A business finance broker’s role lies between your business and the institutions that may provide finance for you, such as banks and other lenders. A good broker will help you to find the best asset finance product for your needs, with competitive rates. But with thousands of brokers working in the UK, how do you choose which one to go with? A broker will help you to access finance, but who will help you find a broker?
If you’ve just started looking for a broker and it seems like a bit of a minefield, don’t worry. We have put together five things for you to consider when choosing an asset finance broker who is right for you:
1. How much experience do they have?
Experience in this case isn’t measured just in the number of years a broker has been operating (though this can be useful to know), but also important is exactly what sectors they have experience in. Do they have experience and an understanding of the industry you operate in? Do they have a track record of financing the same equipment you are looking to finance? This can be beneficial in helping a broker to understand the kind of finance you need. You may even be able to find references from their previous customers whose businesses are similar to yours.
2. Do they understand your business?
In the same vein, a good broker will take the time to understand your business – if they don’t, how can they be sure they are providing you with the best possible finance option for your needs? For example, do you have any other financial arrangements, how would you want to make repayments and what could you afford? A broker who knows about your financial situation and what you want to achieve will be better placed to find an asset finance solution that suits you.
3. Are they local?
Depending on your business, it may be important for you to have a locally-based broker. For example, if you only operate on a local scale or run a business that is unique to your particular area, a local broker may understand your business needs better than one based further away.
4. What costs are involved?
Check what fees are to be charged and who is paying them. Make sure you’re aware of them before you agree to anything so that you have a complete picture of what your costs will be.
5. Are you happy with the terms?
What rate of interest does the broker expect to be able to achieve for you? Their estimations will give you a good indication of whether they can provide a financial product you are happy with. There may be other agreement terms you will need to think about, such as whether you will want to purchase your equipment at the end of the contract. Your broker will need to consider this when finding the right financial product for you.
Arkle works with over 150 introducers in the UK, including brokers, consultants, manufacturers, vendors and professionals. If you would like to find out how we could help you to secure the asset finance your business needs, contact us online using the form on the right or call 01933 304899.