Tips for Short-Term Business Lending Novices

Short-term business finance is a key component in the spectrum of funding solutions and an essential part of a broker’s role is to alert clients to this option and then facilitate a loan application. Brokers should assess their client’s situation and if a short-term loan presents as a potential solution talk to an experienced broker partner or a professional short-term lender like Quantum Credit.

Often a borrower’s needs are not met because the broker, under the misapprehension that the short term loan process is too complex, expensive or time consuming, makes a judgement on the borrower’s behalf and elects not to process the scenario at all. This perception of cost and complexity is wrong - the reality in most cases is that it is fast and straight forward and the cost, when rationalised against the potential loss through not having a finance solution, is both reasonable and justifiable.

Short-term business lending is not as challenging as it might seem, especially if you work with experienced funders and/or other commercial finance brokers. Here are some tips:

  • Explore the various commercial lending products that are available. Conduct research on aggregators’ websites and look out for commercial training sessions provided by the major banks and non-banks. Once you have gained a basic understanding, consider formal tertiary study in the field,

  • If short-term business lending is not your core competence, it is important to talk directly to funders, or to broking experts who have experience and contacts in the relevant field - asset and equipment finance, debtor finance and short term lending,

  • If you’re a specialist residential mortgage broker, ally with an experienced broker ‘partner’ who might be willing to guide, mentor and train you in the business lending arena. Find someone prepared to share any brokerage and allow you to retain future personal lending business from that customer. Then you can share the prospective business borrower’s scenario and develop the right solution.

If you’re a broker in doubt about short term finance options, “Let’s talk” – there’s no downside. We’ll provide you all the necessary insights and you’ll know very quickly if we can help. Contact Us
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