Why use a finance broker?

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When the time comes to renew our house, car or other insurances, although we are encouraged to shop around for the most competitive quote we are likely to choose to ask an insurance broker to do it for us because they have the expertise when it comes to the finer details and access to a choice of products. The broker will therefore be able to research the market to which they have access to find the best deal to fit your particular circumstances.

The same principle applies when a business is looking for asset finance.

Your broker will spend time with you to understand your business, its constraints and needs and your plans for its future. Again, your business finance broker will be able to search among finance providers to ensure that you have the right kind of finance for either buying or leasing the equipment you need.

But sourcing the right asset finance is not only about getting you the most competitive price. Repayment terms, initial investment and ensuring the most suitable facility are all considerations that are equally important and are needed to help to keep your business running smoothly. This should include room for development as well as the ability to meet the monthly repayments and keep its cash flow under control.

Additional benefits

Every business is unique, so if your finance broker is part of a large group they will be able to call on someone else within the group who has expertise in a particular business or finance sector if they do not have the experience of that particular issue themselves.

In addition, you will benefit from the buying power of using a broker who belongs to a large group. If, as a whole, the group is placing many millions of pounds worth of business with finance providers each group member is likely to have significant bargaining power when it comes to negotiating repayment terms.

A finance broker is therefore likely to be able to achieve a more favourable deal on your behalf than you might on your own.

While a business could do all the research itself and deal direct with the finance providers, it may not have the knowledge or experience to ask the right questions to be sure that it is the right one for their needs.

Many finance providers are specialists in particular types of finance, such as only for vehicles, or they limit the types of business they will deal with, such as only with limited companies, or business with a defined minimum of turnover.  So it can take an individual business a significant amount of time just to identify the appropriate source of finance even before it gets into the details of negotiating terms and comparing quotes.

In summary, using a finance broker who understands your particular business circumstances is similar to the days when you had a long term relationship with the bank manager at your local branch. They would know you well enough, and had the autonomy, to be able to offer the right kind of finance for your business.  That is now the job of the independent finance broker.

Best of all, as they are paid by the finance company, they will not charge you for their services.