Every week, Adam Tyler, Chief Executive of the National Association of Commercial Finance Brokers (NACFB) gives us a handy hint for brokers’ best practice…

Tip 2: Never assume!

The lead has arrived; the customer knows he needs to borrow to help his business grow. The finance he thinks he needs may not be the finance that is actually right for his business. This is another area where an experienced commercial finance broker can help. Although the business owner may think that he needs a loan to buy a piece of equipment, or an overdraft facility to help with the cash flow, a good broker will explore all the finance options with them and find the best deal for that business. For example, instead of a choosing a business loan to buy equipment, a broker might recommend a leasing arrangement as more suitable. Perhaps instead of a traditional overdraft, the flexibility of a factoring arrangement could give a business the cash injection it needs.

There are many scenarios where a trading business, may need a number of different types of Commercial Finance, perhaps a Commercial Mortgage for the property, leasing or asset finance for the equipment within the business, factoring or invoicing discounting for any debtor finance, and perhaps even vehicle finance to cover a fleet of cars or vans.

An analysis of all the debts in a business is not only the start of giving the right advice; it also

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