The key function of a finance broker is to act as the representative of a client for a lending institution. Many finance brokers specialize in specific areas whereas some offer complete finance solutions to their clients. Hiring a competent finance broker enables clients to enjoy certain benefits, such as:
- Financial brokers handle the bulk of all the paperwork
- Financial brokers take care of all the running around required.
- Financial brokers have access to a much larger range of finance options
- Financial brokers are extremely knowledgeable about the various types of loans
- Financial brokers allow clients more flexibility than direct deals with institutions
Financial brokers specialize in a variety of financial fields such as:
- Motorcycle Finance
- Car Finance
- Business Loans
- Housing Loans or Mortgages
- Reverse Mortgages
- Debtor Finance
- Equipment Finance
- Business Property Finance
Finance brokers bring clients various finance options, but only from the lending institutions which have accredited them to do so. This group of institutions is called the finance broker’s panel of lenders. The size of this panel of lenders varies from one broker to the next.
With developments in internet commerce and technology, finance brokers have slowly and surely brought their services to the World Wide Web, removing physical distances as a factor in choosing a competent finance broker. Online brokering was made possible because of financial trading already being implemented via the internet. One of the key advantages brought to the table by online brokering is that all transactions are monitored and controlled electronically, in real time.
Once hired, it is the finance broker’s responsibility to handle all the running around required in order to complete the various formalities set by the lending institution, thereby enabling the client to save on time and effort. Major corporations often hire teams of finance brokers to handle such requirements quickly.
Usually finance brokers do not request upfront payment from their clients. Instead they receive a commission based on the type of finance agreement they help broker. Many financial institutions also keep a set of finance brokers on a retainer, using them to acquire newer customers for the finance options they are offering.
Finance brokers are supposed to stay abreast of all the latest developments pertaining to financing by keeping track of not only their own respective panel, but also services their clients are offering. Clients with limited knowledge of the inner functioning of financial services can enlist such a broker and improve their financial situation significantly with the help of a finance broker