There will come a time when you will seek capital to help grow your business! It is important to understand that you have options, choices and you decide what, how, when, who, where you receive the capital from.

Options mean what types of capital available to you. Choices refers to programs, what type of capital you want, how refers to amount of capital you need, when refers to when you would like to receive the capital, who refers to which company you want to do business with and where refers to lenders location, ability to service, etc.

In understanding this we have assembled an overview chart of broker vs. direct lender to educate you so the best decision can be reached. Here is why you should consider each:

  1. Options:

Brokers will have multiple lenders for multiple loan products. Multiple lenders mean better bargaining position regarding rates, terms and fees.

Direct Lenders will only have access to their loan programs.  As brokers Altima is consistently able to achieve better terms, rates, etc. for our clients by negotiating one lender against another.

  1. Timeliness:

A brokers ability to quickly place an applicant with the correct lending source based on lenders criteria means quicker funding.

Direct Lenders have to lump everyone into their specific guidelines and if you don’t fit, they cannot provide you with the necessary funds, meaning wasted time. Every lender has a different risk tolerance and appetite. I.e. Construction Vs. Retail, 800 Fico Vs. 520, etc. It’s important to know this for effective and time efficient outcomes. We research lenders loan programs to ensure borrower meets their guidelines for faster funding.

  1. Greater Success:

As stated in Timeliness. Every lender has different guidelines and criteria and not every borrower will fit exactly into that box, so having multiple lenders means a higher success rate of securing funding that matches the borrower needs.

Direct Lenders are limited to their loan programs and guidelines with little ability to expand for varying circumstances.

  1. Relationships:

Great brokers have established relationships that can work in the borrowers favor. Altima has strong long-lasting relationships with its lenders that allows us to make reasonable request and have them granted i.e. extended terms, greater loan amounts than borrower qualifies for, reduced rates just to name a few.

Direct Lenders don’t take the time to know you, so you are another applicant.

  1. Peace of Mind:

In most circumstances when a borrower needs money, they need it by a certain deadline. However; searching for money can be a huge distraction taking focus off of the business. A great broker can address and solve your capital needs, thereby allowing the borrower to focus on what matters. Growing your business!

Altima Business Solutions is a strong funding broker with multiple lending sources. Our compensation is based on getting you funded.  See what we can do for you!

Author:  Andre’ Fox Wilson Sr. “The Banker”, Altima Business Solutions “Empowering You to Focus”

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