Back in the day your relationship with your bank was key to your business.  Branch managers had lending authority and were able to meet all your business needs. Unfortunately those times have changed, your business has a variety of needs and your bank has specific guidelines that may not allow them to help you.  

Benefits of working with a Broker

  1. Shopping for the best rate – When working with a broker, your loan is shopped around to a number of different lenders to ensure you are receiving the best interest rate.
  2. Not all banks are created equal –  Depending on your collateral, your bank may not have a product to met your needs. A loan broker has the ability to find a lender who’s product meets your need.
  3. We advocate for you – Understanding how the banking industry works and being able to speak to their guidelines. A loan broker negotiates and represents your best interests in the process, whereas the banker represents the bank.

Benefits of working with your Bank

  1. Where everybody knows your name – There is a comfort in working a banker or branch manager you’ve know for a long period of time. You already have the relationship and trust.
  2. A penny saved is a penny earned – When working with your bank, they are more likely to reduce certain costs, or waive them completely because of the relationship. Some banks may offer additional discounts depending on your “status” within the bank.
  3. Assembly not required – If you’ve done multiple loans with your bank in the past, it’s possible your loan officer already has your financial documents and has access to your bank statements.  This can save you time when assembling your loan package.

As banks continue to deal with the economic uncertainty, finding financing today means you may need to look outside your bank.  If you are going to work with a broker, talk to your friends and find a referral from someone you know and trust. Interview the brokers who were referred to you and work with one who understands your needs and you feel comfortable working with.