23 Apr Do Small Businesses Need a Finance Broker?
‘The average age of businesses registered in the UK has declined from 10.7 years in 2000 to 8.5 years by the end of March 2019’, according to the Business Statistics briefing paper from the House of Commons Library published in December 2019. These numbers paint a grim picture of businesses shut down before they could cross the 10 year-mark.
However, the UK government also notes that 96% of all businesses on register happened to be private limited companies since 2004. In fact, 672,890 new companies have been registered during 2018-19 alone.
This is a testament to the fact that the entrepreneurial spirit is alive and thriving in the UK despite the predicted hardships associated with running your own business. The true hallmark of a successful entrepreneur is to work out a plan that not just survives market fluctuations and uncertainties but also takes steps to further the business growth.
That being said, a finance broker can help you tide over the uncertain capital options that you might be in need of, to keep your business afloat. They become all the more essential during tasking times such as the ongoing COVID-19 pandemic.
How can a finance broker help your business?
1. Time: A finance broker works around your time schedule so you don’t need to put a dent in your own schedule. Applying for loans that get reject also leaves a mark on your scores; and a broker makes sure you get it right the first time itself.
2. Market knowledge: Armed with market knowledge, a finance broker helps you compare a variety of options available so that you end up with suitable financial products that fit your requirements. They also help you negotiate the best deal possible, including non-traditional funding options.
3. Legalities and documentation: These are cumbersome but necessary. Apart from telling you what works and what doesn’t, finance brokers also walk you through legalities, documentation on interest rates, and repayment choices.
4. Tailor-made solutions: Having your own finance broker means a professional expert who is working for you and not the lender, thereby ensuring your best interest.
5. Guidance and counsel: Any investment you do is tied to your future and this is where a finance broker’s wise counsel comes in. They help you invest your hard-earned money to gain maximum returns at minimal risks. This keeps your finances and business at the top of the game.
A finance broker adds tremendous value to a business. You can focus on your business, while the broker focuses on your finances and help you avoid risks in future.