Business Mortgage Brokers are experts in tailoring finance solutions suitable for every single client that comes their way, whether they are entrepreneurs, business owners and self-employed borrowers. Every single business has their own specifications and needs, and manoeuvring the world of loans that best suits your needs may be a difficult business.
As banks never advertise their business loan interest rates, or the amounts they’re willing to lend out, going to a bank directly can lead vulnerable to unknowingly being charged high fees with equally high interest rates for a loan that might not even suit your individual business needs.
One of the easiest ways to secure yourself against that is to hire a business mortgage broker to help you manage your application process. We are experts at our business and industry, which can only help you make informed decisions on the best choices you have available.
Be wary about going straight to the bank
Not only do banks not advertise their business loan interest rates and the amount they are willing to lend you, the business bank managers are from an entirely different sector of the bank. Unlike other bank employees, business bank managers are measured by their budget, and their return on equity.
What this means for you is that they will never tell you if you can get a better deal somewhere else if you sit down in negotiation with them. As they are most concerned about the bank’s profits, they will take advantage of you whenever they can. If you are in a difficult situation, a loyal customer, or don’t know the industry rates, they may very well take the advantage and overcharge you. Understandably, a lot of borrowers lose out on better deals when they deal with banks directly.
Commercial lenders look at business loan applications like ROI. Business mortgage brokers can protect you from taken advantage of by knowing your circumstances and negotiating strongly for your needs.
Assess your needs professionally
Financing a commercial property is difficult, especially if you’re unfamiliar with business loans.
Business mortgage brokers don’t only keep your application process simple by handling all your paperwork for you, saving you time to let you focus on your business, we also properly assess your financial needs.
Many entrepreneurs are striving to find financial solutions that get them through difficult times, or get an extra boost to reach their next business milestone. In a consultation, a business mortgage broker can get a personalised understanding of your needs and goals and assess it alongside your recent financials. By doing so, we can understand what situation your business is in, and plot a path to your next business goal.
This is especially true if your business may be struggling with a bad credit rating, or low supporting documentation. Business loans aren’t governed by the National Consumer Credit Protection Act 2009 (NCCP Act), so with good negotiation, there are solutions to get banks to lend to a business that has bad credit ratings or low doc.
Getting approval isn’t the end-goal with the benefits a business mortgage broker can provide you. Depending on your business, many entrepreneurs and business owners have seasonal income requirements that change your financial needs over short stretches of time. As your business grows, your financial needs change alongside them. Keeping a good relationship with a trusted and experienced business mortgage broker can only be a great step for your business.
Experts on banks and negotiation
As stated before, business mortgage brokers are specialists in our field. By working with a business mortgage broker, you can borrow more at the best interest rates possible by allowing us to help you with choosing the right lender for you.
Experienced mortgage brokers have also built strong ties with relationship managers with several lenders. The very best have written many business loans with these lenders, generating strong negotiation power that helps us further understand what the banks are looking for.
You can get approved the first time with a business mortgage broker to help you highlight the positives of your business while diminishing any negatives you have with the financials and discussion you’ve provided us.
Business Mortgage Broker: What’s required?
Your business mortgage broker will have a little chat about your business – what your milestones and goals are, what you need and looking to achieve, and why you need a loan in the first place. They will also ask for your business and personal financials for the past 2-3 years, including your tax returns and business activity statements (BAS).
Afterwards, your business mortgage broker will finish the rest of the application process.
All you have to do is wait, where they will come back to you with an Indicative Funding Proposal (IFP) to confirm the interest rate and terms of your loan..
Post from Sharon Lam
Business Psychology Consultant