Why is using a Finance Broker good for business.
By Heston Ward, First Commercial Finance Ltd
© Copyright 2002
Date: 23/12/2002
For many years, banks and conventional lending institutions
have been able to maintain a governing control over business
finance but in more recent times, certainly during the last
five years, new choices have become readily available, which
have never existed before.
One of those is the availability of money through non-traditional
lending sources and the massive expansion of the 'Sub-Prime'
lending market since the early nineties. This might be compared
to a department store that carries everything, rather than to
several specialist stores offering one particular product line
to which the supply is controlled and the price is inflated.
In other words, a good finance broker can provide many choices
from a variety of lenders who all want to operate in a different
market place and with varying types of equipment and funding
structures.
Every business has five major components, which must work together
in order to function effectively. These are: Personnel, Equipment,
Premises, Product & Services and finally, the most vital 'Capital'
- without cash resources, no organisation can continue to exist,
'Capital is the 'Lifeblood'.
For example, if equipment or vehicles are required, the right
finance broker should provide a range of lease and purchase
options. If premises are sought, you should have a full range
of secured loans and commercial mortgage facilities available
to you but most importantly, if a business needs capital, you
should have access to a wide range of finance and lines of credit.
Each and every component of the business structure grows and
wanes throughout its development, the only consistent factor
is the growing need for capital. From the strongest economy,
to the worst recessions, capital will always be a prime resource
- more personnel and stock, motor vehicles and equipment, stock
and premises, the demand on capital in a growing business is
insatiable.
Talking to a good finance broker will save you both time and
money. Consider the huge amount of time alone that would be
spent researching and presenting your financial proposals. Banks
and conventional lending institutions lend on specific and inflexible
criteria and generally, to those who do not need the money.
Many financial proposals are turned down because they are packaged
and presented in the wrong way, and even presented to the wrong
lending organisation - leading people to think that their deal
is non-fundable.
Whether you are looking for Asset Finance, a loan for a Leasehold
Retail Business, Property development funding or finance to
improve your existing business cash-flow, it is important to
approach the right lender.
So remember, selecting the right people to help you raise funding
for your venture can be as important as buying the right business.
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