Choice, comparison, and MFAA membership.
A good Finance Broker can be a great asset. But how do you tell if your Finance Broker is any good? A good Finance Broker will present you with choice, do product comparisons and be an MFAA member.
Does your Finance Broker represent multiple lenders?
The advantage of going to a Finance Broker is that they can present you with a wide range of products. If your Finance Broker only gives you one or two lenders to choose from, you may consider someone who has a wider option.
Does your Finance Broker compare products?
It’s generally difficult to compare financial products. That’s where a good Finance Broker can help. They have applications, tools and calculators that can take the guesswork out of finding the most suitable option for your business. If your Finance Broker isn’t able to, or doesn’t, compare products, they’re not doing their job.
Finance Broker charges
Commercial, equipment and general Finance Brokers usually enter into a mandate or agreement with the commercial or business borrower. The borrower pays a fee to the Finance Broker for sourcing their required finance.
The simple test of a good Finance Broker: MFAA accreditation
The simplest way to test your Finance Broker is to ask them if they’re a member of MFAA. If they are, it means they’ve satisfied strict criteria regarding education, experience and ethics. MFAA members truly are the Essentials of Borrowing.
Source: The Mortgage and Finance Association of Australia (MFAA)