Searching for a business loan is a time-consuming process for any business owner. In fact, according to this survey, business owners spent over four full days looking for the right loan.
You might be wondering whether you can pay someone to do the paperwork for you. The truth is, you can.
Many business owners turn to business loan brokers when it comes to securing financing for their business.
Keep reading to learn more about the benefits of working with a business loan broker, when you need one, and when you don’t.
What Does a Business Loan Broker Do?
Business loan brokers act as a middleman to help you find financing for your business.
They’ll take your loan application to a variety of lenders and bring you back potential offers.
They’ll likely also handle repayment of your loan after you accept it. Brokers serve as a point of contact and a resource for information and questions about financing your business.
The Benefits of Working With a Broker
Using a broker can save you time, and possibly money. This is because time is often your most valued resource as a business owner.
Researching and finding the best loan options and then applying for them can take some time. If you’re inexperienced with the lending process, it may take you even longer.
You also may be more vulnerable to predatory lending tactics and may not recognize the best deal when you see it.
A broker will have years of experience in securing funding for businesses. They’ll have access to more resources than you and the time to look carefully.
They’ll likely have insider knowledge and can find you loan options that you wouldn’t have found on your own. Chances are, they can spot a scammer from a mile away.
For some business owners, having a middleman is important. Using a broker means avoiding dealing directly with a lender.
Your broker can also explain any terms or concepts that you don’t quite understand. If you’re just starting out, it can be useful to learn by working with a broker.
Applying With a Direct Lender
For some businesses, it just makes more sense to apply for your loans directly.
If you’re an established business, have well-documented revenue, or have excellent business plans, you’ll qualify for good rates with business lenders. For you, the cost of a broker might not be worthwhile.
If you have time to research and experience with borrowing, you should consider applying yourself. This is especially true if you have a solid understanding of the lending industry and feel confident that you know what to look for.
Apply Directly Today
If you’ve decided to skip hiring a business loan broker, that’s okay! You can apply directly for a business loan with us.
Visit our frequently asked questions page for more information or contact us directly with any questions you may have. Click here to apply and get started today.