Discover the most frequently asked Business banking questions
What is a business loan broker?
A business loan broker is an agent which will try to find the best business loan, at the best price, for any business which requires his or her service. These business loan brokers are usually - but not always - truly independent and will not be inclined to favour a business loan over another one.
Also, they have been dealing with business loans for a very long time, know pretty much all the providers and products, and are very familiar with the legalese on the loan terms which could put off and confuse even the most serious business types. Therefore, they are much more capable of working out a cheap rate than business owners or directors or eve CFOs who will just spend a fraction of their time studying and reviewing business loans. In fact, business loans are the business of business loan brokers.
Of course, services of business loan brokers come with a fee, but usually, even with that fee on top of the cost of the loan, their customers will find a better deal than if they would have looked for the loan and negotiated it themselves.
However useful the services of business loan brokers might seem, business owners or directors should carefully screen these brokers, by trying to get in touch with their clients, and trying to find out if they are as independent as they claim they are, and how long they have been in business, because these are the keys to the efficiency and usefulness of their services.