Let’s face it, you have many things to focus on when running your business and looking for funding can interrupt this. As a young or new business person or homeowner, selecting your ideal finance broker is often difficult and you can easily be taken advantage of. To help you find the best finance broker Adelaide, here are five things you should consider.
List your requirements
Financial brokers must put your interests first in their recommendations. Obviously, you need business loans that suit your needs and with a competitive interest rate. Whether it is an investment property loan or a home loan, a good broker should consider all your requirements when arranging a loan for you. They should also be available for consultation at all times. Ask your potential broker about other credit packages or home loans if you are not content with their recommendations.
Don’t assume that a financial broker will act in your best interests and get you the best deal. In some cases, they may put the commission paid by the lender over your interests. Shop around and ensure you ask about commissions and other kickbacks. Phone other brokers to check what they offer to do and what they charge. Look at other loans online as well to get the best deal.
There are three types of finance brokers; those who don’t charge you a fee, those who charge you a fee or commission and receive a trailing commission/one-off commission from the lender, and those who only charge you a fee and don’t receive any commission from the lender. It is recommended that you try to deal with a finance broker who does not charge you a fee. If you have to pay a fee, the fee should not amount more than 1.5-2% of the loan being arranged.
Check for licensing
Finance brokers must have a license if they are arranging loans covered by the credit law. Beware of brokers and credit providers who are not licensed and are operating illegally in Adelaide. You can check if a broker is registered at asic.gov.au (Search ASIC Registers) or by calling 1300 300 630.
Get a written agreement
The ideal finance broker must give you a quote that; must be in writing, specifies the services being offered, specifies the full amount that will be payable (including charges and fees), and states whether the fee is still payable if you decide not to proceed. Fees could include payments to the lender or credit provider for setting up the loan, broker’s fees/commissions, and any early termination fees. The written agreement should also specify the type of loan arranged for you, the term of the loan, the amount of the loan, and the current interest rate.
Apart from designing the right type of funding for your needs, a finance broker should be able to assist you if you had problems securing funds in the past. The best broker is one who has multiple options at their disposal and isn’t limited to use only one source of funding. The more sources your prospective broker has, the better the chances of getting the most competitive offer.
Finance brokers in Adelaide can offer you a range of loan options. The right broker should help you select a suitable loan and manage the entire process through to settlement.