If you are considering getting a loan, it's likely that you have heard of an asset finance broker, and you wonder if it makes sense for you to use one.
An asset finance broker is a professional agent or company that assists clients in purchasing assets from a supplier by finding the right lender and helping them procure the asset finance they need. Note that an asset finance broker usually works on behalf of a particular finance provider.
There are asset finance brokers who charge clients directly, while some receive a commission from lenders.
If you want to know more about asset finance brokers, including the pros and cons of working with one, read on as Wealthy You, one of the best mortgage brokers in Sydney, tell you what you need to know about them:
Services Asset Finance Brokers Provide
There are different services asset finance brokers typically offer, including:
- Advising clients on policies that are suitable for their specific circumstances
- Explaining all the important details of different finance arrangements
- Connecting customers and lenders that can meet their needs and preferences
- Negotiating with lenders to get the best deals
Pros and Cons of Hiring a Broker
There are advantages and drawbacks to hiring an asset finance broker. For the benefits, the most obvious is the fact that they bring to the table years of industry expertise. No matter how much you try to learn what you can about these things in a day, week, or month, that would be just a fraction of what seasoned brokers know. They understand the ins and outs of the industry, and that can benefit you greatly.
Aside from that, you won't have to carry the burden of finding a reputable lender and getting a loan for the equipment that you need for your business.
As for the cons, it could be an additional cost to you if the broker you choose charges clients for their services. It's also possible for the broker's interests to be misaligned with yours. If you go with a broker who is not established, there's a risk of the broker not finding the best deal for you.
How to Choose the Best Asset Finance Broker for You
You should not just choose a broker based on a whim. It would do you good to look for these in a broker before you decide to hire them:
Check the broker's page or website to see what their previous clients think of them. If you have friends who have worked with them, it's wise to ask about their experience, too. If the broker doesn't have a good reputation, you should never take the risk. If they have a stellar reputation, that's already a sign that they know what they're doing and that they deliver quality service.
Ask to see the broker's AFS (Australian Financial Services) license. It is a requirement for all brokers, but it's still best to be on the safe side. Anyway, there shouldn't be a problem if they are indeed a licensed broker.
If the broker refuses to disclose the breakdown of their fees, that could be a red flag that there are hidden charges they might not be telling you. You should also know about any potential conflicts of interest. If they are working with specific lenders, they should tell you about it, too.
You should consider utilizing an asset finance broker's services as they can help you find the best asset finance options for you. Their guidance can also help you make informed decisions. Of course, it matters who you work with, so make sure that you do your homework and choose a broker with a solid reputation. Some of the best mortgage brokers offer asset finance broker services, too, like Wealthy You.
Wealthy You is known as the best mortgage broker in Sydney that can also help you find a credit solution for your business. Contact us today to learn more about our solutions!