Business Loan Consultant vs Loan Broker
Many people ask, what is the point of hiring a business loan consultant when I can apply for a loan on my own? (This often happens before they use our services and they are still not sure what we do). Is it worth hiring a broker for a business loan in Singapore? This is suitable for business owners seeking business loans to finance expansion, working capital needs for cash flow purposes, or equipment upgrades.
What I usually tell them is: “Think of us as PR consultants and we have helped many foreigners apply for their PR status. You can always apply for PR yourself, but the chance of rejection is very high, especially in Singapore. “. where they are receiving adjusted fees ”. We can help because we know what attributes the financiers are considering to approve your loan.
Applying for a commercial loan is an extremely tedious process. In fact, for many small business owners, getting started is an extremely difficult process (especially the first time); because banks can make a lot of requests. Most SME owners don’t know what the bank might be looking for. With more than 10 years of experience in the corporate finance industry, let me clarify the role of a business loan consultant.
Loan Broker
- Broker simply facilitates the loan application process
Business Loan Consultant
- An advisor and long-term business partner
- Handles and ensure smooth loan application process
- Get competitive payment terms and rates
- Improve chances of loan approval
- Access alternative financing options
- Get the right financial tools & products to achieve client’s business long-term goals
Benefits of Engaging a Loan Consultant
Contacts and Network
Working with so many banks and financial institutions in the past allows them (and you) to know which one offers the best deals. Loan brokers know where to find financiers that suit your financing needs.
Expertise and Experience
Aware of the market, including indicative rates and knows when a loan is overpriced. He has knowledge of the common types of collateral offered as security for taking on a loan.
Practical Advice
A good loan broker ALWAYS has a Plan “B” ready and a plethora of alternatives prepared for you just in case; advise you on possible reasons your application is rejected and how to improve on credit standing in future.
Favourable Loan Terms
Have an experienced broker access your case and understand how you can improve your credit record before you even start submitting your loan requests
Handling Small Details
Assisting you with the nitty-gritty of loan packaging, will free you from grinding all by yourself and increase your chances of getting approval for your business loans
Sharing Same Interest
By sharing the same interest, the consultant will try their best to make sure your loan gets approved and will not short-change your application, as their fees are based on this.
What Do Banks Lookout For When Approving Loans?
CREDIT STANDING
A loan broker who does not have a contact number and an office or postal address identified with his brokerage business makes one question the legality of his business or even its existence.
FINANCIAL STANDING
You can ask a broker how much commission he’ll be realizing when he brokers for you. You also have the right to ask about his network of lenders and important details such as the full cost of the loan he is arranging for you.
LIABILITIES
You should not engage a broker whom talks big and able to “guarantee” loan approval. The truth is, no matter how competent, no one can guarantee assured loan approval as the final decision lies with the bank’s credit approver.
Qualities of a Loan Broker
01 PROPER BUSINESS PREMISE
A loan broker who does not have a contact number and an office or postal address identified with his brokerage business makes one question the legality of his business or even its existence.
02 TRANSPARENCY OF DETAILS
You can ask a broker how much commission he’ll be realizing when he brokers for you. You also have the right to ask about his network of lenders and important details such as the full cost of the loan he is arranging for you.
03 NO OVERPROMISES
Beware of brokers who guarantee a loan without checking your credit and financial history. Don’t be blinded by these guarantees. Although there are obvious problems that may weaken your loan application.
