Why Is It Better To Use A Lending Broker For Short-Term Business Cash Needs?
Lending Brokers Bring Lower Fees For Short-term Business Cash Clients
Clients looking to grow their business and improve or maintain healthy cash flow are always looking for a quick, easy way to secure short-term business cash to facilitate these endeavors. Examples of a few types of situations that business owners need short-term business cash are the construction companies that are taking on new projects. Or the retail store that have a slow seasonality and are looking to maintain until the next boom, to a mom and pop liquor store that is behind on payments to vendors because they stocked up on inventory for a busy season that didn’t see the typical success and need short-term business cash help until the inventory thins out. These people are not experts in the field of lending, they are experts in running their business.
Here is why business owners should use a broker for their short-term cash needs:
- A lending broker has the industry knowledge and speaks with these private equity companies on a daily basis.
- Each lender has different criteria for loaning business short-term cash and this can be difficult to navigate or frustrating for a client. They may have been denied several times but only because they have been working with a company that may have a great rate but too difficult of requirements to qualify.
- Each time a client applies to a new company, they may have to re-apply which means time not running the business and more time filling out paperwork. With a broker, you typically fill out one application and that is sufficient to receive multiple offers.
- There are several premium private equity lenders that only work with brokers. They may not have an internal sales team, only an underwriting team that facilitates the brokers. By not working with a broker, the client may be limiting themselves.
- There is an assumption that going directly to a direct lender will save the client money. The thinking is that direct means fewer commissions tacked on to the loan. While this is great in theory it doesn’t work well in reality. The direct lender has a sales team in which they pay the commission to for finding and facilitating the loan just as if a broker were to bring a deal directly to that equity partners underwriter.
Confirm Capital Is A Lending Broker
Confirm Capital is a broker for the best and most competitive lenders for short-term business cash. Our portfolio of working capital loans, lines of credit, invoice factoring and equipment financing make us a leader in the business funding space. As a leading lending broker, with deep relationships with our private equity lenders, we are known for getting our clients the most competitive loan available. Our goal is to get our clients back to focusing on the growing what matters most, profit for their business.