The global credit crunch can cause difficulties for some small to medium businesses, so it is advisable for customers to look at their business loans and the opportunities that exist to save money. With interest rates falling, Finlease recommend them to evaluate the current loan situation and take a financial health check.
Finlease suggest engaging a specialist finance broker, who is focussed on the needs of small to medium businesses. Specialised finance broking businesses make house calls, so the customers do not need to leave their workplaces or offices.
A skilled finance broker can take a better look at the current loan commitments and analyse issues such as available cash flow. Finance brokers can advise on loan alternatives that can save money if a transfusion of funds is needed.
A well established, reputable finance broker should have knowledge of prevailing lending conditions and be able to access financial solutions from over a range of lenders. So, a good finance broker should be able to spread the loans of their customers and avoid ‘financial constipation’ with any one lender.
Finance brokers should also act as advocates in representing their customers’ case to the financiers/lenders. They should be able to advise customers from where they should source the funds.
Finlease note that one of the challenges that small to medium businesses face is lack of time to ‘shop around’ for the optimum finance arrangements. Just like sourcing the supply of raw material, money should be obtained at the right price, of the right quality and for funds to be as accessible as possible.
Credit is becoming hard to come by, so the service of a skilled finance broker who has a solid track record with the financial institutions is imperative. Customers need to ensure they have the right loan structures in place, with regard to rates, loan terms, flexibility, special conditions and the securities.
It also pays not to have all the loans with the one lender. The financial health check can analyse any situation that can stunt business growth. By utilising a range of financiers, a capable finance broker should provide customers with a series of good relationships.
Naturally, good relationships are those that last the distance. A good broking firm should have robust, long lasting relationships with their clients, arranging finance for their machinery, property, motor cars and specialised finance tools.
For many of these long term relationships, the financial broker essentially operates as the client’s private bank, with the added benefit that the account manager would not change every two years and without one institution holding all the cards.