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The Role of a Commercial Finance Broker

Creating market clarity and support for businesses
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Commercial Finance BrokerBusinesses have been faced with many challenges over the past few months and there is bound to be more as we continue to navigate through changes within our businesses and the wider market.

In this article we will explore the role of a commercial broker and how they can assist businesses through what are currently unchartered waters.

As businesses are figuring out how to best navigate the impact of COVID-19, estimating their funding needs and taking advantage of government stimulus packages, a commercial broker’s role is to create market clarity and support for these businesses in a number of ways.

  1. Navigate the changing lending environment
  2. Provide access to the entire market
  3. Mitigate the client’s risk
  4. Understand the client’s business and industry
  5. Take care of the entire process
  6. Provide ongoing support for the client

In recent years, The Banking and Finance Industry has been subjected to enquiry after enquiry culminating in the Royal Commission.

More recently, COVID-19 has had an impact on many businesses which has in turn affected their ability to secure funding to grow their business.

Banks are conducting much deeper levels of due diligence when assessing finance applications, for example, businesses are now required to answer questions about how COVID-19 has impacted their business now and into the foreseeable future.

With the increased level of banks scrutiny, it can be challenging for businesses to keep up with, and fully understand what is required to secure funding.

The role of a commercial broker is to assist businesses to better understand the changing lending environment and generate good outcomes for their clients.

2.   Provide access to the entire market

These days there are a number of alternative financial institutions (banks/lenders) businesses can secure funding from, as well as a variety of loan structures to explore.

Commercial brokers (generally) have access to the entire market and understand the best loan structure for the business’s funding requirements.

From major banks to boutique lenders, Ledge has strong relationships with the key decision makers to ensure a seamless process, resulting in a good outcome.

3.   Mitigate the client’s risk

Commercial brokers understand financial risk and will negotiate security, pricing and covenants which are fair to both the borrower and the bank.

As a commercial broker, Ledge will explore the market for the clients banking and finance needs. This process often results in improved enquiries outcomes including:

  • Tripartite Banking Relationship;
  • Price & Structure;
  • Terms & Conditions;
  • Covenants: both Financial and Reporting; and
  • Security, Guarantee Requirements & LVR Security
  • Price & Structure;
  • Terms & Conditions;

4.   Understand the client’s business

Commercial brokers have the ability to listen to the key personnel within the business, get to know their goals and visions, understand the businesses financials and package a range of finance solutions suited to the business’ needs.

From the outset, Ledge takes a holistic approach to the banking and finance process by taking time to understand your business’s strengths and weaknesses, providing you and your bankers with a measured financial approach.

5.   Take care of the entire process

Commercial brokers will take care of the entire process, from application to settlement, taking the stress away from business owners so they can focus on other parts of the business.

At Ledge, we create a tripartite relationship between the client, the lender and ourselves ensuring transparent communication between all key stakeholders involved.

6.   Ongoing support for the client

Commercial finance brokers provide ongoing support for their clients, whether it’s:

  • Continuing to answer client queries;
  • Providing support post finance approval on any details of their existing loan;
  • Creating B2B contact to help grow their business;
  • Being there to assist with any queries the client may have; or
  • Utlising strategic partners services where required.

When partnering with a commercial broker you have one contact point for all of your banking and finance needs and someone who will be by your side for the long haul.

They will play an integral part in the growth of your business and integrate with your management team, accountants, lawyers and any other key stakeholders associated with your business.

How Ledge can ensure your business is ‘fit’ for finance

At Ledge, we create a platform where everything is considered and measured to deliver the best possible outcome for your business.

If your business requires funding, it’s important to be proactive and engage with a commercial broker who can pre-empt any potential issues with the lender’s facilities, especially in the current market.

If you would like assistance with your next finance requirement, or have any queries, contact your Ledge Finance Executive directly or contact us here.

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