Business loan – Broker or Lender?

by Nigel Garner MBM Capital

Statistics show that on average 50 percent of businesses will fail within their first four years after encountering irreparable financial difficulty.

Often the first port of call business owners will turn to when facing initial cash flow problems is high street lenders in hopes that they can receive a business loan to see them through this period. However, this type of bank loan comes with a ‘Catch 22’ in that you must be able to prove that you don’t necessarily need this money. As a result, business owners find dealing with these high street lenders to be extremely problematic and time-consuming. Even if they are able to eventually be approved, it may take the bank weeks, even months to finalise everything. At this point, it could be too late, and the loan wouldn’t cover the necessary costs. This is where the next layer of alternative lenders comes into play, becoming a much more suitable and advantageous finance provider.
To help you better understand the benefits associated with using this type of finance broker we have compiled a comprehensive guide below.
Arguably, the biggest advantage finance brokers have over high street lenders is the wide range of financing options available to them. With a bank, you will find that they are often only able to offer you a direct and non-negotiable loan without access to the wider market. Alternately, with brokers, you will find that they are much more committed to working on finding you the best deal for your business. They are able to network with a wide range of finance providers giving you as many financial options as possible.
As aforementioned, one of the biggest issues with high street lenders can be the time they take to assess, approve and finalise your loan. This can be extremely frustrating if you are in a position where you feel your business could benefit from a more immediate cash influx particularly if it is a cash flow issue. But with brokers, they are much more efficient at working on a timescale to suit your needs and if necessary they can ensure you receive your loan within a matter of days. They also can work to your needs if it is something such as a cash flow issue and you simply require a short-term loan that you wish to repay in the near future.
Due to their extensive range of finance providers, brokers are also able to find you loans that suit your repayment timescale and have affordable and realistic interest rates.
The biggest issue with any loan from a high street lender will more often than not be the extortionate interest rates which will make you question if the loan is even worth it in the long term.
Brokers are much more understanding when it comes to financial loans, their job is to help you achieve the best outcome possible. They understand your business and will want to help you succeed in finding you the best available lender. Banks, on the other hand, struggle to elicit this same level of care as most of the time whoever you speak to will be looking to hit targets and won’t share your concerns.
MBM Capital are FCA authorised partners with over 70 lenders’ providing a wealth of funding support to business from Start-Up to PLC. Sourcing suitable funding at the appropriate rate and helping your business grow. From asset finance for acquisitions to cashflow / invoice finance and loans, MBM provides the key to unlock and fulfil your business’ potential….now and for the future.

MBM Capital offer flexible finance solutions to suit your business and would love to discuss your needs to show how we can help give your business a quick cash injection. Contact us by calling us on 0345 680 1895.