Mortgage and Finance Brokers - Don't Be Fooled By A Cheap Interest Rate

We lift the lid on other lenders tricks

Let me take a moment to tell you a few industry secrets. In fact, this could be called The Good, The Bad, and The Ugly of Short Term Business Loans. Privately funded short term business loans (or caveat loans as they are sometimes called) are a lifesaver for small businesses, and have been for decades. However, like with all industries there are the lenders who are open and transparent and want to genuinely deliver a good outcome for borrowers, and then there are the lenders whose key mission each day is to see how much they can fleece off an unsuspecting borrower in their hour of need.

A FEW TIPS FOR BOTH BORROWERS AND FINANCE BROKERS

LOOK FOR A WELL ESTABLISHED LENDER

Do your research and find one who has been around for a fair while, and one who isn’t afraid to advertise their physical office address on their website.

ASK IF IT'S GENUINE

When you call a company, Ask if they are a Genuine Private Lender. If they aren’t, your loan and your personal information could end up anywhere as they try to shop it from lender to lender. Not to mention the time lost while they try to sell the loan to lenders all over the country.

DON'T BE FOOLED BY CHEAP INTEREST RATE

When you submit your loan application and it gets conditionally approved, Don’t Be Fooled By a Cheap Interest Rate. Check for hidden fees, such as charges when you repay the loan, or monthly fee’s which is just interest in disguise.

WHAT HAPPENS IF I REPAY EARLY ?

Ask the lender what happens if the loan is repaid out early. Are there any penalties, and would you save on interest. Some lenders won’t pass on a saving and instead will hit you with an Early Repayment Fee. Crazy!!

WHAT HAPPENS IF THE LOAN IS GOING LONGER THAN YOU EXPECT ?

Many lenders will charge huge fee’s just to extend the term of the loan, and some simply won’t extend it at all.

DON'T PAY MASSIVE UPFRONT FEES

If a lender asks for money front and it’s in the order of thousands or tens of thousands of dollars…. RUN A MILE. Quite often these operators say Yes to everything, but they are just interested in taking up front fee’s from borrowers. The outcome — you are grossly out of pocket, and you have no loan to show for it.

Don't Be Fooled By A Cheap Interest Rate

Whilst we are extremely competitive, we don’t go out there and guarantee that we have the cheapest interest rates. However, because we are fully transparent and don’t engage in ANY deceptive conduct with hidden fee’s, our loans often work out to be far less expensive than the loans from the private lenders with the so called cheap interest rates.

Plus we offer interest rebates to borrowers if they pay out early, AND we are totally flexible if a borrower needs the loan for a longer period than they first thought….. And with no penalties.

Plus these operators often will have No flexibility in their loan terms. You take the loan for 3 months, you are stuck with 3 months… not a day less and not a day more….. Unless you are happy to be belted with fees and penalties.

If you are a broker watching this…. This is important information for you too. Imagine the damage this would do to your reputation if you took a client to one of these rogue lenders. Ultimately, you will be the person who the client will blame if you take them to an unethical lender for their urgent short term business funding.

The solution! Stick with Australia and New Zealand’s Trusted Short Term Business Lender…. HomeSec Business Finance. We have been in business non-stop since 2004 and we care about our clients and our finance brokers.

Want To Get More Information ?

Our friendly team of Homesec Business Finance experts are waiting to speak with you.