We can all remember the “good old days” of commercial banking, when every Bank had a branch manager in every branch and if a business owner needed funding he/she would simply “pop into” their local branch, and speak to their bank manager.
The branch manager was part of the community and knew his customers and their businesses.
Unfortunately, with few exceptions, this is no longer the case, with business managers (if you can find one and get them to speak to you) being located in commercial “hubs” in the main cities.
The personal approach we used to see has largely gone – many borrowers are now turning to brokers and intermediaries to source their finance.
There’s a lot to be said for it – the USA is ahead of the game with a large percentage of all debt over there sourced through intermediaries.
If a prospective borrower engages a commercial broker, then they have access to hundreds of different finance providers, rather than one, as they would if they engaged their own bank.
In addition, the broker will knock the deal into shape and pick the most appropriate lender(s), whom they have already introduced business to and, thus, have a good relationship with.
Fees are often paid to be broker by the lender so it doesn’t cost any more and, if the application is declined, the broker will engage another lender.
Next time you need finance, why not engage Commercial Expert to sort it on your behalf?