If you are an owner of a small business and want to borrow money, you might be realizing that it is somewhat complex and that you need some expert help from personal loan brokers Brisbane. It is true that small business borrowers could use some assistance going about the loan process. Brokers generally check with several lenders to get you the loan that best suits your needs.
If you are thinking about working with a personal loan brokers Brisbane, here are some questions you should ask your broker.
How many different lenders will you take my business to?
It goes without saying that your broker should shop your loan to as many funding companies and lenders as possible. It is always recommended that the borrower applies to at least 4-5 lenders when seeking out the best deal. Introducing this competitive dynamic will help you in getting the lowest possible interest rate.
What additional costs are going to be added to my loan?
There are no rules or codes which dictate how much a broker can charge a borrower for a loan. As a result of this, the difference between the fees of two brokers can have wide differences. Brokers associated and working with credit unions and community banks tend to charge lower fees. Many times, the broker’s fees are directly charged from the lender.
Should I also apply for loans at credit unions or community bank?
The decision of whether to apply for the loan to an online lender, community bank or credit union depends on what the borrower values most. If your primary concern is interest rates, credit unions, and banks will probably be your best choice. If your loan application does not get a green light from a bank or if you are offered one at a high premium, you may consult your broker about applying for loans from online lenders.
How can I count on my information being secure?
This question is often ignored by most borrowers, but it is one of the most important ones you must ask your broker. When applying for a loan, your broker comes across some of the most personal and sensitive information about you, for example, your driver’s license number, social security, etc. Therefore the information related to borrowers must have iron-clad security to avoid any mishaps. The most respectable brokers use encryption techniques, firewall security, etc. to avoid theft or misuse of information.
Will you make more money with some lender as compared to others?
The truth is that there is no standardization code when it comes to broker fees. Some brokers and lenders may team up. This means that some lenders may offer brokers higher fees if they make them come in contact with qualified borrowers directly. This practice is common in the mortgage industry as a result of which, you need to be vigilant. Make sure that your broker is not pushing you towards particular lender in order to reap benefits himself.
You must then analyze the answers to these questions to determine if the broker is really suited to your needs.
Oyster Financial 