A Finance broker is a type of financial adviser who specialises in helping their clients find a loan that meets their requirements. The Finance broker will manage the application process for their clients and provide tailored advice along the way.
What does a Finance broker do?
A Finance broker is essentially a conduit between you and the lender. Their first job is to assess your financial affairs, put together a picture of your credit-worthiness, and help you determine what type of loan will be right for you.
They should then offer you a variety of loan options from the panel of lenders they act for. Finance brokers generally offer lending products from a number of different financial institutions, not all of the lenders are Banks, so keep this in mind before deciding.
Because they have access to numerous products, they will almost certainly have access to something that suits your needs and they can spend the time with you to understand what your goals are, to explain the options, and to help you with the paperwork. They can potentially provide you with a very useful service.
Why use a Finance broker? – Pros & Cons
As a go-between for borrowers and lenders, Finance brokers can be very useful if you aren’t confident in your understanding of finance or mortgages. Using a broker can be an excellent way of finding a loan given your personal circumstances – just make sure you select your broker carefully!
For some people, using a Finance broker can be a great move for your financial situation, but carefully consider the pros and cons and check that the broker you choose has the qualifications and experience necessary to find you an appropriate product.
Pros of using a Finance broker
- A Finance broker can potentially be an invaluable resource for those with a poor understanding of the finance and Finance industry, or their own financial affairs.
- A broker may be able to find you Finance that’s better for your individual or business situation and affairs.
- If you don’t have the time to do the extensive research required to properly assess the variety of loan products available to you, a Finance broker can do this for you (within the panel of products they sell).
- Finance brokers act on behalf of the lenders that pay them and as such may only show you products from a limited number of lenders.
- Educational qualifications and industry experience can differ widely between brokers, so make sure to enquire about this before you engage the services of any Finance broker