How Finance Brokers Earn Income

Contributed By: PCS Finance on

As a Finance Broker we sometimes are asked why do we get paid a commission from the bank and why would I go to a broker when I can source finance myself. I want to dismiss some of the myths around engaging a Finance Broker and explain what the positives are in engaging a reputable Finance Broking company. I suppose it’s a bit like Management Rights where the onsite Manager is paid an income to do a job. If you fulfil this role in a professional manner and educate your owners along the way, why would an owner go to someone else to manage their property?

Firstly I want to stress, that our income is paid by the Bank at settlement of the loan and is not paid by the client. The income is more like a “Referral Fee”, the Bank pays the Broker a fee to refer business. They in turn, will provide us with a competitive finance package. We have no preference with any particular bank, we provide options and recommendation however at the end of the day it’s your decision which bank to choose. So the customer actually benefits from relying on our advice and expertise. There is a perception your existing bank whom you have been with for 10 years will offer you the best deal so there is no need to source other options? Unless you source other quotes, how do you really know if your bank is offering the best finance package?

As a Management Rights Finance Broker, our clients range from people who want a career change and want to get a start in managing their own complex, retirees wanting to still work but have a “sea change” to clients that are building a portfolio and equity in acquiring numerous business ventures. Whatever type of client it is, buying into a Management Rights business is full of complexities and can easily become a mine field of hassles and problems if you do not have the knowledge or the workings of the MLR industry. We not only provide support and advice on borrowing money but we will share our experiences with you, in relation to buying a Management Rights business.

From time to time I receive calls from clients who have contacted their own bank who does not always have Management Right lending know how, and then find out at the last minute that finance is about to fall over. It’s surprising how many times clients have been let down by their bank after having a relationship with them for several years. In most cases, it’s not the bank that’s the problem, it’s the person they are dealing with. It is a stressful time when buying a business and borrowing money however it’s something that can easily be averted if a buyer is suitably educated prior to signing contracts. Our process as a Finance Broker is to assess our client’s affordability and security position prior to them going to look for a complex to buy. We guide them, answer all their questions and assist them with engaging professional’s example Accountants, Business Brokers and Solicitors who are proficient and up to date with MLR legislation. We gather all the information that a lender would require, we liaise directly with that lender and we basically take the stress and hassle away from our clients. The information we provide is prompt and accurate.

We will support you, the client; from the start, right through to the final moment, where you officially become the new owner of your Management Rights business or even a new Investment Property. Once the loan has settled, we then get paid but our service does not stop there. We are always here to help you after settlement with any queries and lending reviews. PCS Finance has now been in business for 20 years, so we are here to help you for the long term.

– See more at: http://www.theonsitemanager.com.au/management-rights-information/3785589-How-Finance-Brokers-Earn-Income#sthash.ehrE9NZ1.dpuf

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