What is a finance broker?
A finance broker is a representative for financial services products. They don’t give loans out themselves, but they can help you find the right loan for your needs. In this article we’ll discuss what a finance broker does and how they can help you get the best deal when it comes to loans and financing.
What does a finance broker do?
A finance broker is not a lender, but rather an intermediary between the lender and the customer. They use their expertise to match customers with appropriate lenders, making sure you get the right loan for your needs.
If you’re eligible for a loan, then it’s likely that you’ve already started shopping around for one. You might have even visited a few banks or spoken to a few loan brokers yourself—but if not, don’t worry: it’s never too late!
How finance brokers can help you:
A finance broker will only introduce you to the financial institution that is offering the best interest rate for your unique situation. This ensures that the products you receive are competitive and suit your needs.
A finance broker can help with:
- Car loans
- Asset Finance, for example jet ski finance, motorbike finance, caravan loans or boat loans
- Truck loans and trailer finance
- Personal loans
- Commercial loans
- Farming equipment loans
- Loans for pensioners
- Personal loans for a bad credit rating
- Horse float finance
- Dental finance
- Wedding finance
- Holiday Finance
- Start Up Business Loans
- IVF Loans
- Vehicle repair loans
- Education loans
- Gym equipment financing
- Cosmetic surgery financing
- Car finance pre-approval
When should you use a finance broker?
Before selecting a finance broker it’s important to understand why you should use one. If you have a complicated situation, such as a low credit score, or if you want to refinance a personal loan with better terms than your bank can offer, then it might be worth looking into getting advice from a professional. A good broker will be able to help guide you through the process and find the best loan available for your needs.
If you’re having trouble with your existing broker or need some advice on what type of product would suit your needs then seeking out an expert may be useful. There are many lenders out there who provide funding but not all of them are created equal and finding one that suits all parties can sometimes be tricky especially if they don’t match up with certain requirements such as age brackets or income level limits set by regulators such as ASIC (Australian Securities & Investment Commission).
Choosing a finance broker
Choosing a finance broker is an important decision, as it can have a significant impact on your financial health and well-being. First, you should make sure that the loan broker you choose has a good reputation in the industry. You can check this by looking up their website and social media pages to see what kind of feedback they’ve received from past clients.
Another thing you should consider is the accreditation status of your broker. This will ensure that they are legally allowed to engage in credit activities in Australia, so make sure that your broker is properly licensed before signing any contracts with them!
An ethical finance broker will also protect your credit score throughout the process of applying for a loan by making informal enquiries about your unique situation before submitting your application formally to a lender.
How finance brokers make money
You may be wondering how finance brokers make money. Well, they get paid a commission by the lending institution (typically a bank or other lender). The commission is usually a percentage of the loan amount.
How is a finance broker is different from the bank?
A finance broker can assist you in finding the best loan for your needs and circumstances, including whether you are looking for a car loan or commercial loan. A broker will ensure that you understand the different types of loans available to you and work with you to find the most suitable one for your circumstances.
In most cases, brokers do not charge any fees until after the loan is approved and settled. The amount differs depending on market conditions at time of application. If a broker charges an upfront fee they will tell this either before they start working with you or immediately after taking your details over the phone when discussing what type of loan suits your needs best.
We cover more about choosing a broker vs bank in another article.
Want to chat to a trusted finance broker about your borrowing needs? The team at FLOW Financial would love to help. Get in touch!
