Each month I have shown you how clients have achieved their business funding requirements using a broker.
The majority of business owners will still speak to their bank as their first port of call when a funding requirement is presented. Their admirable loyalty will often come at a financial cost for them as they have not searched the whole of the market.
By using a broker a whole host of funding opportunities can be made available. But what should you look for from a broker in an unregulated market?
The National Association of Commercial Finance Brokers (NACFB) is the UK’s only trade body representing brokers who help small businesses directly by accessing all types of funding across the entire UK lending market.
A not-for-profit organisation set up in 1992, it provides best practices and a code of conduct for its members and patrons.
There are 1,200 members specialising in commercial finance, asset finance and vehicle finance sourcing £1.25bn per month. Each member broker has access to, and detailed information on, more than 100 lenders. Certain lenders are only accessible through the broker channel. The NACFB promotes choice for SMEs (small and medium-sized enterprises) giving them access to the entire UK lending market. They are able to provide clarity on the different lending options available to business owners. In addition to this the NACFB promotes competition between the funders encouraging a fairer deal for the client.
If you think that this sort of approach to funding would help your business and would like a local independent broker to search the market place for your best options the recently launched findSMEfinance website.
The NACFB launched www.findSMEfinance.co.uk, a simple finance-matchmaking website, to help small businesses access funding through an independent broker. The website helps SMEs unlock finance from a broad spectrum of lenders in the UK, making the quest for securing finance a more realistic and achievable task.
l Marcus Grimshaw is the chairman of the NACF Member Services.