Businesses have faced many challenges over the past few years, and there are bound to be more as we continue to navigate changes within our businesses and the wider market.
In this article, we will explore the role of commercial brokers and how they can assist businesses through challenging times.
1. Navigate the changing lending environment
In recent years, The Banking and Finance Industry has been subjected to enquiry after enquiry, culminating in the Royal Commission.
COVID-19 also impacted many businesses, which has, in turn, affected their ability to secure funding to grow their business.
Banks are conducting much deeper due diligence when assessing finance applications, and with the increased level of bank scrutiny, it can be challenging for businesses to keep up with and fully understand what is required to secure funding.
The role of a commercial broker is to assist businesses to better understand the changing lending environment and generate good outcomes for their clients.
2. Provide access to the entire market
These days there are a number of alternative financial institutions (banks/lenders) businesses can secure funding from, as well as a variety of loan structures to explore.
Commercial brokers (generally) have access to the entire market and understand the best loan structure for the business’s funding requirements.
Ledge has strong relationships with key decision-makers from major banks to boutique lenders to ensure a seamless process and a good outcome.
3. Mitigate the client’s risk
Commercial brokers understand financial risk and will negotiate security, pricing, and covenants that are fair to both the borrower and the bank.
As a commercial broker, Ledge will explore the market for the client’s banking and finance needs. This process often results in improved enquiries outcomes, including:
- Tripartite Banking Relationship;
- Price & Structure;
- Terms & Conditions;
- Covenants: both Financial and Reporting; and
- Security, Guarantee Requirements & LVR Security
- Price & Structure;
- Terms & Conditions;
4. Understand the client’s business
Commercial brokers can listen to the key personnel within the business, learn their goals and visions, understand the business’s financials, and package a range of finance solutions suited to the business’ needs.
From the outset, Ledge takes a holistic approach to banking and finance by taking time to understand your business’s strengths and weaknesses, providing you and your bankers with a measured financial approach.
5. Take care of the entire process
Commercial brokers will handle the entire process, from application to settlement, removing stress so business owners can focus on other aspects of the business.
At Ledge, we create a tripartite relationship between the client, the lender and ourselves, ensuring transparent communication between all key stakeholders.
6. Ongoing support for the client
Commercial finance brokers provide ongoing support for their clients, whether it’s:
- Continuing to answer client queries;
- Providing support post finance approval on any details of their existing loan;
- Creating B2B contacts to help grow their business;
- Being there to assist with any queries the client may have or
- Utilising strategic partners’ services where required.
When partnering with a commercial broker, you have one contact point for all your banking and finance needs and someone who will be by your side for the long haul.
They will play an integral part in the growth of your business and integrate with your management team, accountants, lawyers and any other key stakeholders associated with your business.
How Ledge can ensure your business is ‘fit’ for finance
At Ledge, we create a platform where everything is considered and measured to deliver the best possible outcome for your business.
If your business requires funding, it’s important to be proactive and engage with a commercial broker who can pre-empt any potential issues with the lender’s facilities, especially in the current market.
If you would like assistance with your next finance requirement, get in touch with our team here.
