April 18, 2023 11:42 AM

how to choose a good finance broker

Securing funding is a vital part of not only covering the day-to-day expenses of running a business but boosting cash flow to take advantage of growth opportunities too. For most SMEs, at least one type of funding is required, and one of the best ways to secure this funding is by working with a finance broker. A good finance broker has an understanding of the challenges that SMEs face in securing finance, has access to a broader range of funding products than the big banks, and they can also help you get the best rates possible. This article outlines how to choose a good finance broker and why they’re best placed to help SMEs secure the capital they need to grow. Keep reading to learn more.

what is a finance broker & what do they do?

According to EY, over two-thirds of SMEs want faster access to capital. A finance broker makes this possible. Finance brokers have specific expertise that enables them to help SMEs secure funding even in complex situations. This expertise is critical, as the capital structure of SMEs often makes it difficult to access funding through traditional channels. Whether you’re simply looking to compare rates and possibly refinance your existing funding or you’re looking for a specific solution, a finance broker will help you throughout the entire application and funding process. 

why you need a good finance broker if you run an SME

Whether your SME has a large book of machinery and equipment or there’s a strong sales pipeline that could later be used to secure trade finance solutions, a finance broker can help business owners and leaders access funding no matter how their capital structure looks. By helping SMEs get access to a range of financing products, SMEs also don’t have to endure the added stress of taking on more debt, sacrificing equity or risking the family home to access another funding facility. 

Some of the key loan products that a finance broker can help SMEs to access, include:

  • Trade Finance: A line of credit, working capital loan or invoice financing to bridge cash flow gaps and get suppliers paid faster.
  • Debtor Finance: A typical loan with the added flexibility of being able to secure it with business assets rather than personal property.
  • Line of Credit: A set amount that can be drawn down to pay for expenses and better manage cash flow.
  • Equipment Finance: Flexible funding solutions to replace and upgrade equipment so that business machinery is always operating at peak efficiency within its lifecycle.
  • Term Loan Finance: Allows applicants to unlock the equity in their residential or commercial property to fund a loan that can be used for refinancing debt, investing in growth opportunities, and improving cash flow management.

how to choose the right finance broker

The right finance broker should take the time to understand how your business is structured and operates. From here, you should be provided with comprehensive information about potential financial products and the risks associated with each product. Further, a good finance broker will make themselves available to speak with you and answer any questions. As an industry that’s built around strong relationships, you should look for a finance broker who not only has solutions for your current business performance but wants to work with you as your business grows. For this reason, you should ask potential brokers how they work and if they have any references or customer case studies to understand not only the funding they could secure but the care they demonstrate in their work too. 

secure the finance your SME needs with moneytech

Accessing funding continues to be a challenge for Australian SMEs, but working with a good finance broker can make all the difference. Moneytech’s brokers are focused on building strong long-term relationships with their customers and work to make sure funding can be made possible, even in the most complex situations. 

With finance facilities from $50,000 up to $2,000,000 (depending on the financial product), Moneytech makes accessing the cash flow required for growth simple and efficient. Whether your business is looking to release capital from customer invoices to cover regular expenses or you want a cash flow boost to fund your next growth phase, we can help. Contact us today, and one of our experts will be in touch to discuss your options.

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This article is for information purposes only and does not constitute financial advice. You should speak to a qualified finance professional about your unique situation before making any decisions about financial products.

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*This information does not take into account your personal objectives, circumstances or needs. Consider its appropriateness to these factors before acting on it. Read the disclosure documents for your selected product or service before deciding whether to purchase them. ABN: 24611393554
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