The lesser-known benefits of using a commercial finance broker


Many of the companies which approach us have a clear picture about which funding product they require. If it’s a loan, for example, we might be asked to identify the most suitable loan provider for their business.

However, new research has quantified another big benefit of using a broker as opposed to going direct to a lender: you might end up securing a different facility altogether, one you hadn’t considered or even been aware of.

According to figures released by the National Association of Commercial Finance Brokers (NACFB), the UK’s largest independent trade body for commercial finance brokers, 28% of broker-led transactions during 2022 resulted in the client securing a different solution to the one they originally enquired about.

That’s a significant statistic. Had they not approached a broker, those businesses might have pursued a facility that may have been less suitable, or even wasted time researching and applying for a product they wouldn’t have been able to secure.

Building on the example above, a business owner might think a loan is the best way to access additional funding, when actually, if trading on credit terms, invoice finance, for instance, might provide more a targeted and ultimately beneficial solution.

Overcoming rejections

The research also highlighted how beneficial a broker’s services can be for businesses which have previously had a funding application rejected.

Indeed, 29% of companies who secured funding after using the services of a broker during 2022 had previously been declined elsewhere. This demonstrates how using a broker can increase the chances of a facility being secured due to their knowledge of the market and lenders’ different products and appetites.

Crucially, brokers also typically have access to decision makers, which can speed up the process.

Interestingly, the research also revealed that 40% of lenders don’t refer the businesses they decline to other lenders, leaving the business in the position to start their search all over again. Conversely, brokers will almost always introduce two or three suitable options (or more, where applicable), meaning any setbacks can be moved on from quickly and alternatives assessed and progressed.

True value

The other revealing figure to come out of the study was that 70% of total lending provided by the NACFB’s patrons (the lenders which are part of the trade body) in 2022 came from the broker channel.

While it is well known how advantageous it can be for businesses to use a broker when searching for finance (or comparing their existing facilities against the current market), this highlights the important role brokers have in helping companies of all sizes to access the funding they require.

Some of the primary benefits of using a broker include:

At Hilton-Baird Financial Solutions, we have over 25 years’ experience of introducing businesses to the most suitable funding for their requirements. Independent and multi award-winning, we’re authorised and regulated by the Financial Conduct Authority, affiliates of UK Finance and members of the NACFB.

Click here to read more about the benefits of using our services or, to discuss your requirements with our team, please call 0800 9774833 or request a call back.


Some of the funders we work with

  • Time Finance
  • Lloyds Bank Commercial Finance
  • Close Brothers Invoice Finance
  • Accelerated Payments
  • Royal Bank of Scotland
  • Kriya
  • Haydock Finance Ltd
  • Praetura Invoice Finance
  • Barclays
  • Tradeplus24
  • Nationwide Finance
  • Clear Factor
  • Skipton Business Finance
  • Santander Corporate & Commercial
  • IGF Invoice Finance
  • Cynergy Business Finance
  • Team Factors
  • Woodsford Tradebridge
  • 4Syte
  • Berkeley Trade Finance Ltd
  • Optimum Finance
  • InvoCap
  • Ultimate Finance Group
  • Aldermore Invoice Finance
  • Davenham Trade Finance
  • PNC Business Credit
  • Regency Factors
  • Blazehill Capital
  • Davenham Asset Finance
  • Merchant Money
  • Castlebridge
  • eCapital Commercial Finance
  • MaxCap
  • Investec
  • Peak Cashflow
  • Partnership Invoice Finance
  • Metro Bank SME Finance
  • Giant
  • Sonovate
  • ABN AMRO Commercial Finance
  • Leumi ABL
  • Roma Finance
  • Pulse Cashflow Finance

Authorised and regulated by the Financial Conduct Authority (FCA number 730445)
We are a credit broker and not a lender and offer credit facilities from a panel of lenders