When My Bank Can’t Finance My Request, Why Would I Use a Loan Brokerage?

A broker can be defined as a third-party contractor whose job is to negotiate an equitable agreement between interested parties to a transaction. With such a broad definition, it is not surprising that brokers exist in many, if not most industries. Some of the more common brokers include stock brokers, real estate brokers, business brokers, etc. Loan brokers are no different than any other professional brokerage business.

As intermediaries, loan brokers have played an important part in facilitating alternative business lending sources for centuries due to the many advantages they bring to the table. Some of the most notable advantages are as follows:

Commercial Finance Brokers can secure the most advantageous funding relationships from the contacts they have developed in a competitive market. Competing funding proposals will present the most beneficial funding terms and conditions for the borrower
• Commercial Finance Brokers are knowledgeable of the markets in which they participate. Brokers are instrumental when negotiating funding terms and conditions and the “minefield” of restrictive financial, positive and negative covenants and other funding restrictions.
• Commercial Finance Brokers contacts are incentivized to provide their most advantageous negotiated alternative funding offers with the expectation that the broker will continue providing them opportunities for additional business.
• Commercial Finance Brokers are able to help produce effective loan packages based on the specific information needs of the funding sources.
• Commercial Finance Brokers are able to assist their customers with any issues that arise with the funding relationship.

The most significant benefit of a loan brokerage relationship is that it allows company management to concentrate their time and their core competencies building their business while the broker develops the loan package and sources loan proposals in the most efficient and effective manner.

FinanSource is an independent commercial finance broker dedicated to finding working capital, equipment and real estate financing for its customers. FinanSource works in the background obtaining the financing you need to grow your business while you manage your business. Included in our service is preliminary underwriting work to identify any issues that can be corrected or mitigated to benefit the lending process. Our preliminary underwriting also gives prospective lenders the information they need for quicker evaluation in order to generate serious interest. FinanSource’s success fee is paid from proceeds of the loan that we secure for you, so we don’t get paid until your financing need is satisfied.

“Helping businesses finance success one company at a time.”