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Guide to Choosing a National Finance Broker for Your Business

Your Quick Guide to Choosing a National Finance Broker for Your Business

Looking for a finance broker?

In the good old days, if you needed a loan for your business, all you needed to do was to walk into your nearest bank and avail the required amount. However, those days are long gone. 

Things may be more complicated now. However, many really nice options are now available for businesses that you might not be aware of. One such option is a business finance broker. This person is the modern-day equivalent of a bank’s branch manager who can evaluate the market and look for alternative sources of financing your loan. These are the people who function as an agent for businesses looking to avail a loan and banks and other lenders who can offer the sum amount. They can be the right resource for your business, getting the required financial support at the best terms for a loan.

The question, however, is how to choose a National Finance Broker who gets you the loan but also does it at terms conducive to your business.

If you look for options, you will find thousands of them in the UK. Ranging from one-person firms to multi-employee organisations, the options are plenty. The trick is to choose the one who understands your needs and fulfils them to benefit you. To help you make the best decision, we have collated a list of guidelines to choose a broker that best fits your financial requirements. 

First, let’s look at the three-step strategy to work with a commercial finance broker effectively: 

  1. Share your business details

For any commercial finance broker to lend you the right support and find a suitable loan, you must share your business details with them. Some of the most common details they would want to know include: 

Your business background: The basic information you need to share about your business background would include the legal form such as limited company, unincorporated business or partnership, etc. Besides that, they also want to know about the management team, the main activities of your business, your business premises, assets like machines or equipment your company owns, and all existing financial arrangements like loans or overdrafts. This information will help the broker find a relevant lender that matches your business. 

Repaying the loan: How you would repay the loan is yet another important piece of information they would require. This could include finding out if it can offer any legal charge on the assets owned by your business. If your business is out of cash, the lender is still repaid. Generally, the stronger the security you provide, the cheaper the loan. Regarding asset finance, the only security required in this case is the equipment being financed. 

If you have any county court judgments pending or have any insolvencies connected to the owners, it can impact the availability of the loan. This is referred to as adverse information. However, finance brokers can usually help in such instances as well. 

  1. Evaluate your options

The market provides ample options for you to choose from. If you hire an experienced broker, he can sift the right options for your business and present them to you. These options may include:

  • Bank loans: A traditional bank loan is still one of the most widely available loan options in today’s market. If you manage to get a loan from a bank that is already managing your finances is a great start. You can also explore new loan providers who have entered the market providing commercial loans.
  • Commercial mortgages: Mortgaging is yet another option that you may find attractive. The interest rate will vary depending on factors like your firm’s credit score, the loan-to-value ratio, and the kind of property you own. 
  • Asset financing: This is still considered one of the most appropriate and affordable ways of financing your business equipment and machines. Asset finance is available in different forms, including finance lease or hire purchase. You can review your options and select the one that suits the best for your requirements. If you partner with a broker with access to different financing companies who work solely through brokers can be a good deal. This will increase your chances of getting a loan.
  • Asset refinancing is another form of asset finance under which a firm refinances your existing asset having its equity of ownership. 
  • Vehicle leasing: This is a good option for companies already owning cars, delivery vans, and similar vehicles. 
  • Invoice discounting and factoring: These two forms of financing let companies raise more money through their unpaid invoices to the customers. Your lender will partially pay a certain amount of the value of your invoices right at the beginning. The remaining amount is paid once the customers clear the invoices. This is more suitable for larger firms as several factors must be considered before availing it. 
  1. Check your quotation thoroughly

After weighing all your options, you must be satisfied with the quotation you receive. As a practice, you must check the following: 

Check the total amount, including all extra charges, regular monthly or quarterly payments, etc. The financer usually describes such charges as set-up, administration, documentation, and annual fees. If you opt for asset finance, your financer would want to know the possibility of purchasing the equipment at the end of the contract. 

Always check the terms of the agreement. In the case of asset finance, terms may include conditions regarding how the equipment would be returned or whether it would be through balloon payments, which is a high lump sum amount paid at the end of the term. 

Finding out the details about security requirements is also essential. These include charges over business or the owner’s personal guarantees. 

So, what’s the best way to choose the right broker for getting a loan with bad credit?

Well, it all depends on your business requirements. Every business is different, and so are the requirements. So, it is important to find someone who can fulfil those needs. However, certain pointers can help make a good choice. These include: 

  • Business sector: See if your preferred broker has experience working in your business sector.’/
  • Network: Check how many companies and banks the broker has worked with and what kind of loan they offer. Their services should meet your needs.
  • References: Ask for references. This will give you a fair idea about the clients they have had in the past. 
  • Fees: Always clarify their brokerage fees and whatever additional charges they will levy before signing the contract.
  • Location: Working with a firm or a broker with a local presence is always a good idea
  • Rate of Interest: Checking their rate of interest will give you an idea about how much you would have to repay them.
  • Financial Conduct Authority: Always ensure the Financial Conduct Authority regulates them. It is a prerequisite for certain kinds of financing solutions.

If you are looking for a business loan and want to narrow your search for a finance broker, you can always turn to Loan Broker. is a registered credit broker authorised and regulated by the Financial Conduct Authority. All loan approvals & quotes are subject to lenders’ credit checks and affordability requirements. You can borrow the money if your business meets the lender’s criterion. Click here to apply.

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Representative APR Example

The rate you are offered will depend on your individual circumstances.

All loans are subject to status. The interest rate offered will vary depending on our assessment of your financial circumstances and your chosen loan amount.

Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54


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