Business Meeting

Commercial Loan Broker

Why use a commercial loan broker?

Some swear that you should deal directly with banks because this can save commission fees. However, others are just as adamant that you should use a commercial loan broker instead. Usually, the latter group is correct. There are times when dealing directly can make sense, but for most, a broker will be much easier to deal with.

Dealing directly with a bank works if you already have a long-term relationship with a particular institution and you are sure that you can get a good deal. Even then, though, it's a good idea to shop around to make sure that no one has started to offer better terms than your usual financial institution.

Most will find that it's better to deal with a commercial finance broker. This is partly because it's unusual for a growing company to already have a single bank that it prefers. It is also good because a broker can arrange financing even if a particular bank is unwilling to deal. You just tell the commercial finance broker your situation, cash flow, and other details. He or she will then match you with the bank that is the most likely to not only approve you, but give you good terms.

This extra service level is what you get in exchange for the commercial loan broker commission that is included in the cost of the transaction. As you can see, it isn't a charge for "nothing," but instead, for time-saving expertise. Without a broker, you might have to visit several banks before you can get your loan. Doing that legwork yourself, the slow way, can delay your projects until you are forced to accept an unfavorable loan package. Using a commercial loan broker lets you avoid that possibility.