THE VALUE OF USING A BROKER

WARNING: The following is likely change your perspective on Brokers.

WHY?

First, If you are a business owner and need outside financing- your natural inclination is to head to your local bank and see if you can get approved. You're jazzed up, looking to lock in a loan at an exceptional rate.

Whether you need inventory, equipment, capital to cover payroll, money to hire, marketing dollars, capital to purchase assets, or you simply want a nest egg- YOUR BEST bet is to head to the bank FIRST.

Ok, now you're at the bank sitting across from your personal banker and he/she has reviewed your financials and turns you down for several reasons (low monthly deposits, no collateral, and sub par credit). Crushed, hopeless, bitter; you storm out wondering how the hell you are going to grow your business when you just can't seem to attain the money necessary to soar past your current level.

NOW is the perfect time to connect with a broker. A trustworthy, credible, and knowledgeable one at that. YES, there are hundreds if not thousands of loan sharks out there just swimming around waiting to rip your pockets apart. I'm not talking about these people. I'm talking about the brokers who value long term relationships. You know, the ones who aren't out to get you approved with a loan product that will ultimately deplete your business cash flow. You're probably thinking right now, "How do I know a good broker when I see one?"

A GOOD BROKER WILL POSSESS THE FOLLOWING:

• Open and Honest Communication through the process. This means you will not be surprised about fees, lenders, closing dates, etc...
• A Strong Network Of Credible Lenders. One of the value propositions a broker provides you with is ACCESS to the relationships that you may not think of nor be able to get yourself. Personally I have access to 100+ lenders who can get deals done quicker than a bank, more effective, and with cheaper fees in some cases. If you go to a bank or lender yourself, you are limited just to that one relationship and when you're told no- you don't have anywhere else to turn.
• Persistent Follow Up. As a broker, our job is to work for you, the business owner, and help you get the best deal possible within the shortest time-frame possible. Get with a broker who will check in consistently with the lender(s) who is working on your deal. The best brokers are the ones who can put you at ease with the process. Here's a little golden rule I made up... If you followed up with them initially to build trust, they will follow up with you... saying you've done your job right and created value.
• Product Knowledge. A majority of brokers out there do not have the proper product knowledge to be able to advise you on what product is best for your business based on credit, time in business, monthly/annual revenues, existing loans, and collateral owned (if any). Instead, they(the rookies) will ask for your documents send them off to 20 different lenders and run up your credit inquiries. This is most common with Cash Advances aka Working Capital loans.
• Results Driven. At the end of the day, if you don't have a loan it's either one of tow reasons. 1. You aren't fundable based on several factors listed previously 2. Your broker wasn't savvy enough to find a source who could actually DO the deal, conversely to just saying it.

You can expect to pay a broker a success fee at closing. The lender will most likely pay them off of the origination fee in some cases. Unless you've had a prior fee agreement with your broker, you wouldn't have to pay both the broker and the lender in this case.

REASONS WHY YOU SHOULD CHOOSE A BROKER:

• Saves you a lot of time. Keep working on your business, we'll focus on getting you the funding you need to prosper with that business.
• Brokers are hungry to get a deal done. The right broker will work diligently for you. Time is of the essence for them too.
• Access to relationships. The best brokers have access to lenders, investment bankers, family offices, and Private investors that you wouldn't think of nor know where to find them.
• Availability. Most lenders don't have the time to go back and forth with you during the day. They are busy working on other deal flow too. Your broker is the main point of communication. This makes it easier on both sides (Lender and you).
• Creative Financing. A broker with knowledge about his products and industry can help you see other avenues to getting a deal done. Non-conventional routes.

After reading the above... do you still think Brokers are a waste of space? JUST the middleman? Only another fee involved?

I DIDN'T THINK SO!

When you have questions and need to get a deal done, I urge you to visit www.starcadecapital.com and shoot us a message. We'll be excited and eager to provide you with a solution for your business financing needs.

Onward and Upward,

Joe