We know there are plenty of people out there that don’t think brokers are needed. They can make a few calls and send a few emails to get a bridging loan arranged.
That may be true.
If you are experienced in the market, have contacts in various lenders and know the pitfalls you could be fine.
In these first few weeks of 2017 we have already seen two new lenders come to the market. How many have come and perhaps gone since you last took finance?
As well as the different criteria and the sort of business lender “x” wants to fund, you also need to be aware of HOW they go about their business.
For example, is the interest rolled up, deducted or serviced? Each one will give you a different overall cost of the loan, which really is the most important figure to look at, if you are focusing purely on costs.
The above should give you an idea that calling a broker, preferably Volo FS, is perhaps a good one.
Perhaps it is a question of fees, instead? I have certainly heard it said that a client didn’t want to pay thousands for a broker just to make a few phone calls and send a few emails. This story should put that to bed:
A critical machine in a factory broke down. Production ground to a complete halt – expensive staff were stood doing nothing, urgent products were not being made and orders weren’t being fulfilled. In short the company was now losing money hand over fist.
Fixing this particular issue was outside the in house engineers knowledge, so they had to call in an outside expert.
The expert arrived and spent a few minutes looking at the machine, walking around it, studying it and the problem.
From a tool bag the Expert brought out hammer and made a firm and deliberate tap on a specific portion of the machine’s outer skin.
Immediately it burst back into life, with products once again being made, workers being used and orders able to be sent out of the door.
The company MD was horrified when he saw the invoice – £10,000. How can it be that much, the Expert was asked. All you did was walk around for 10 minutes and hit it with a hammer. I want a breakdown of how you got to that figure.
As asked, the Expert provided a breakdown –
£10.00 to turn up and hit the machine.
£9,990 the Experience to know where to hit it.
I expect you will get the point.
You aren’t necessarily paying the broker to make a couple of calls. You are paying them to get your project or bridging loan funded quickly.
You are paying to have much of the hassle taken away, you are paying to save money in the long run.
The amount of fee we charge, if at all, depends on various factors, which we will discuss with you when we speak.
The one fee that many fear is an up front fee. If you pay it, your broker is “making money” even if you don’t get a loan you want to take, or indeed any offer at all.
We don’t charge upfront fees, so you don’t need to worry about that. If you don’t want the offer we find you, we don’t get paid.
You will be paid on the result of your project, we will only be paid on a results basis too.
So, let’s have a conversation about your project or property you want to buy and see what we can do for you.
No obligation, no cost.