Business Loan Broker (Australian SME Specialist)
Let our business finance brokers find loans to fit your needs. It’s free to compare, with no credit score impact.
$50000
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How a Lend business loan broker can help you
Choice of lenders
Our brokers can help you access business loans from a wide range of specialist Australian lenders.
What does a business loan broker do?
A business loan broker is a lending specialist who helps you find and apply for a business loan. They work on behalf of businesses to access loans and rates from multiple lenders.
They’re used by business owners who need finance, but don’t have the time or specialist expertise to find a loan on their own.
If you decide to work with a business loan broker, here’s a summary of what they will do for you:
How a finannce broker can help your business
Why use a business loan broker?
They’ll save you time and effort
Working with a business loan broker can save you a lot of time. If you decide to go it alone, it could take days of hard work and diligent research to find the business loan that works for you. That’s before you attempt to navigate the lender’s application process. This is rarely a straightforward undertaking.
They’ll help you fully explore your options
A business loan broker will run you through the various standard and non-standard finance options that may be available to your business. Ultimately the most suitable option may be one you would never have considered. Your broker will also have access to lenders that do not accept direct applications – i.e. you can only apply through a broker.
They can help you secure a loan
A business loan broker should know which lenders are most likely to accept your application. They can also steer you away from lenders that are likely to turn you down for some reason or other (saving you a black mark on your credit report). They’ll also help you gather your supporting documents and prepare and submit your application, giving you the best chance of success.
You might get a better rate on your small business loan
While some lenders advertise their interest rates (many don’t!), the actual rate you’ll end up paying will depend on lots of things, including how much you need to borrow, the loan term, your credit rating and the risk profile of your business. Not only will a broker help you understand what rate you will actually pay, they will also help you get a better rate by negotiating with lenders and helping you de-risk your application.
You’ll be working with an expert
Just like hiring a solicitor to handle your contracts, or an accountant to manage your tax, working with a business loan broker means engaging a professional with specialist expertise. No matter how financially savvy you are, there’s no way a business owner could be expected to have the bandwidth to understand the commercial lending market in detail and which lenders are currently offering the best deals. A business loan broker has that information at their fingertips.
Why you might not work with a business loan broker
If your business has the in-house capacity to source and negotiate its own finance, you might not need to use a business loan broker. This is particularly true of well-established businesses with strong revenue and profitability, and an impeccable credit history. Pretty much any business lender will offer you finance.
Business finance brokers add most value when there is complexity to be overcome.
If you have an established relationship with a high-quality lender, looking for an alternative with the help of a broker may not be necessary. It’s generally a good idea to shop around either way, but if your current provider is offering competitive rates and outstanding services, throwing the net any wider may not be the best use of your time.
Remember, too, that brokers don’t necessarily have access to all of the lenders in the market. Each has a panel of lenders they work with. Even if you’re working with a broker, it’s a good idea to understand what lenders they don’t work with and factor those into your thinking too.
How to identify a reliable business loan broker
1. They have a broad and deep panel of lenders
If your broker tells you straight away that they know the right lender, you should be a little suspicious. They should be contacting multiple lenders and analysing all your options to find the one that is best for you and your business.
2. They tell you the cons as well as the pros
A broker should give you an impartial view of the merits of the lenders you’re considering. For example, one loan might be available to you within 48 hours, but have a higher interest rate. Another might be cost less but have restrictive conditions, such as not allowing you to offer credit terms to your customers. Your broker should make sure you know exactly what you’re signing up for.
3. They’re transparent about their commission
You need to know up front how your broker is remunerated. Do they charge a flat fee, or a percentage of the amount you borrow? Or do they earn money purely from lender commission.
Some brokers receive commission from the lender rather than charging you a fee for their services. This is fine, as long as they’re absolutely transparent about how much they’ll get, and whether they’ll receive higher fees from certain lenders.
Once you have this information you can decide whether they’re acting in your best interests. If they’re not willing to share it, you may have reason to worry.
4. They provide a business address and phone number
A reputable broker will have a legitimate business address and phone number where you can reach them – not just a website. If they don’t, and you can’t verify their identity, you might want to look elsewhere.
5. They have a strong privacy policy
If they don’t have a clear privacy policy that protects your interests, you might end up with your details sold and your phone ringing off the hook with marketing calls. Nobody wants that.
6. They pay attention to your credit rating
Your credit rating is one of the key measures lenders will use to decide whether they’ll lend to you, how much you can borrow and how much interest you’ll pay.
If your rating is low, your broker may still be able to find you a business loan, but you can expect your interest rate to be higher and the terms and conditions to be stricter. A reputable broker will ask questions about your credit rating and discuss your options with you.
It’s also worth noting that a broker can check your credit rating without marking it. Each time your credit file is marked (an enquiry made) your credit score will go down. Ask your broker about this.
7. They have great references
You want a reputable business loan broker with expertise and connections. Your personal networks and social media are a great source of information. Look for reviews (ideally recommendations on LinkedIn or similar so you’ll have social proof that it’s a legitimate review, rather than a testimonial on the broker’s website that could be made up). Or best of all, ask other business owners about their experiences and who they recommend (and why).
8. They give you time to make up your mind
Above all, you shouldn’t feel pressure to make a decision right away. Your broker might want to close a deal quickly in order to get their commission, but you have every right to make sure that the loan really is right for you. They should encourage you to ask questions and analyse the documents so you’ll know exactly what you’re getting.