When you’re looking for a business loan, time is of the essence. You’re often looking for a business loan broker who can work with you because they believe in your business objective and deliverable, rather than your credit score. You need a finance broker who can connect small business owners like yourself to lenders willing to loan you money for a commission.
Something so easy, shouldn’t be so hard to find, but it can be tricky and difficult to find when you’re a small business. Banks almost always say no to small business loans unless you have the credit or collateral they want in exchange for the loan. Small-to-midsize enterprise (SME) advisors can put you in contact with online lenders who will move forward with a far more flexible set of criteria for funding your small business loan.
Read on to discover what you need to look for when hiring a small business loan broker and what they can offer you in terms of small business financing. The most important step you take a small business owner is knowing where to go when you need an influx of money, and the informational guide below is a good place to start.
Getting a bank loan when you’re a small business can be challenging. Banks have a lot of requirements, and most don’t like to take risks. If your business is too new or too small, if your credit rating isn’t the greatest or if you have no assets to offer as collateral, the odds are you won’t qualify for funding from a traditional lender.
Online lenders, on the other hand, are much more flexible. Many offer unsecured loans to businesses that have been trading for just six to twelve months. Some are happy to consider businesses with less-than-perfect credit scores (some of these lenders specialize in bad credit loans).
The most important factor for any online lender will be your capacity to repay the loan. As long as you can show steady income, it’s likely that you’ll find a lender through a small business loan broker willing to consider your application.
The first thing you need to do when you’re thinking about hiring a small business loan broker to obtain the financing you need for your business is to understand what they are. You also want to learn more about what services they can provide you. A business loan broker is an expert in finding and guiding you to a short-term business finance solution.
Most of the time, the finance solution provided will fit your business parameter needs. The small business loan expert broker will find you a lender who provides loans that usually range from $5,000 – $300,000. The most important benefit a small business loan expert provides is you don’t need asset security for some of the loans and there’s no penalty for early repayment.
It’s best to hire a business loan broker who you’ve reviewed for other short-term business loan criteria and amounts they provided. You also want a small business loan broker who has experience providing short term business loans to other small business clients across the country. Make sure that the number of short terms loans they’ve approved have been able to maintain a reputable TrustScore too.
Many business loan brokers have a college degree in finance, business, economics, communication, or psychology. But some stellar business loan brokers finished their core education and gained expert financial knowledge and experience along the way. The small business loan broker experts can analyze a financial statement, negotiate a deal and communicate effectively with the business owner and lender.
The result of all of the above can be a lucrative agreement for the small business owner, the lender and the broker who receives a commission. It’s the business broker’s background in accounting and finance that assists the client’s search for targeted financial small business loans. The soft skills of a small business loan broker expert are speaking to large, professional business groups, as well as answering questions with ease and confidence.
Most business loan broker experts have the initiative to go the extra mile to find you the most beneficial and targeted loan for your small business while concurrently being able to make a quick and accurate financial decision for every step of the process.
You want a small business loan broker who has trained and learned financial analysis as well as business networking. Remember its your small business loan broker that finds you the online lenders. Networking is a vital skill they develop so they can benefit their clients with optimum financial rewards.
Many small business loan brokers usually have to meet or obtain certain licenses or certifications on an as-needed basis. Small business loan broker experts can work independently on projects and deals while also obtaining new clients. They will offer their clients asset-based lending or targeted loan opportunities that best fit their small business needs.
The end result for a broker is putting together a client who needs financing with a lender who can loan them money under a formal agreement. Suffice to say they are part communicator, business leader, social networking expert, and expert financial analyst. You want all their roles and skill sets to be working on your behalf for your small business funding needs.
Your next step in hiring a business loan broker is a very important one. You want to be able to count on a finance broker to provide you with accurate information and be able to analyze and evaluate your financial need quickly. The broker’s ability to make a quick decision can open up financial opportunities you never thought possible.
Your SME advisor and business loan broker will be proactive in staying in communication with you. They’ll provide a step-by-step guide you follow when filling out your loan application, and they’ll give you details about how long the process will take and how much funding may be approved.
When you’re looking for the best business loan broker, look no further than Capify. Reach out to Capify for your small business loan needs and they’ll provide you with financial solution that leads to a lucrative financial partnership and business future.
Capify is proud to be celebrating 11 years of partnership with the Australian Finance Industry Association (AFIA) and supporting the sponsorship of the Industry Award.
Each year Capify celebrates the achievement and contribution of an outstanding member through the Professional Broker of the Year Award. The award represents the pinnacle of achievement for Australia’s broker community.
If you’re a small business owner, you require adequate cash flow to suit your needs. Capify takes the stress out of finding suitable small business funding.
At Capify, we know that business owners work hard to build and maintain their business. We believe in protecting that success, which is why we are passionate about sharing stories and insights from inspiring business owners just like you.
Capify works with a range of business partners, from small businesses through to independent finance brokers.
We place a significant value on building long term relationships with our partners and do our very best to customise each partner’s experience so that we can offer the best support.
Products are only available via Capify Brokers and authorised agents.products are only available via Finance Brokers and authorised agents.
These finance specialists can:
Currently, we’re working with partner firms, including Australia’s leading aggregators, associations and trusted corporate brands – they all share our values and put their customers first.
Capify works with a range of partners, from large corporations through to independent finance brokers.
We place a significant value on building long term relationships with our partners and do our very best to customise each partner’s experience so that we can offer the best support. Currently, we’re working with partner firms, including Australia’s leading aggregators, associations and trusted corporate brands – they all share our values and put their customers first.
Benefits to Finance Brokers;
Capify Brokers Partners
A qualified, independent specialist, contracted to undertake specific roles and tasks:
This can include:
Typically a ‘light touch’ and time-limited relationship in which the external broker actively works to make themselves unnecessary. One of the fastest ways to grow your business and generate a constant supply of new leads is to form referral relationships with other local businesses.
So, what kind of companies make great referral partners for finance brokers? This article provides some tips to help you decide and information about the correct way to get set up and running.
Deciding on who to approach
Just about any business can make the right referral partner if they are highly respected within your local community. All it takes is for the proprietor to know his customers well.
However, a referral partnership will be most effective if the partner’s business objectives and customer database align with yours.
To decide what kind of businesses to approach, start by looking at your goals.
Do you want to generate more leads in your existing market?
Are you looking to expand into new markets and different product types?
Are you looking at growing your existing market?
Look at successful businesses that align with your current business focus. If your existing market is mainly business loans, for example, then you might want to approach a reputable local small business or small business channel to form a referral partnership.
One of the best referral partners for your business may also be the local mortgage broker. Many mortgage brokers prefer to specialise in residential loans and property investment lending.
However, our data indicate their customers are likely to want to buy a car within 12 months of changing their mortgage or buying a new home. They are also a good referral source if you service small business lending or vehicle and equipment loans for the self-employed.
If you want to form referral partnerships to find customers outside your usual comfort zone, you may want to consider other local professionals. Financially oriented businesses service customers from all walks of life and many kinds of companies. These professionals may include:
Depending on your business model and location, they could refer enterprises to requiring a wide variety of business loans:
You can always tell your referral partner what type of customers you want them to send through.
However, is that you can service just about any customer like a pro even if you haven’t worked in that area of business before.
Our BDMs are always here to help you work out the right solution for your customer’s needs.
Tips to align with like-minded people
When choosing a referral partner, it’s essential to ensure their customer service standards and business ethics align with yours. To get to know the prospective partner and their business before commencing a relationship:
A referral partnership works best where there is a mutual desire to offer exceptional service to clients that will build both businesses.
Putting a formal Referral Agreement in place will ensure the roles and responsibilities of both parties are clearly defined and help to protect your business from risk.
Want to know more?
Being a Capify Finance Broker means it’s easy to make referral partnerships. If you’d like to know more, talk with your Capify Finance BDM today. Call on 1300 760 930 or Apply Online.
Providing your commercial clients with hassle-free unsecured business finance from $5K -$300K has never been so simple. When you join our broker program you will be assigned a dedicated BDM team member who will help qualify and support your referred business clients, to ensure we find solutions that work in line with their business needs. Our Small Business Loan and Merchant Cash Advance products require minimum paperwork, can be funded in 48 hours and are designed for Australian businesses, with small daily repayments to avoid cash flow problems.
We also provide you daily, weekly and monthly updates on information such as lead statuses, application progress and funded customers to keep you up-to-date on each customer’s journey, while you own the client post settlement. Gain access to our marketing resources, content, exclusive partner offers and professionally designed creatives to help you win new customers and find opportunities in your database. Earn generous commission from a single referral with great rates for new and renewed loans.
For more information on the break down of commission contact our BDM’s directly on 1300 531 587 or if you have an questions you may want to contact our help centre or read our FAQ’s.
Emma – Capify Partnered Broker
As a fintech Capify believes in providing the best technology and platforms for our brokers, that is why we have invested in a trusted third party partner portal customised to meet broker requirements.
When you apply to become a partner you will receive access to our real-time reporting portal that tracks your small business referrals as they come in live and your commissions are online 24/7. You will also have a dedicated BDM who will also provide you regular updates daily on the application progress of your client and be able to assist you with any questions you may have about the portal.
Capify does not lend small business finance to the following Industries:
To apply for a Capify Small Business Loan or a Merchant Cash Advance you must have an active ABN or ACN, have been in business for over 6 months, have a monthly turnover of $10,000, be an Australian Citizen or Permanent Resident and over 18 years of age.
What you will need to apply:
The small business loan approval process is a fast 10 minute application over the phone with one of our experienced lending specialists. Once it goes to our credit department the application can be fully approved in less than 2 hours, funded in 24 hours for a small business loan and 48 hours for our merchant cash advance. (Approval time based on receiving all required documents during the application process).
Once approved the conditional approval will last up to 30 days.
For both Capify’s Small Business Loan and Merchant Cash Advance products the terms vary from 3-12 months.
We don’t use interest rates for our funding solutions, instead Capify offers an agreed total payback amount based on a factor rate associated with risk. This way your client knows up-front the total costs involved, making managing your cash flow simple. The payback amount is also dependent on the type of business operated, the term your client requires, their daily balance, gross monthly sales and credit score.
Our commission payments are paid up front on all successfully funded deals. We pay an agreed percentage of the margin on each deal that you refer. For further clarification, please contact our BDM team directly for a break down on the commission you could potentially earn.
Any client of yours that is funded by Capify, and decides to renew with us means you also generate additional commission, as you own the client throughout the whole process and we respect the hard-won relationships you have with your small business owners.
If you have any questions just go to our help center or FAQ’s.