An update from Managing Director Daryl Borden - as seen in the Dingley Dossier
Mortgage brokers have expertise in residential and other property loans. They can also play an important role in helping businesses find and secure commercial and asset finance at competitive rates, by leveraging their network of lending institutions.
With so many lenders and products to choose from, it’s important to get the right business funding mix from the outset. Many brokers have a deep understanding of the commercial sector and the wide range of products available. They’re well placed to identify the most appropriate financing structures for you, based on your type of business and specific needs.
Here are some advantages to having a broker manage your commercial and asset finance.
Managing cash flow
For any business, big or small, good cash flow is vital. You need the financial capacity to meet day-to-day operational costs, particularly at times of growth, or leading into busy periods (such as ordering stock for Christmas).
Mortgage brokers can help with cash flow finance. This is essentially a way for a business to get cash before your customers actually pay. It may be through invoice discounting, which allows a business to access a proportion of your debtors’ unpaid invoices through the lender. It could be through invoice factoring, where the lender takes responsibility for chasing your business’s debts. Or it may be through an unsecured funding facility.
Mixed funding for manufacturing assets
Businesses involved in manufacturing need the right plant and equipment to remain competitive. They also need financial arrangements designed to suit the industry.
Manufacturing equipment may be purchased from offshore vendors or made to order. This could initially require short-term financing arrangements, to be later replaced with longer-term asset funding. Additionally, a manufacturer with specialised equipment will probably need a more long-term solution than a business needing to purchase an asset such as a motor vehicle, or one that needs funds to complete a shop fit-out or to buy a commercial property.
Mortgage brokers can play a crucial role not only in financing your manufacturing assets but in recommending the most appropriate lending facility.
Range and flexibility
With dozens of different lenders in the market, mortgage brokers are in a strong position to compare and find the most competitive commercial and asset finance products.
When necessary, they also have the flexibility to use multiple lending facilities to suit different business purposes. For example, a business may need a chattel mortgage for its plant and equipment, but a finance lease for other assets.
Using a mortgage broker means you have all the available lending options at your fingertips.
One-stop finance
Mortgage brokers do much more than arrange finance for home loans; they’re also an invaluable resource for businesses. Brokers can help to identify and secure commercial and asset funding to enable your growth, while at the same time preserving your operating cash flow. For established businesses, review and restructure of existing funding lines can have substantial benefit.
Your broker can be a one-stop-shop for your financing needs. Contact yours to find out more about how they can help you with commercial and asset finance.
Daryl Borden, Integrity Finance Australia Ph. 03 9511 8883 ACL 392184