Finding the Best Commercial Loan Broker For You

Commercial loan brokers bring together borrowers and lenders. There are many questions that you should ask potential commercial loan brokers in order to ensure that you get the best commercial loan broker for you.

Questions to ask Your Potential Broker

  • What are you willing to finance?

  • Can I have the name and contact information of my lending institution?

  • Are the rates on the loan competitive?

  • What other services do you offer?

  • What type of relationship do you have with commercial lending institutions?

  • Are you being paid by the lender if you close the deal?
The Right Answers

  • Your broker needs to finance what you need. Figure out what you need (short term, long term) and then make sure that your needs can be taken care of.

  • Know who is lending you your money. If your broker will not tell you this information, there is something he/she is hiding.

  • Know your credit score and the prime market lending rate when you go to your broker. This way you will know if you qualify for a prime loan and you will not be fooled into paying a higher interest rate.

  • Look for intangibles. An open, active relationship between a borrower and his/her broker is important.

  • A broker that has strong connections with many lending institutions will be able to shop more thoroughly for a loan.

  • Brokers can profit from using a specific lender, but that lender might not have the best rate.