Business Loan Broker

Business loan broker is an individual or entity that acts as an intermediary between a borrowing business and a commercial lender. When a business is unable to receive financing from a bank, most of the time they do not know where else to go. Business loan brokers exist to help companies get other forms of financing besides funding from a bank.

Basically, a loan broker is like a middle man. If your business needs funding and you have no idea where to start, a loan broker can be a great asset in your search for capital. Loan brokers typically have a network of a handful of lenders with whom they have established a relationship. The broker knows the lending criteria of each of the funding sources, so when a business looking for capital comes to them, they usually know which lender to direct them to. A business loan broker gets paid in commission, for each deal that closes and the percentage of the deal that they are paid varies from one deal to the next. The borrower is usually happy to pay a broker a fee if a loan is arranged for them. Especially if the business has been previously turned down by other funding sources such as a bank.

onEntrepreneur

onEntrepreneur is an online magazine centered on the world of business, entrepreneurship, finance, marketing, technology and much more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.

Leave a Reply

Your email address will not be published.