The role of brokers in securing SME funding
Growth Lending works with brokers and intermediaries regularly – they are a hugely important part of the funding ecosystem that has developed around small and medium-sized enterprises that are looking to grow.
We value these relationships greatly, but we are always interested in expanding this network so we can reach even more ambitious businesses that need to raise funds.
How do brokers support Growth Lending?
When our brokers and intermediaries introduce us to a business, we know they will have already been through a filtering process that ensures the business is a good match for our eligibility criteria and equally, that we are a good match for the businesses’ funding requirements.
It does not necessarily mean that all introductions will culminate in us making an investment – or in the business choosing us as a lender – but having a knowledgeable broker involved from the outset usually makes the process more time efficient and seamless for all parties.
How does Growth Lending support brokers?
We want to ensure that partnering with us is a rewarding experience, both operationally and financially, for brokers.
We have set up commission schemes that reward brokers, when we choose to invest in a business they have introduced. The rate of commission differs depending on the funding we provide but we always aim to ensure that brokers are compensated for the lifetime of the client’s facility with us.
How do brokers support SMEs?
Brokers provide crucial support to businesses seeking funding. Often, these are brilliant businesses with hugely exciting potential, but it may well be the first time they have sought any kind of investment, or the first time they have considered seeking investment outside of their bank, so they are not sure what to expect.
Having a broker on hand helps them to prepare for the funding process – from identifying suitable investors and introducing them to ensuring businesses have all the information and data readily available for lenders to review.
How else does a broker support the funding process?
Once an introducer is comfortable that we are a good match to support their client’s growth journey, they will play a key role in ensuring we can meet the timelines we have all agreed.
They can also help us to make the most competitive offer to a prospective client by giving us a feel for which aspects of the deal are most important. A business looking for funding will often be speaking to several investors at any one time, so knowing what we can do to stand out from the crowd, beyond the usual USPs of our proposition, is helpful for us – and for the business.