Broker Vs. Lender: Which Is Better?

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Trust Business Loans makes its case for the brokers.

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You've got a business to run... let Trust work for your financing.

When a customer shops for a mortgage, a car lease, or a business loan, there is often the following dilemma:

Should I use a Broker or a Direct Lender?

Trust Business Loans, a Los Angeles based broker for merchant cash advance, is making its case for the broker.

When business owners shop specifically for money, where the product has no variance from lender to lender, there are generally three top priorities:

1. Cost / Rates
2. Speed
3. Customer Service

Accordingly, here is the Trust Business Loans take on broker vs. lender:

COST / RATES - This criterion is simple. If lenders always offered better rates than brokers, brokers wouldn’t exist. Brokers set lenders against each other so the customer gets the best deal.

Lenders often argue that their rates are better because there’s no “middle man” involved. However, lenders generally pay commissions internally on a direct sale just as they would externally with a broker. So, there’s a middle man either way.

SPEED - Speed can depend on the customer, the broker, the lending institution or all three. A good broker will guide the customer through their paperwork to ensure that the business application is in complete form before it ever reaches a lender. The broker will then forward the application to the fastest lender.

A fast lender could guide a customer's paperwork the same way. However, lenders are generally inclined to negotiate rates more to their favor with a direct customer than through a broker. This can cause frustrating delays. Also, a lender may not prioritize an applicant when not being pushed by a broker.

CUSTOMER SERVICE - Some lenders have good service while others do not. The brokers know who the good lenders are. Furthermore, and this is very important, a truly great broker will handle all customer concerns on behalf of their customers who can then simply focus on their businesses.

Trust Business Loans is a proud broker, committed to the best rates, speed and service for its customers.

Learn more at:

Mike Spitz
Vice President
Trust Business Loans
T: (877) 553-3280
E: mike(at)trustbusinessloans(dot)com


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