This is our first post here.
I wanted to take this opportunity to share why we chose to start this venture as a small business broker rather than as a direct lender, as we had the chance to do either.
First, as a broker, we can provide our clients access to a wide selection of best-in-class business financing solutions.
Unlike banks and direct lenders obligated to fit their one line of financing products into every need, such restrictions do not limit our recommendations.
This freedom of choice allows us to offer our clients the most adapted, competitive financing solution for their needs.
The case for Small Business Loan Brokers
But the decision was not only industry-related. Personal experience also influenced us.
When I parted with my prior employer a couple of years ago and I needed to buy health insurance, I had two choices:
- Identify every insurance company that offered health coverage, understand the limits and terms of their policies, compare those terms with those from other providers, cross reference terms where they didn’t match, hope not to miss anything that could be detrimental, and then compare pricing, or
- Find an experienced health insurance broker that I could trust and who understood my needs, and let her recommend the coverage that best fitted. Indeed, the assumptions here were that the broker would know the key industry players, would understand the variances in policy terms, and could explain them to me where needed.
It didn’t make sense to invest the time required to do this properly on my own in order to make the informed decision that I needed to make, so I eliminated option #1.
Instead, I went about finding someone who, besides the characteristics listed in option #2 above, could point out the essential facts to me, highlight the key differences, and explain the terms where necessary, so that I could get the right policy at the right price, expeditiously.
Insurance providers and brokers work with these issues all day, every day. The rest of us don’t. It would be unrealistic to think that we can make better decisions on our own.
I quickly found such a broker online. She was knowledgeable and professional and provided me with the information I needed. I got my health insurance coverage through her and moved on to the other activities that required me to be involved.
At the same time, my life insurance coverage with my employer expired. In this case, as I already had a relationship with a Life Insurance broker, I simply emailed him that I needed to restart coverage.
He called me, asked me a few questions to update my information, and promptly identified and recommended the right solution.
It took but a few minutes. Again, a knowledgeable, trustworthy broker allowed me to make an informed decision, do so expeditiously, and move on to my other activities.
A few months later, I needed a new car. I wondered whether I could use the same approach. I checked online for car leasing brokers, found three of them, quickly connected with each, and selected one based on the same criteria.
He understood my needs, explained the terms, contrasted the pertinent conditions, and provided me with a few leasing quotes. I was able to select one promptly. He had the car that we wanted delivered to our home. The agreement’s terms and conditions were precisely those we had discussed. As a bonus, I didn’t have to go through the “I have to speak to my manager” back and forth with a sales representative at a dealership.
It was all around a very positive experience.
All these experiences truly happened as written.
Why is all this relevant?
Where to Get Small Business Loans
How many times do you expect to borrow money for your business?
Enough to make learning all about it a full-time activity? Of course not.
A part-time activity, perhaps? Of course not, again.
As a business owner, you are then left with two options that are not un-similar to my choices above to make an educated decision for your business,
Either you learn everything that business loan brokers like us know about business financing, after having participated in thousands of such transactions, or you need to find a trusted small business loan broker and rely on them. And, expect an all-around positive experience.
This is where BorrowPartner comes in.