Why should you use a finance broker?
“70% of businesses that apply directly for finance are turned down” vs
“70% that are put forward by brokers are accepted”
Finance Companies pay brokers to introduce suitable businesses to them. Brokers like me save them time and a considerable amount of money on employing manpower to process unsuitable applications. After all, why would a busy Company Director want to waste their time on fruitless applications?
The average broker acceptance rate is 70%, but good brokers will be even higher. Mine is 84% - let me leverage my experience into success for your business.
A finance broker should be able to take you to a finance company that is a good fit for you and your turnover, credit rating, industry sector and purpose of the loan.
They will also be able to help you present your case and explain any relevant issues that could cause the proposal to be turned down in the underwriting stage.
If you are looking for any type of business finance (either now or in the future) then you are very welcome to call me on 0800 612 5364.
How to get the best out of a broker:
Check out this recent case study
We recently arranged a really good 6-figure loan for a construction company. We managed to get a verbal offer in just day of delivering the required information. This information included:
Once we arranged the finance deal, the Company Director said that the interest rate was a disgrace. He believed that it was far too high at 16%. I had every sympathy(we cannot control market conditions), and I explained with the past failure and the current credit rating that was the best we could do and that it really was a good deal.
He told us that the banks were offering loans at a quarter of this rate, and that he had seen many finance companies offering rates around 5% or 6%.
I tried to explain that his type of loan request was not for the high street banks.
When finance companies offer rates at 5% or 6%, this is aimed at the mythical ‘ideal customer’ - largely an advertising rate put out there in order to attract customers to apply.
This gentleman came back to us about 10 weeks later, and he wanted to move forward. “I have been thinking over the offer and I have decided to take it.” Not so easy.
This led to 3 issues he had not considered:
- When a Finance Company makes an offer, it is only valid for a limited period of time. If it is not taken, the offer is withdrawn. If you go back to them later their current lending criteria could be different. They might be looking to reduce exposure in your industry sector, or they might have reached their risk bracket for riskier cases.
- 2Unfortunately, this individual had applied to several finance companies and banks, and this left behind a credit search footprint each time. When the Underwriters see this, it triggers the question within their minds–‘what do they know that I don’t know? If this loan fails, how will I justify making the loan when I knew that others had turned it down?’
- I had originally gone to the right finance company right off the bat, and I knew their lending criteria at the moment I proposed the client.
I am afraid to say that there was no happy ending. I did secure finance for him, but it was significantly more expensive. If only he had taken the original offer – it would have been a much better deal for him.
You need expertise and guidance. I can help you secure finance, and I am ready and waiting for your call.
I am a very lucky man. I happen to love what I do, so don’t worry about wasting my time - just pick up the telephone and call me on 0800 612 5364.
I look forward to speaking with you,
The note was handwritten by Mother Teresa for Mark's new-born son George.
“Mark really understood what we needed and was very honest and easy to work with. The specialists he introduced us to were of a similar mindset and worked hard to help us. Ten out of ten - highly recommended if you are looking for business finance.”