Not so very long ago, if you wanted to borrow money, you would go to the bank.
You would chat about your situation with your branch manager and a solution would be worked out. Overdrafts were freely available and loans could be tailored to almost any situation.
Not any more.
Now, all the major banks have centralised the management of small business customers and product offerings have become increasingly standardised.
This total exceeded lending by the major banks during the period, giving challenger and specialist lenders a 55% share of the market.
Navigating the new world
While more choice and competition in the market is undoubtedly a good thing, it is increasingly difficult for small business owners to navigate the market and find the right option for themselves.
A good business finance broker is now an essential part of an entrepreneur's network.
The role of the business finance broker is to assess the financial needs of a business and then identify potential sources of financing that meet those requirements - much like the bank manager of old, but now with more options at their disposal. They can help secure loans, lines of credit, and other forms of financing that are tailored to specific requirements.
A good business finance broker will also provide valuable expertise and guidance throughout the financing process, helping potential borrowers to navigate the lenders' requirements and negotiate favourable terms, often more quickly than a business owner would be able to do on their own.
Here at Productivity Finance, we pride ourselves on our knowledge of the market, the connections we have with the lenders and the relationships we have with our clients.
Please talk to us if you are considering raising finance for business investment or working capital. We are impartial, independent and on your side. Just like your local bank manager used to be!
Image: Editor5807, CC BY 3.0 <https://creativecommons.org/licenses/by/3.0>, via Wikimedia Commons