Why Go with a Broker?

During a recent meeting with a sales manager, the topic came up of why they would use an equipment finance broker, instead of finding a direct source for their company’s leasing and financing needs. I told them that option was certainly available but offered a few points to carefully consider.

1.  Find a lender that will deal directly with an end-user. Most lenders prefer to work through experienced brokers who organize and pre-qualify a client’s financial package before being submitted. This eliminates substantial work on the lender’s side.
2. Gather and organize all your own financial information the best way you can. If you call the lender’s 800 number to get advice, trust me, it’s not going to be easy. If you forget or omit something, be prepared to have your application kicked back to you. If you have a time constraint, this can be very frustrating.
3. Be ready to accept the information and guidelines the lender offers you since they will only present what their specific institution can offer; you will not know how that compares with the market. If you have time, you can repeat this process and visit 3 to 5 lenders to compare their offerings.
4. Be prepared to pay an interest rate, which is equal to or higher than what an experienced broker can negotiate for you. Just because you go directly to a lender does not mean the internal sales agent you are dealing with is not paid a salary and a commission on each deal they process. I know this as fact since we work with several internal agents. Therefore, the rate you pay includes that entire overhead expense.

First U.S. Finance works directly with wholesale lenders and private equity investors. We prepare a complete financial package with profile for each client prior to submitting it to a group of underwriters for review. Once we have an approval, we then select the most competitive funding source and offer our clients a proposal. We are there each step of the way to advise and consult with each lessee even after the deal is completed because our goal is to offer a great product and build a long-term relationship.