10:29 AM, 20th March 2019, About 4 years ago
Many years ago, property investors and developers knew their local bank manager and would simply arrange a meeting with them to discuss the various finance options. However, today, bank managers are a virtually extinct species and where they do exist, their knowledge of today’s financial market is very limited.
This has increased the need for experienced Commercial Finance Brokers, in order to fill that gap and to be able to advice on the most appropriate available finance. The 4 main advantages of using a reputable broker are:
Property developers and investors have expertise in many areas, but may not have the knowledge regarding what is available in the commercial finance market. Obtaining the right finance can be a quite a complicated matter due to the myriad of lenders and different products, not to mention the different criteria that each of them have.
Business owners are busy with their day to day activities and can outsource their finance requirements to an experienced broker, thus allowing them more time to manage their own business. Part of a broker’s job is to stay up to date with the market and to establish good working relationships with their panel of lenders.
A good broker will take the time to get to know their clients and their objectives. They offer a one to one service to their clients and won’t take a tick box approach. They are in an ideal position to secure the best and most suitable funding for their clients.
When a client goes directly to a lender, that lender will look to offer one of their own products. When they instruct a broker he will search the market for the most suitable finance on behalf of their client. They will also manage the process from start to finish.
As in any profession there are good, bad and indifferent brokers. It is important to select a reputable broker. A good starting point is to establish whether they are a full member of the National Association of Finance Brokers (NACFB). If they are then they will adhere to their industry-recognised code of practice. Secondly it also worth checking if they are directly authorised by the FCA and have access to the whole of the market, rather than operating through a network with a limited panel of lenders.
If you require assistance with any type of property finance please do not hesitate to contact me and my team using the form below and we will be happy to help.