Insights for businesses

When exploring the world of business finance, you’ll have undoubtedly come across advertisements and maybe even received direct contact from a finance broker.

At first glance, businesses may be sceptical of the benefits of enlisting a finance broker for a given venture. But, with so many advantages that aren’t immediately apparent, we’d encourage you to consider your options carefully.

So, if you’re thinking of working with a finance broker, here are five reasons why you should.


What is a finance broker?

Firstly, we must address the two main questions businesses should rightfully ask when exploring their business finance options: what is a finance broker, in the first place, and what does a finance broker do?

Finance brokers fill a number of roles. Primarily, brokers are in place to help their clients secure favourable funding for business ventures. Business finance brokers are often referred to as commercial finance brokers and they come equipped with a slew of additional skills like financial planning, negotiation, and networking to name a few.


Why use a finance broker: top five reasons


1. Saving time

Time savings are by far one of the most important advantages to working with a finance broker. Negotiating deals from several lenders is a time consuming process. Without expert knowledge in the field and a keen eye for the important details, this process becomes even more laborious.

Partnering with a finance broker removes all the time-intensive stages of the ordeal. Working on your behalf, a finance broker will be responsible for handling all the administrative tasks involved with securing funding, allowing you to focus more on the day-to-day operations of your business.

2. Access to more lenders and rates

Finance brokers, due to their large networks with lenders and underwriters, are often able to access a much wider range of providers and rates that often aren’t available to consumers.

Due to specialised software, connections deep within lending companies, and the leverage of strong relationships, finance brokers can often source much more advantageous deals from places that you would not find on the highstreet.

Business owners looking at tablet

3. Sector/geographical knowledge

Sometimes, finance brokers will pride themselves on having particular knowledge and expertise within certain geographical locations, or market sectors.

This can mean that partnering with a broker who specialises in your business sector will yield even greater benefits to cost and time savings. These brokers will be able to point you in the right direction depending on the industry you operate.

For example, if you’re a construction firm looking to finance some new machinery, enlisting the help of a finance broker with a penchant for asset finance will mean a much deeper knowledge of the challenges and opportunities within that sector. This enables brokers to offer more tailored solutions to align with your business goals.

4. Better negotiation skills

Unless you’re an expert salesperson, in the majority of cases, a finance broker will have a much more authoritative position to negotiate on financing packages when working on your behalf.

Their business finance knowledge allows them to help you get the right solution for your needs, clarifying any technical jargon and advocating on your behalf.

5. Industry qualifications

Finance brokers are FCA registered and are sometimes even members of industry bodies such as the National Association of Commercial Finance Brokers (NACFB).

These organisations ensure that every broker within them operates under a set of industry standards. This means that, when you side with a broker that demonstrates these standards, you can be assured that your business is in good hands.


Helping brokers, helping you

Aldermore’s specialist team works with business finance brokers across the UK. Not only does this help secure the most optimal packages for customers, it helps customers reap the rewards of having the best package possible.

If you’re a broker and would like to hear more about our rates, or to learn more about Aldermore’s intermediary team, contact us today.

Subject to status. Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it.