When you are considering finance in the UK, whether for a business loan, asset purchase or another form of borrowing – navigating the market and choosing the most suitable finance can be complex. That’s where a finance broker can provide significant value.
What is a finance broker?
A finance broker acts as an intermediary between your business and lenders.
As a broker, we work for our clients – not for the lenders we work with; to find tailored funding solutions for your business.
Here’s how:
- We take time to deeply understand your business and your financial situation
- Accessing lending markets which are not available on the high street/you would not find on your own
- Assisting with application paperwork, drawing up a business case to present to lenders on your behalf
- Negotiating with the lender on your behalf, to source the most suitable finance structure
Key benefits of using a Finance Broker
Wider Market Access
As a broker, we have close relationships with our panel of lenders, fostered over the past 30 years of working together. These relationships provide our clients with access to a funding market that is otherwise inaccessible.
Time and Effort Saved
Applying for finance yourself can be very time consuming, comparing multiple products, completing application forms, and dealing with each individual lenders’ unique terms. Working with a broker takes these tasks off your desk, allowing you time to focus on running your business.
Expert Advice and Tailored Solutions
We produce a business case designed to help lenders understand your business in detail. With professional experience, a broker can direct you to the most suitable finance for your business – leading to more approvals.
Better Terms and Potential Cost Savings
With our 30 years of experience, our market knowledge and access to multiple boutique lenders, we have the ability to negotiate better terms on your behalf.
Access to Specialist Lenders & Products
Some lenders and particular product types will only operate via a brokering channel. As such, by going through a broker may provide you the access to finance even if you have been declined by a high street bank.
Support and Compliance
As UK finance brokers, we are regulated by the Financial Conduct Authority (FCA) – ensuring a level of professionalism, transparency and protection for your business finances.
How we as finance brokers work:
Here is a step-by-step outline of how working with a broker typically works in the UK –
Initial Discussion
You meet (or speak) with the broker, we assess your needs, financial situation, and what you are looking to finance.
Market Matching
Matching your requirements to the most suitable lender depending on your unique commercial circumstances.
Application Preparation
As brokers, we help you gather the relevant documentation, preparing the submission for lenders by creating a business case for the finance to help the lender understand your requirements.
Quotation and Negotiation
You receive an offer, and as brokers we may negotiate with lenders on your behalf.
Advice and Recommendation
We explain the terms in layman’s terms, helping you to understand the implications of finance and the impact it will have on your business.
Completion and After-Sales Care
Once finance is approved, we help you to finalise paperwork, and ensure the funds are delivered in a timely manner. Additionally, we are on hand throughout the duration of your finance term. No call centres, just humans who are there to assist you.
How to choose a good finance broker
- Make sure they are FCA regulated
- Ask for their fee structure up front – a good broker will be as transparent as possible with how they get paid
- Check for client references / online reviews
- Ensure they provide clear advice – including the pros and cons of the finance product you are considering
- Make sure you understand their role – they are working for you, not the lender.
- After-approval care – a good broker will be on hand to help you throughout the duration of your finance agreement.
Frequently Asked Questions (FAQs)
Does using a broker cost more money?
Not necessarily. Some brokers charge a fee, while others are paid commission by the lender. Often, they can negotiate better terms on your behalf, and provide you access to competitively priced funding lines which are inaccessible on the high street.
Will using a finance broker slow the application down?
In most cases, using a broker will speed the application process up – due to their relationship with the lender; knowing what they are looking for in an application, and negotiating / liaising with lenders on your behalf in order to come to an approval decision in a timely manner.
Can I still approach lenders directly?
Yes you can, but not all lenders. Most specialist lenders only deal through brokers, as otherwise they would be inundated with applications. In addition, you’ll be doing all of the work yourself.
Does this only apply to business finance?
At Mill Wood Finance, we broker commercial finance. We do not deal with personal finance queries – however much of this advice would likely be relevant for you if you are considering going through a broker for a personal finance application.
Conclusion
In the UK finance market, the role of a commercial finance broker is well established and presents clear benefits. From wider market access, helping you navigate the market with our expertise, time savings, and potential cost savings.
If you’re seeking finance for your business and want to give yourself the best chance for approval, while minimising the time you spend on it, using a professional finance broker is a wise choice.
If you’d like to learn more about how Mill Wood Finance work, get in touch here.
