Find a Commercial Broker
Intermediaries’ role in the commercial mortgage sector has become more critical in today’s ever-changing economic landscape. Our specialist knowledge of commercial mortgages is key to unlocking many financing opportunities for businesses of varying sizes and structures.
Organisations face the dual challenges of inflation, heightened interest rates, and persistent economic uncertainty. The need for expert guidance in securing funding is unmistakably clear.
The Vital Role of Intermediaries
Intermediaries have long provided access to diverse funding options tailored to specific business needs. Our expertise lies in matching businesses with suitable lenders and managing deal intricacies. We ensure each deal aligns with the client’s financial strategies and long-term goals. This role is crucial as businesses navigate a complex economic environment.
Insights from Recent Research
Recent findings from Thincats offer an illuminating perspective on the current state of external funding for small and medium-sized enterprises. The research highlights significant variances in how, why, and where SMEs obtain their external capital. It also touches on their funding ambitions for the coming year. Understanding these trends is crucial for intermediaries aiming to provide the most relevant and effective solutions for their clients.
THE KEY FINDINGS ARE:
- 75 per cent of small businesses say they have never applied for external debt funding, compared to 38 per cent of mid-sized businesses.
- Mid-sized businesses are three times as likely (17% vs 5%) to seek external debt in the next twelve months compared to small companies, suggesting a higher degree of resilience and business confidence among the mid-sized.
- Mid-sized businesses were also more likely to seek advice about funding options than their smaller counterparts. 56% of small businesses did not seek any advice. In contrast, mid-sized businesses were more likely to consult an adviser. Just under one-quarter (24%) spoke to a commercial finance broker. Another 23% spoke to an accountant, and 17% consulted a corporate finance or debt adviser.
- Of the companies securing finance recently, most sought working capital (42%), asset-backed finance (33%), and growth capital (21%). Growth capital is more popular among mid-sized than small businesses (27% against 13%).
- 56% of SMEs used high street banks for their latest funding, followed by alternative lenders (11%), asset-backed lenders (8%), and challenger banks (6%). Of these, 60% of small and 54% of mid-sized companies chose traditional banks.
- Businesses taking loans over £10m often consult corporate finance advisers (59%). Those securing £250k-£5m usually use accountants or brokers. Companies seeking under £50k often forego advice.
- Over 50% of businesses choose high street banks for loans between £10k-£5 and £ 5 m. Their popularity drops to 28% for larger loans and 14% for loans between £10-15m. Direct lenders and private debt funds are most common for these larger amounts, each used by 28% of businesses.
The Importance of Choosing the Right Commercial Broker
Selecting the right commercial broker is crucial in a customer’s journey. Factors like the broker’s experience, location, and gender can greatly impact the customer’s confidence. Clients value a personalized approach with face-to-face meetings.
This highlights the importance of a broker’s interpersonal skills and proximity. These considerations led to the launch of an Expert Broker Directory.
It’s crucial to provide customers with what they want, but even more essential to offer the comfort and assurance they need to commit to a financial decision based on sound advice.
Personalised Broker Selection
The emergence of online platforms is noteworthy as they aid businesses in this critical decision-making process. These platforms allow clients to choose a commercial broker based on gender, experience, and location. They streamline finding a suitable broker and enhance the chances of a successful funding outcome by aligning business needs with broker expertise.
As businesses navigate the turbulent waters of today’s economy, the guidance provided by skilled commercial mortgage brokers is invaluable. These professionals deeply understand the market dynamics and tailor their service to meet each client’s unique needs. For businesses looking forward to securing funding soon, choosing the right broker could be one of their most strategic decisions.
For businesses ready to explore their commercial mortgage options, click here to access a platform where you can select a broker that best fits your needs based on specific criteria such as gender, experience, and preferred interaction style. This search facility aims to connect you with specialists best equipped to support your business’s financial goals.