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Benefits of working with an asset finance broker

Written by Paul Hansen on Monday, 06 September 2021. Posted in Finance

We get it. Asset finance is an important decision made by any business owner, as it’s usually a crucial investment whether it’s a start-up or a business looking to grow.

Benefits of working with an asset finance broker

We get it. Asset finance is an important decision made by any business owner, as it’s usually a crucial investment whether it’s a start-up or a business looking to grow. You know what’s right for your business, so why would you consider getting somebody else to look at your finance options? 

Using a broker does have its benefits. They should have the appropriate skillset, an understanding of the market and the lenders’ products, and as a result, find the solution that suits your business the most. 

First of all, what is an asset finance broker?

An asset finance broker will assist the customer, who is looking to purchase an asset, to find the right lender(s) based on their specific requirements. They will explore the market, identifying the most ideal solutions before presenting these to the client while advising on certain criteria which is relevant to their circumstances.

Some charge their customers fees directly, while others will work off commission where no upfront costs are included for their service.

 Let’s take a look at some advantages of using a broker:

They can find the right solution

We all love a good deal. That usually means finding what you’re looking for, at the most competitive price. Brokers work with a panel of lenders and will do the heavy lifting, exploring the market for a lender whose products fulfil your business needs. Another option is to approach a lender directly, although you should take into account that they may not offer the most competitive products on the market.

So, using a broker offers a more neutral party, whose interests serve your business to ensure you get the right deal for you. Then, perhaps, you return to them for further asset finance requirements in the future.

They are asset finance experts

Brokers’ are usually highly experienced when it comes to asset finance; they’ve worked with lenders for a long time. Their expertise and understanding of the lenders criteria and products will help them identify the most suitable lenders for your business.

They can save you time

Time is a business owners most valuable commodity. It is increasingly common for the modern-day business owner to outsource this task to a broker so they can focus on their day-to-day business operations. This can be to the advantage of the business owner; the broker, with their knowledge of the lenders products and criteria should be able to navigate through this process more efficiently and quickly than a standard individual.

However, do what makes you comfortable

A broker may find solutions which you didn’t even consider, and perhaps help you move forward in ways you wouldn’t have imagined. However, as mentioned already, you know what’s right for your business and you should operate however you’re comfortable. If you opt to go without (a broker), be sure to shop around thoroughly, learn as much as you can about each lenders’ products and navigate a strategy that works for you. Good luck!

Disclosure:

Hitachi Capital (UK) PLC is a lender and also offers credit broking services on a non advised basis from a selected panel of third party lenders. We may charge an arrangement fee and / or receive a commission from the third party lender.

About the Author

Paul Hansen

Paul Hansen

Paul has headed up Sales and Marketing for Hitachi Capital Franchise Finance since January 2018, playing a key part of the integration of Franchise Finance into Hitachi Capital (UK) PLC.

Paul has worked with franchise brands for over 20 years.  Having worked in financial services since the early 1990’s, Paul is a well-known face within the UK Finance and Franchise industries, attending, supporting and speaking at many industry events and conferences each year. 

If you’re interested in learning more about us, Telephone: 01844 355 575  E-mail: fundingteam@franchisefinance.co.uk

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