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Why are small businesses ditching the big banks?

Ready for a joke?

It wasn’t too long ago that Choice magazine released an article about mortgage brokers.

One of the quotes from the article was: “Mortgage brokers make lots of promises to get you the best of the perfect loan, but legally they just need to arrange something you can afford to pay. We need laws that make them live up to these basic promises.”

Now that is a joke. A real joke.

The reality is that when you walk into a big bank, all you are going to get is another sales person driving their own products. They have their own interests to get their sales bonuses. That’s it.

The sales environment in the big financial institutions is concerning and corrupt.

Smart business owners across Australia aren’t necessarily ditching big banks, but they are ensuring to get a mediator in the middle. This comes in the form of a mortgage broker.

Truthfully, mortgage broking for small businesses is a no-brainer.

Most small business owners are not only growing business, but they are also buying properties. If this is the case, you will need to use a mortgage broker to keep the banks honest.

The key way to entail whether you have a good mortgage broking on your side is to ask them one specific question. If you are a client seeing a mortgage broker, ask them this:

“Mr. or Mrs. Mortgage Broker, how many financial institutions have you settled loans with in the last twelve months?”

I asked Linda Hamilton, our in-house broker at Paris Financial, this same question yesterday.

Her answer? Seventeen.

She has settled loans with seventeen financial institutions in the last twelve months. That is a good sign.

If your broker is settling with many financial institutions, you can be sure they are working hard and getting the best rates. It means they are working hard for you and leaving the big banks for dead.

Ultimately, mortgage brokers for small business people an absolute must.

When you are ready to acquire a loan, come chat to our lending team and we can sort you out with the best loan possible.

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