Many business owning merchants have asked us this question and the answer is simple. Using a business loan broker is far better than going direct to a lender because you get the best deal using a broker no matter what the industry is. When you buy airline tickets chances are you bought them through a broker because they found you the best deal. The same goes for business loans.

The Difference

Business loan brokers get paid by the lender for their services. That means that a business loan brokerage is going to do everything they can to find you the lowest interest loan because it’s the easiest to close. A broker knows if they present the lowest interest rate with the best term structure then they are going to get the deal. That should put merchants at ease knowing they have the right person on the job hunting for the best possible deal for them.

If a business owner goes directly to a lender to apply for a business loan then they are limited to the loans that particular lender offers. The lender is going to tell you that it’s the best offer there is because they are pushing their product. What matters to that lender is closing the deal on their loan product. What matters to a broker is closing the deal on the best possible loan for your business.

The Benefits

Not only does a business loan broker benefit a business by finding them the best deal but they also use buying power. A good business loan brokerage will have well performing portfolios of business with multiple lending companies. That can be used as leverage to get a loan funded for a business who otherwise would not qualify for a loan.

Example: A business owner with 590 credit applies for a business loan through Advance Smart. They don’t qualify for premier pricing because their credit score isn’t 600 or higher. Advance Smart funds $400,000.00 a month with this lender and their portfolio performs well. The lender will make an exception and approve the loan because Advance Smart’s overall portfolio makes it happen.

Closing Thought

It is always better to use a business loan broker to find merchants the best possible loan options. Don’t get stuck choosing between a couple options. When you talk to a business loan brokerage make sure they offer the following types of business loans so you know you are going to get the best deal possible

•SBA Loans
•Bridge Loans
•Unsecured and secured loans
•Factoring and purchase order financing
•Merchant cash advances
•Equipment leasing

That is a proper portfolio of business loan options. Take advantage of business loan brokers. A penny saved is a penny earned and a penny you aren’t paying interest on. Use the savings to grow your business not someone else’s. Thank you.

Author's Bio: 

Advance Smart funds large and small business loans across the United States and Canada.