What to know About SME Business Loan Consultant Broker In Singapore

It’s not enough for you to know the advantages of using a broker. It’s also crucial to figure out which people have your interest in mind, even though they, too, have established working relationships with lenders and banks.

While there are reliable, professional loan brokers out there, there are also brokers who give the industry a bad name. Here is a quick list of “red flags” to watch for.

No Contact Information or Proper Business Premises

A broker for business loans in Singapore that doesn’t have a working contact number and an office or postal address identified with his brokerage firm is questioning the legality of his profession or even its presence.

Your objective is to ensure that it does not operate as a fly-by-night loan broker. Such brokers are usually one-man setups that work from home.

Lack of Transparency

You could ask a broker how much commission he’s going to carry out when he’s brokering for you. You also have the freedom to ask about his lender network and the essential details, like the full cost of the loan he arranges for you.

If he cannot give you precise answers or appears to lack transparency regarding this information, it’s better to be more suspicious about his competence.

Exaggerated Promises

Beware of a broker who guarantees that you can get a business loan in Singapore without checking your financial history and credit history. Don’t be deceived by these guarantees. Promising the moon and the stars despite obvious issues that might stall your loan application (i.e., imperfect credit standing, unstable cash flow, or lack of acceptable collateral, little or no track record) raises doubts about its credibility.

You should not engage a broker who talks big and can “guarantee” the approval of the loan. The truth is, no matter how qualified a broker is, no one can guarantee guaranteed loan approval, as the decision lies with the bank’s lender of approval.

No third party, such as a broker, is entitled to guarantee approval. After a preliminary assessment of your finances, a responsible and experienced broker may advise you that the chances of approval are great but not 100%.

The tell-tale sign of a fly-by-night or inexperienced broker is someone who talks to his or her banking contacts or credit savviness and guarantees a 100% loan approval guarantee. These brokers usually do this to seal the deal quickly.

Why are the Benefits of Hiring a Business Loan Consultant?

But do you really want a loan broker if you can do all your paperwork (and legwork) without paying a single dollar on the broker’s commission?

It all depends on your priorities, actually.

Some companies and business owners would rather brave the loan application process. In contrast, others choose to outsource the task to a broker to save effort and time.

In the latter case, the advantages of using a broker should far outweigh the benefits  of going through the process without the use of a “go-between.”

So, what’s the point of getting a broker? What’s in it for you, besides saving valuable time?

Contacts

Professional brokers, especially those who have been in business for years, have established relationships with a multitude of financiers and bankers.

They have known and worked with so many banks and financial institutions in the past, giving them (and you) the comfort of knowing which ones could provide the best deals. A loan broker knows where to look for a financier who is well suited to your financing needs. He is going to find the missing piece of the puzzle.

Speed and Efficiency

If you urgently require funds quickly due to specific time-sensitive reasons, such as the fulfillment of certain contractual obligations or to seize the opportunity, a broker may be able to help you get the deal done faster.

Expertise and Experience

An experienced broker will have both mastery and experience in the lending process as well as credit documentation.

He is aware of the market, including indicative rates, and knows where the loan is over or reasonably priced. It has information on the common types of collateral offered as a loan guarantee. You can also count on him to give sound advice on more complicated facilities, such as commercial financing and factoring.