What to Ask Your Broker Before Taking Out a Business Loan
Helpful questions to ask your broker before taking out a business loan
If you’re considering taking out a business loan you’ll want to find the right package for your needs. Whether you’ve taken out business loans before or it’ll be your first time dealing with a business loan broker, it’s important that you feel confident and comfortable asking any questions that you might have.
Big or small, your questions should never be dismissed. Contact Positive Lending Solutions to access decades of financial knowledge and experience.
What to ask your business loan broker
You’ve taken a step in deciding to get a business loan, the next step is finding the right one for you. Using a business loan broker can save you time, money and stress – and it’s totally acceptable to ask them questions along the way.
How does the business loan process work?
If you haven’t had experience before of getting a business loan, ask your broker to explain how it works. If you don't understand jargon or terms, ask them to explain these. If they’re impatient or reluctant to take the time to go through the process with you, switch to another broker who is able to give you the time that you deserve.
How many banks or lenders will you approach on my behalf?
This is helpful for you to know as it’ll indicate how wide your business loans broker will be searching in order to get you the best business loan possible. At Positive Lending Solutions we have decades of experience in the industry and access to a wide range of lenders so we can instantly approach a variety of lenders to find out what they can offer to you.
Will I be able to see all the options available to me?
There’s no reason why this shouldn’t be the case. Transparency and trust are values that Positive Lending Solutions places at the core of what we do. If a broker isn’t forthcoming about showing you all the options given by various lenders, you’d be right to get suspicious.
You need to make sure that your business loans broker gives you a selection of offers which you can compare – ultimately it’s your decision which one you choose.
Do you have references?
References have changed in the last few decades and nowadays the majority of them can be found online through sites such as Trust Pilot. It’s always great to ask your broker for their references directly but don’t be afraid to do your own background research as to how they rate in terms of customer satisfaction. Alternately, simply put your broker's name or organisation into Google and you'll find publicly available information about them.
What is the total cost of my loan?
This is really important and something that any business loans broker should explain to you in full – breaking down the cost of the loan into components if you ask. Don’t sign anything until you know exactly how much the loan will cost you.
Ask for the total cost, the monthly cost and the cost of the interest on the loan. Ask for help reading the small print to check for hidden fees.
What are the disadvantages of this loan?
A good business loan broker will be honest and upfront with you when it comes to the negative parts of any loan. If a loan sounds too good to be true, the chances are that it is.
It’s important that your business loans broker can clearly let you know any downsides to the loan before you sign it – supplying you with a copy of the loan agreement and giving you the time to consider it fully. Never feel pressured into signing a loan agreement that you don’t fully understand.
Will there be a cooling-off period for the loan?
Your business loan broker needs to be able to tell you everything about this loan – including whether you might be able to opt-out of it if you change your mind. If there isn’t a cooling-off period, you’ll want to know what the fees are for early repayment or for leaving the loan agreement early.
Will my information be shared with third parties?
Unfortunately, some business loan brokers do pass on details to third parties. This can become incredibly annoying especially when you receive numerous calls from other loan companies offering you products that you simply don’t need. You should be firm with your business loan broker if you do not want your information shared and take action if they fail to listen.
Finding the right broker for your business loan
At Positive Lending Solutions we understand that taking out a business loan is a huge commitment and something you might be uncertain or nervous about. Our expert team of brokers will always take the time to ensure that you understand the process each step of the way – giving you peace of mind that you’re making the right decision.