Commercial Broker - Not the Only Business Finance Game in Town
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Are you looking for commercial broker to help with your business finance? If your business is looking at its financial options, whether it's to fund an expansion, invest in new equipment or extend your credit facilities, commercial mortgage brokers are partners that many firms are increasingly turning to.
So what can a commercial broker offer you? And are there other specialists who may be able to help meet your finance needs?
A commercial mortgage broker offers their client a tailored financial solution that is independent of traditional finance sources, such as banks. As well as providing commercial mortgages, they may specialise in leasing and asset finance (also called asset based finance, or ABL), bridging finance, debt factoring and invoice discounting. With this range of services on offer, not just commercial mortgages, they are often referred to as commercial brokers.
Because of the range of options they can offer, and their ability to tailor a solution specifically to you, commercial brokers can look like an appealing way of managing your finance needs. You don't need to get tangled up in the complexities of raising finance yourself. But there are significant draw backs to consider.
Firstly, commercial brokers do not source funds themselves - they bring credit suppliers to you. As a result they are very susceptible to the drying up of credit supply, and may struggle to find the deal you want, especially in today's challenging market. The NACFB (National Association of Commercial Finance Brokers) acknowledged this itself in its 2009 Survey - total funding supplied by its members fell by 60% in 2008/2009, as the bank pulled back on lending.
These tight credit conditions are persisting, and commercial brokers are likely to find it difficult to find you the finance you need at an affordable price.
Secondly, the process of going through an intermediary such as a commercial broker is inevitably time consuming. They will need to understand your requirements, search the available offers on the market, and then put together a package that works for you. If you are looking to raise funds quickly, this could be frustrating.
Thirdly, commercial brokers do charge fees, and the funds they raise will require servicing through debt repayment- once again attracting extra cost in the interest payments. Given that interest payments are only liable to increase this may become an increasingly expensive burden for you.
There is another approach to take that can avoid all these draw backs. SellMyCommercialProperty are commercial property experts, with substantial investment funds available. Our team is experienced in sorting out so called 'sale and rent back' deals, which can release you funds fast. These deals involve a purchase of your commercial premises, for a fair price, which SellMyCommercialProperty will lease back to you, on a long term lease.
This can be done much faster than going through a commercial broker, you are guaranteed to be able to get the finance funds, and there will be no fees. If you contact SellMyCommercialProperty today, we can show you how we can transform your commercial financing needs.