Myth 1: Using a broker always costs more than going straight to a lender.
Not necessarily. Brokers are generally paid a commission by the lender, and some also charge a fee. Either way, we'll tell you in writing how we're paid and what you'll be charged before you go ahead. Because a broker can compare several lenders, you may find a better fit than you would by approaching one lender on your own.
Myth 2: Brokers only work with big businesses.
Brokers work with businesses of all sizes, from sole traders and tradies to growing companies and primary producers. If you have an ABN and something to finance, it's worth a conversation.
Myth 3: Brokers only arrange loans.
Brokers can also help with other forms of finance, including asset finance, leasing, invoice finance and novated leases.
Myth 4: Brokers only deal with the big banks.
A broker's panel can include banks, non-bank lenders and specialist finance providers. No broker covers every lender in the market, so it's fair to ask which lenders we work with.
Myth 5: Brokers only care about making a sale.
Because brokers are paid when a loan settles, it's reasonable to ask how that affects the advice you receive. A good broker takes the time to understand your business, your needs and your goals, explains the trade-offs, and tells you when finance isn't the right step. If something goes wrong, you can raise it with us, and if it isn't resolved, you can take it to the Australian Financial Complaints Authority (AFCA).
Questions worth asking any broker
- How are you paid, and will I be charged a fee?
- Which lenders do you work with?
- Why is this option better for me than the alternatives?