A finance lender is a company or financial institution that provides a funding source for businesses. The provision of funds is done so on the agreement of a specific repayment period where interest and/or fees are added to the total amount of money being loaned.
There are a broad number of reasons why finance might be required. It could be to purchase new business assets, equipment or machinery, to boost cashflow for completing growth initiatives, for employing new staff or for purchasing a new commercial property or extending the existing facility.
Many businesses will already have financial agreements in place with a bank or lending company. The challenge they will face though is when the agreement comes to an end, but the business still needs access to funding. At this stage a new lender will need to be found which can often be a headache in itself. A typical route will be a quick online search but with this you have no understanding of what the company is like to deal with, others will prefer to ask for a recommendation. The most important element is to ensure that the lender has an excellent reputation and has been trading for a number of years.
As a business that deals with lenders daily, we know how tricky it can be to find the right one. Here are our top reasons as to why using a finance broker to find the most suitable lender is so important:
Independence – you get a fully independent service and impartial advice; the broker can undertake a whole of market approach and can recommend a number of solutions.
Time saving – a broker can complete all of the fact finding on your behalf and then assist with the application process. This will save time and ultimately just require 1 application to be submitted.
One contact – working with a broker means that they can form the relationship with the lender, removing the hassle of having to chase for updates. Often you will get a dedicated account manager who will manage the whole process and keep you updated every step of the way.
Cost savings – A broker won’t charge any upfront fees, they will work with you to understand exactly what you require, assist with the application and match you with the right lender.
Finally, it is vitally important when seeking business finance that you fully understand the loan agreement, what it entails, along with any relevant penalty clauses. A broker can translate this into jargon free simplicity, offering full transparency.
The team at NGI Finance have over 30 years’ experience with matching businesses to the right lenders. Whether you need advice on a new finance agreement and would like to understand how you can move to a different lender, our team will be able to help.
To find out more please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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