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Best Business Loan Brokers
Top-rated business loan brokers — FAQs
What other ways can I get money?
Lenders outside banks are accessible to the small business community. Many internet lenders are expanding their customer base and offering competitive rates to small companies.
Online lenders may be more willing to provide credit to startups or firms with spotty credit histories since their operating expenses are lower than those of traditional brick-and-mortar banks, however, the interest rates they charge usually reflect this.
- Make use of a business loan exchange
A marketplace for company loans simplifies the often time-consuming task of researching and selecting a lender. You submit a simple loan application, and the marketplace utilises its proprietary technology to find suitable lending partners for you.
While some markets actively assist you in submitting your information to small business lenders in order to get possible loan offers, others only forward your information to their partners. These markets do not usually charge the borrower a fee as a business loan broker would.
Although you may not get the same degree of personalised attention as you would with a broker, a business loan marketplace might be a viable choice for gaining access to capital more quickly.
- Use direct lender applications
You may submit an application to a simple online lender or work with a bank to apply for an SBA loan, but you also have the option of applying directly to individual lenders.
A business loan broker isn’t necessary for well-established companies with excellent credit and stable financials, and doing so will save the company the cost of the broker’s service.
The same holds true whether you already have a working connection with a lender or know for sure that they are the one you want to use.
How do I find the best broker for my business?
A qualified broker for business loans will understand your specific financing requirements, have access to a large pool of lenders, and have extensive industry knowledge. Since brokers do not need to be licenced and are not subject to government inspection, it is in the client’s best interest to learn as much as possible about their background and education.
Some questions to ask a broker to see whether they are a good match for your company are as follows:
- When I apply to a bank, how many people will view it? A good broker will have access to a wide range of lenders and will shop your loan application around to get you the most competitive rate.
- How does it work in practice? You should know what to expect from a broker and how they do business before signing on the dotted line. Make it clear from the start whether you want someone to do things like fill out loan applications on your behalf.
- How long does the typical funding process take? The broker’s lender network and the borrower’s timeline may affect the total closing time. If you’re in a hurry, it’s important that the broker you work with has connections to rapid business loan providers.
- Do you see a greater return on investment when dealing with certain banks? It’s important to verify that your broker is working for your best interests and not only to earn a commission.
- How long do I have to make a decision after receiving a loan offer? A broker should allow you some time to think about an offer before asking for a response, usually a few days. If your broker is pressuring you to make a quick choice, you should go elsewhere.
- How do you implement pricing? A broker’s fee structure and the cost of their services should be made clear up front. Loan brokers who refuse to provide this information or who demand payment up front should be avoided at all costs.
- Do you give out my personal details to anybody else? Before deciding to engage with a broker, be sure your information will be secure. When asked, a broker must explain how they will use the personal information they collect on a business loan application.
What are warning signs from a business loan broker?
Unfortunately, not all brokers that specialise in loans to small businesses can be trusted. Keep an eye out for these warning signs when you do your broker comparison research:
❌ Guarantees the loan’s approval. No broker can assure you that you will get a loan, and no honest broker would ever promise you that. Any broker or lender that claims they can ensure clearance should be avoided.
❌ Has no interest in your credit history. In order to find a suitable loan, brokers will look into your credit history. If a broker promises you a loan without checking your credit, run the other way.
❌ Has a dearth of accessible means of communication. A broker’s contact information, including a phone number, an email address, a physical location, and a website, should be easily accessible. If you have a hard time finding details on the broker, you should go elsewhere.
❌ No testimonials or recommendations can be found. If you inquire, a broker should be able to give a list of company owners they have supported in the past, along with feedback and references. A major red flag is raised if there are no online testimonials or if the broker refuses to offer this information.
When should I use a business loan broker?
When looking for and qualifying for small company capital, a business loan broker may provide individualised guidance. If you’re a startup searching for your first business loan or a company in need of niche finance like a commercial real estate loan, dealing with a broker may be worth your time.
A company loan broker might be useful if you:
- Are not interested in taking the effort to shop around for several loan providers.
- You want a one-on-one connection with a financial expert who is familiar with your situation and can negotiate better terms for you.
- Need assistance applying for loans and guidance in navigating the financial process in general.
- Have never applied for a loan before but now want to start a company.
- Need a unique kind of funding, such as commercial real estate loans, Small Business Administration loans, or loans for buying an existing company.
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