The Top Five Reasons to Use a Finance Broker
In today’s ever-changing financial landscape, it is essential to have a trusted financial partner to help navigate the constant changes in bank policy, interest rate rises and differing credit appetite among lenders.
In the following article, we’ve outlined five reasons why you should engage a commercial or residential finance broker to assist with your home loan, business financing needs, commercial property purchase, equipment or asset finance or even self-managed super fund lending.
The Top Five Reasons to Engage a Finance Broker
1. Finance brokers work for you
Having someone in your corner is vital when navigating the complex residential or commercial finance world.
You may have a great relationship with your bank or relationship manager. However, at the end of the day, these people work for the bank, and their ultimate allegiance lies with their employer.
Bankers need to act in the best interest of their bank to be adequately remunerated, which almost always means they are not incentivised to provide you with the best possible interest rate or let you know that you could probably get a better deal at one of their competitors down the road.
They don’t work for you; they work for their bank and are bound by them in terms of what they can and can’t offer you as a customer.
On the other hand, commercial and residential finance brokers work for you, have your best interest at heart, and are remunerated accordingly.
2. It’s a finance broker's job to be across all lenders
A finance broker is well aware of the options within the industry and determines which one best fits your unique situation. Just because your friend or colleague got a great deal with one particular bank or lender, it doesn’t mean that you will as well.
We all have unique situations, and each bank has its own policies and appetite when it comes to assessing eligible income, the industry you operate in, the particular asset class you may be purchasing or your geographical location.
With a finance broker’s help, you can navigate this increasingly complex environment and get the best possible deal on the market.
3. Finance broking services are free
In almost all cases, commercial or residential finance broking services are free.
Although finance brokers are engaged by and work for their clients, their services are paid for by the bank by way of commission for referring the transaction to them.
Banks are happy to pay these fees as finance broker’s effectively play the role of a banker, but instead of only working for one bank, brokers have access to many and can assist the client in finding the bank or lender that best suits them.
In addition to the above, finance brokers are also bound by the “best interests duty”, meaning they are bound by law to act in the best interests of their clients.
4. Finance Brokers are small business owners
Most finance brokers are small business owners, meaning they are there to support you for the long haul. When partnering with a finance broker, you’re entering a financial relationship with someone who can be with you for life if you choose.
You’ll no longer need to explain your business or personal situation to a new banker or relationship manager every six months as your broker is invested for the long term.
Finance brokers work hard to understand your business and personal situation and strive to bridge the gap between you and the bank so that everything runs smoothly and your experience is as easy and carefree as it can be when dealing with a bank.
Because your broker is with you throughout your financial journey, they can stay across all the changes to your situation and any upcoming projects you wish to pursue.
They will stay across any changes to your current lender’s policy that may impact you and can work proactively to find a solution if the change is adverse. This means you don’t need to lose your trusted financial partner if you need to change banks at any stage throughout your life.
Your broker is there to stay and ensure you’re always looked after and have the best possible financing arrangements in the market for your unique situation.
In most cases, you’ll have your broker’s mobile number and can call them any time to talk through anything finance related that may be happening in your life. No more 1300 numbers or waiting on hold; your broker can support you anytime.
5. Access to multiple lenders and finance options to achieve your desired outcome
Have you ever been told that your current lender couldn’t do something, only to realise months later that it could have been done at another financier?
Finance brokers have access to almost all funders on the market, and it is their job to know the in’s and out’s of each bank’s specific policies, what they can and can’t do and what each bank or lender is good at to ensure that they get the best possible outcome for their client every time.
Finance brokers make possible what their clients had previously thought impossible through the use of their vast industry knowledge and knowing who the right people to talk to are at each financier.
Credit appetite differs vastly from lender to lender. By having a competent commercial or residential finance broker on your side, you can rest assured that they will find the solution if it exists.
Rival Finance - The One-Stop Shop for all Financing Needs
Depending on the level of competency, most finance brokers offer a one-stop shop for all your financing needs.
Firms such as Rival Finance in Brisbane offer a wide range of services and specialise in many forms of finance, such as:
- Home Loans,
- Commercial Finance,
- Equipment and Asset Finance,
- Agricultural and Farm Finance,
- Health and Medical Services Financing
- and even Self-Managed Super Fund Finance.
This is extremely important for business owners who may have a relationship manager who looks after all of their commercial finance, including the finance on their warehouse or office space, their working capital lines or their business acquisition finance.
However, when they look to their banker for help with a home loan or a self-managed super fund loan, a banker would either need to refer them to someone else who isn’t familiar with the client's situation or, as is the case for many banks with self-managed super fund lending, not be able to assist them at all.
Brokers take the hassle out of dealing with multiple departments and people within the bank and use their industry connections and knowledge of the financial landscape to put you in touch with the right lender and person within that organisation. They will organise the funding you or your family member needs on your behalf.
Using a broker also allows you to separate your personal and business finances by utilising different banks while simultaneously removing the hassle of dealing with two entities.
Brokers offer the benefit of all funders in the market whilst providing you with the simplicity and consistency of dealing with one trusted financial partner.
Rival Finance offers commercial and residential finance broking services and can assist with all levels of financing. Reach out today to experience the Rival difference.