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To run and grow a business of any scale, you will need financing to succeed. Your own investment capital can only take you so far, and loans or lines of credit are crucial components of paying your cost of doing business while you accrue earnings and net profit. Securing financing can be a difficult process for small businesses since the 2008 credit crisis, but the good news is there is a practical solution: working with a loan broker.

Loan brokers have existed for nearly as long as the finance industry, though their abundance and popularity definitely declined post-credit crisis. Despite the major setback of 2008, commercial loan and financing brokers still fulfill a key role in growth for small businesses. Let’s take a look at what commercial loan brokers do and why you should consider using one to finance your next expansion or growth goal.

Commercial Loan Brokers: An Overview

In brief, a commercial loan broker is a professional who works with businesses to secure the best financing from lenders. Instead of you needing to personally make inquiries to 1,000 different financiers and review a combined 10,000 different lending products, a commercial loan broker shops around for you and finds the best solution. In exchange, the broker collects a fee or percentage of the transaction once the loan is signed, secured and delivered.

Commercial loan brokers already have extensive connections throughout the finance sector and know how best to meet your financing needs with the lending products available. There are, of course, pros and cons to working with a loan broker over checking out the options for yourself.

Benefits of Working With A Commercial Loan Broker 

Save Time And Rapidly Boost Your Growth

Let’s talk about the good news. Using a commercial loan broker is typically the fastest way to secure financing and implement your growth objectives. They will assess your business’ credit and investment potential quickly and present you with a short list of the best options.

Once you choose the product that’s right for you and sign off, you will receive your funds in your bank account or through an established line of credit. All that remains is to keep doing what you do best while expanding your business. The money is going to be there, and it’s likely going to be the best financial product for you hands down. Best of all, you’re not the one searching for a lender and vetting their products, which frees up your time for the more important work of growth and expansion.

Commercial Loan Brokers Are Networking Experts

Should a commercial brokerage help you find a loan or line of credit for your business, they will be with you every step of the way. Throughout your term they will be available to verify your information, make any alterations or changes you need (higher limit, increase loan amount, and so on). Moreover, if you find you need a different type of financial product or launch a new goal or project, they are ready to pivot with you.

Brokers can quickly identify the products that would be the best fit to grow your new venture or support your fledgling business while you find your feet and start your revenue streams flowing. An experienced broker is not only a lending advisor, but also a financial sounding board who can help you plan for the future and grow your business responsibly so it is stable and profitable for years to come.

Drawbacks To Working With A Commercial Loan Broker

Fees & Percentages

You will be paying a small additional percentage or a fee for a loan broker to make your financing arrangements. It’s generally a nominal cost, but it is a business expense you will need to plan for during your decision process. Your cost-benefit analysis should estimate how much time you would spend finding and securing your own financing versus paying a commercial loan broker to handle and/or expedite the process significantly.

The good new is that this cost is paid out of the funds that you receive, rather than out of your pocket. In addition, some brokerages (such as ours) don’t lock you in or require any retainers. We are confident that we offer the best funding solution, and so we invite you to shop around. Our services only give you a more options to chose from, and there is absolutely no risk.

Loan brokers function as matchmakers between borrowers and lenders. If you need money to start up, grow or expand your business, they are a good place to start. There are certain drawbacks to working with a commercial loan broker, but the benefits easily outweigh the costs.  

Establishing a consistent revenue stream through financing is a necessity for many small
businesses, especially in this region. We connect you with lenders best suited to provide the financing you need to grow. Let’s start a conversation today about where your business is prepared to go.