Arranging business finance is often exactly the same. A lot of business lenders will lure brokers and clients in with a cheap interest rate, but there is SOOO much more to a loan than the interest rate.
The interest rate is just one small part. What about monthly fees that you weren’t told about in the glossy ads? What about the massive upfront fees of thousands of dollars that your client has to physically have to pay just to get your loan assessed?
All of a sudden, that business loan is not looking that cheap anymore, is it?
And what about flexibility? Does the elcheapo loan allow your client to extend if they need more time, and do so without any penalties? What if they want to pay out early? Can they do that without any penalties.
Often, the answer will be NO.
And then there is the speed. The business bridging loans and 2nd mortgages with the phoney cheap interest rates often take 1 , 2 or even 3 weeks to settle, as these lenders will want your client to pay thousands of dollars up front so they can do a full valuation on their property. If your client needs the money by the next business day, what use is that to them? Plus, there is no guarantee the valuation will come back favourable, so you may waste 2 or 3 weeks and thousands of dollars for nothing.
So beware of the little hidden traps that exist out there, and only deal with a trusted private business lender. That lender is www.HomeSec.co.nz