Power of partnerships: How much should your commercial finance broker be telling you

When it comes to working with a commercial finance broker, it’s best to find an advisor you can work well with. This not only helps boost confidence but it's a great opportunity to develop a partnership to refer back to when the initial finance is secured. This enables other unique opportunities to develop your business further when needing to secure additional finance or needing to reapply to get better rates.

When working with a commercial finance broker, you need to be prepared to talk about the following:

• Income

• Expenses

• Monthly cash flow

You’ll need to be fully transparent about your strengths and weaknesses within your business to be able to secure the finance you need.

What should your commercial finance broker tell you about?

Your commercial finance broker should be transparent with you at every step of the process. If they’re not or you are in doubt, you should find someone else.

Financial advisors should tell you:

• Fees: A broker must tell you all the fees associated with them before accepting you as a client, this includes ongoing fees. However, some advisors might charge for a package and others may charge by the hour. It’ll certainly vary depending on the services you are looking for.

• The services that are on offer: Brokers can tell you what is on offer but cannot advise which one is best for you.

• Which sector do they specialise in A lot of brokers take on a lot of clients because they focus on a wide range of specialities from personal to commercial loans. You’d be better off finding a specialist to get the best deals on the market.

• Whether they are tied into a lender: This financial advisor works on behalf of a third party and they should be transparent when it comes to selling you their services.

• Similar clientele: This should be a given but with specialist advisors, it may be the case that all the broker's clients are from a similar background and have managed comparable portfolios.

Depending on your requirements, you can be in regular contact with your commercial finance broker and it is advised to speak with them at least once a year. One of the main issues is the lack of communication in a partnership, so setting the boundary at the beginning is a good idea.

At KnightsRow

We are completely transparent and can help you with every step of the process when applying for finance. Our access to an exclusive network of lenders will enable you to secure the right finance for you. Find out more here.