A Finance Broker Can Be Your Advocate

by 5th of May, 2019

I suspect that one of the most frustrating things for a business owner looking to source finance to purchase or run their business, is dealing with the banks. It’s a bit like the worst thing about travelling is the travelling . . . . getting to the destination is the hard part, once you’re there, it’s all ok & you can get on with what you planned in the first place. In the case of a business owner; making stuff, doing stuff or selling stuff!

The number one question is where to even start? Which bank, which branch, which banker, which product?

Do I need security? Can I borrow unsecured? What products do I need? How much will it cost? Can I afford it? What does it all even mean for me as a business owner? What if things don’t go to plan . . . could I lose my house?

What happens when one bank says “no” . . . does that mean all the banks will say no? Will I need to go to a private lender?

You’re thinking; Oh lord, what should I do, I really just want to run my business!

The reality is that you can either put-up-with it, you can fight your way through the system, you can get frustrated with all the forms & the jargon or you can mandate someone else to do it all for you. That’s where a finance broker comes into play.

As a broker, my role is to navigate the myriad obstacles for you, to understand new policies & keep you up-to-date with the best products for your business. I will provide you with ongoing support to ensure that your bank is offering you the best products, terms & interest rates in the market.

When you’re running your business; whether that’s manufacturing widgets, serving awesome coffee or designing the latest app, my business is to make financing your business easier.

So how do you know if a broker is a good broker?

First, we’ll spend time to listen & understand your business. We’ll want to meet you & see what you’re about. We won’t rush you & we will happily explain anything you don’t understand. We will research your industry & we’ll understand the products; whether it’s refinancing your home loan toaccess extra capital or arranging the lease financing on a bespoke piece of new equipment manufactured in Italy.

Second, we’ll be across the various products available from different lenders. If one lender can’t meet all your needs, we will know to recommend your core business through, potentially, a major bank whilst your equipment financing might be better suited to a specialist lender.

Third, we’ll understand finance & how the broader economy can impact your business. To be fair, brokers aren’t economists nor do we have crystal balls. What we should be, is interested in what the economists are predicting. We should have a view on what the market is likely to do & be able to discuss the best options for you. A great broker will have a network of contacts in the financial markets who can keep them informed about the most recent forecasts for interest rates & the economy in general. This information can then be translated into plain English for your benefit.

Finally, we’ll care! We’ll care like your business is our business. We will go the extra mile, make the extra call, research the latest options so that you are always ahead of the curve. A good broker will stay with you & be your intermediary when dealing with the banks.

In practical terms, we’ll help you prepare your business plan. We’ll write your credit proposal & we’ll meet with the banker to negotiate the terms of your accounts. When your account is up for its annual review we’ll look at where the market is at; is it a good time to renegotiate rates, is a fixed rate loan ready to be refinanced, does your equipment also need to be refinanced? We’ll discuss your plans for the next 6-12 months & look to see if there are any financing requirements you need to start working on now so you don’t get caught out with a cash-flow issue down the track.

We can work directly with your bank on your behalf to review your relationship, renegotiate rates & terms or prepare a proposal that you can present to the bank if that is the best option. Then every few years, we can review your business financing to ensure that you’re with the right bank offering the right products.

At Clear Options Finance we have all the right skills & most importantly we care about your business & your success. Your business is our business.