Finance brokers: 3 questions to ask before you choose your broker
If you’re thinking about getting some finance for equipment, a property or even to fit out a store, office or warehouse there are probably a lot of things on your mind right now.
Not least, “How am I going to pay for this?
If you need to borrow money – and most people do with a big business or property purchase – you might also be wondering:
- Do I go straight to the bank or use a finance broker?
- If I use a broker, which one?
- How can I be sure a particular broker can give me the right advice and financing for my situation?
So, in this two part post, we’ll look at each dilemma:
1. Should I finance through a bank or a finance broker?
It really depends on your situation and needs. There are a lot of factors to take into account that I mention further down and in part two, but at a high level:
- if you have a close personal and business relationship with your current bank – and you’re in a good place financially – they might be able to approve your financing without any problems.
On the other hand a good broker:
- will approach
a number of banks
and financial institutions to make sure you’re getting the best rate and package for your needs. This can save you a lot of research time and money.
- won’t cost you any more
than going direct to a bank. Banks pay brokers for the business. And the interest rate is exactly the same.
2. If I use a finance broker, which one?
My immediate urge is to shout, “Zenith Finance, of course!” However, in the name of objectivity you should make sure that you choose an experienced, trusted company, with a good reputation and knowledgeable team of specialists. No fly-by-nighters!
I think it’s also very important that you like and feel comfortable with your broker. After all, they’re going to be looking after one of the biggest financial outlays you’ll ever make.
So, in the same way you do business with people, companies, real estate agents and local shopkeepers you like and trust, you should feel good about the broker you choose.
Or get in touch with the Zenith team to discuss your financing needs.