Achieving the best-priced or most valuable deal depends on several factors, which can be grouped into five key categories:
- Risk Profile – Lenders assess factors such as industry, financial performance, security position, and serviceability when determining pricing.
- Loan Structure – The way a loan is structured (e.g., term, interest-only vs. principal & interest, security, and covenants) can impact pricing and flexibility.
- Market Conditions – Interest rates, competition among lenders, and the bank’s appetite for particular sectors influence pricing at any given time.
- Negotiation Leverage – Understanding how to position your application and which lenders have the best appetite for your needs can make a significant difference.
- Relationship & Advocacy – A finance broker has the experience, market knowledge, and lender relationships to negotiate effectively on your behalf, often securing terms that wouldn’t be offered directly to an individual borrower.
While banks may offer direct pricing, they are ultimately focused on their own interests. A skilled broker works for you, leveraging their knowledge and lender relationships to ensure you receive the most competitive terms available.
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