There was a time when banks and conventional lending institutions cornered the market on providing financial services for small businesses. Those days are long gone, as new choices such as equipment leasing, accounts receivable factoring, and asset based lending have provided a massive amount of available capital. A good financial broker can help a business sift through the many alternative funding sources to capitalize on the best funding solutions. In other words, business owners shouldn't look at brokers as someone that is costing them money. Rather, a properly trained and motivated broker can save tremendous amounts of time and money for the client.

From a strong economy to a major recession, the need for capital is constant. Capital is needed for equipment, vehicles, inventory, and premises. A good financial broker should be able to help owners access a wide range of equipment leasing companies, factoring firms, and asset based lenders. They will also know the various strengths and weaknesses of each funding source, which will help provide the best fit for the borrower.

Here are some of the ways a broker can benefit a company wishing to acquire capital:

* A properly packaged loan or lease application is essential for qualification. A broker can help package and present the application on the borrower's behalf. The broker will be able to package the deal in such a way as to present the company in the best possible light.

* The broker will negotiate with lenders to get the best deal for the borrower. Since the broker typically has an ongoing working relationship with the funding source, he will have a better chance of getting optimal rates than if the borrower or lessee negotiated himself.

* The deal is managed and expedited from beginning to end. Since the broker won't get paid until the deal is completed, he is motivated to expedite the transaction.

* Independence insures that the focus is on the borrower's needs rather than that of a single lender.

* The broker is not constrained by a single company's policy. For example, some leasing companies offer more flexible payment options than others. Others require a company to be in business for a certain amount of time. The broker knows which funding source will better meet his client's needs.

* In cases where cash is needed quickly, brokers know which sources can provided fast closings, sometimes in as little as 48 hours

* Competition among lenders usually leads to better terms and mitigates the temptation for a single lender to take advantage of the borrower

* The financial broker can bring a number of partners to the table to get the job done

* The independent financial consultant is highly trained both technically and on general business issues.

Whether the client needs factoring services, equipment leasing, or an asset based loan, all of these advantages should be taken into account when the borrower desires funding. The 1 to 2 point fee that is paid to the broker can be more than justified in terms of time and cost savings.