative finance options such as Invoice Factoring and InvoiceDiscounting. These methods offer flexible and cost effective ways to borrow money which still keeps you in control and doesn’t require you to offer up any assets as security.

Invoice factoring and discounting work by releasing the cash that is tied up in your unpaid invoices often with 24 hours of you raising them, instead of you having to wait 30-90 days for the money. Just imagine what your business could do if it was paid for its products and services as soon as the invoice was created!

For further information regarding business loans please contact our advice team on 0800 597 4757 or apply online using the form opposite.