Why Use a Broker?
If you asked me this question while I was employed by the Bank, my answer would have been you don’t, however since leaving the bank and starting my own business, I have learnt there are many reasons to use a broker.
After leaving my employment, the best way to describe moving into the Finance Broking industry was, “for 23 years I have been operating from a Tool Box, but now it is like someone has lifted the shed door” and given me access to a whole new range of Tools (In this industry products).
Some of the reasons I believe it may benefit you to use a broker include,
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A good broker may save you money in the form of actual dollars, by providing options for the best finance structure to suit your personal or business requirements.
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As a broker I have access to a number of lenders, all with different types of products. Therefore you can be provided with more options.
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With so many financial institutions it can take you time to find the best deal. As a broker I can access most of the information quickly and provide you with options. This saves you time to do other things.
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In relation to business/ commercial funding as a broker I can complete a lending proposal and lodge on your behalf (once we have agreed on requirements) and seek the best products to suit these requirements. In some cases with business lending there is room to negotiate, which can be done by the broker if agreed on.
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As a broker I will follow your application from our first contact until settlement and keep you informed. After settlement I will remain your first contact point if you have any queries.
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Generally a broker does not cost you as the client. An upfront and/or trail may be paid by the institution providing the funding.
How do I choose the best product/option for me?
Every person’s personal/ business requirements will vary and I believe before you decide on the best product/option there are some questions you need to ask yourself. Some of these may include,
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What is most important to me, the interest rate (actual cost),
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Flexibility of the facility.
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Fees charged both upfront and/or on going.
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Access, does the financer have a branch were I can talk to people face to face?
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Do I need to have access to a branch or am I happy being able to access the product via the internet etc?
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Do I want security of a fixed rate or am I comfortable with a variable rate that may fluctuate with market conditions?
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One of the most important questions, I believe you need to ask yourself is what are my 1, 3 and 5 year plans or goals? (Your goals can be set over what ever period you choose). It is likely these may change over time but may provide you with some direction which product /option you decide on now.
These are only a few of the questions that may help you with your final decision.
Summary:
Obtaining Finance can be one of the biggest decisions you will make.
It is important to ensure you select the best product/option to suit your personal and business needs. By using an experienced broker I can help provide you with different products/options that may best suit your requirements.
Remember a Finance Broker has access to numerous product/options through a number of financiers.
Generally there is no cost to use a finance broker; they may even be able to save you time and money; however there may be times when you will require me to act under a fee for service.
