Business Loan Broker Prospa: Access Commercial Finance Today
When you’re looking for a business loan it isn’t always easy to know who to turn to for the best deal. Banks turn getting a business loan into a hassle full of red tape. Meanwhile, it can be difficult to know who to trust when approaching independent loan providers. Choose the wrong commercial loan broker and you could end up paying steep interest rates and hidden fees, while struggling with poor customer service.
That’s where Prospa comes into the picture. We have done the hard work of finding some of the most trusted and efficient loan providers in South Africa. Apply for a loan through us and we’ll send your application only to the loan providers in our network who we think are most likely to approve your loan application quickly and with minimal red tape.
What is a business loan broker?
Business loan brokers work with multiple lenders in order to connect their clients with the best loan for their specific requirements.
This takes a lot of the hard work out of the loan application process as you need to compile and send out your application documents just once, rather than going through the time and effort to apply at each provider separately.
Furthermore, commercial loan brokers like Prospa know which provider is most likely to approve a loan based on your industry, loan amount and cashflow situation. We’re objective and impartial, which means we’ll submit your loan where it is most likely to be approved.
The best part? You don’t pay us a cent for helping you secure your loan.
Why use a business loan broker instead of going direct?
If your time is precious to you, a business loan broker is the best way to get your loan. By using a broker you save yourself the many hours you’d need to research suitable lenders and send out loan applications.
It’s the same principle as when you buy a car – every car dealership has on-site vehicle loan brokers who help you secure the best car loan, instead of you having to approach vehicle finance providers independently to get finance on your vehicle.
We not only have a good understanding of what the various business lenders in South Africa bring to the table, but we can match a specific lender to your specific needs to boost the chances of securing the loan you need.
Brokers or lenders?
| Criteria | Broker | Direct Lender |
|---|---|---|
| Loan options | Multiple | One |
| Number of applications | One for all lenders | One per lender |
| Support | Yes | Quality varies by lender |
| Application Process | Single form | Repeated for each lender |
| Application Duration | Decreased. All potential lenders review your application at the same time. | Increased. Applying to multiple lenders in succession extends how long it takes to secure a loan. |
| Approval probability | Increased – we know which lender is most likely to approve your loan and send them the exact info they need to process it quickly | Reduced – due to mistakes during document submission and failure to approach the right lender |
Understanding Broker Fees
We mentioned earlier that we don’t charge a cent for helping you secure a business loan and you may be wondering how that works.
The answer is simple: lenders pay us to help connect them with suitable loan applicants. Just as you don’t want to waste time approaching lenders who will reject your loans, lenders don’t want to waste manpower and time vetting loan applications which they will eventually reject.
Brokers also provide lenders with free marketing. We make businesses aware of the funding solutions available from reputable lenders right at the moment when they’re looking for a loan. This means lenders are more than happy to reward us for each successful loan application we facilitate.
What sets Prospa apart as a broker?
When you fill in our application form you’ll quickly realize that we go to a lot of trouble understanding your business’s financial situation and to ensure that you have what we require to submit a successful loan application on your behalf.
This means we provide the lenders in our network with strong applications, and avoid wasting their, or our clients’, time with incomplete or weak applications.
We also focus exclusively on unsecured business loans. This helps you to avoid transferring the loan risk to assets or property that may be critical to the future profitability of your business.
In addition, we vet our lenders carefully and steer clear of lenders with poor customer service or unfair business practices. We also follow up with our clients at the end of the loan application process to survey their experience of lenders and related processes.
How the Loan Process Works With Prospa
Prospa tries to keep the loan application process as simple as possible.
- You submit a detailed loan application form
- We match your application to suitable lenders
- The lenders communicate the outcome of the application process
Your loan application is the most important step in this process. Provide us with accurate, correct information in the required format and we’ll be able to submit your application to suitable lenders promptly.
If your loan application is accepted by a lender you’ll be provided with one or more loan offers. You are under no pressure to accept any offer, and are free to walk away from the deal until you’ve put pen to paper with the lender – no hard feelings!
FAQs
What is a business loan broker?
A business loan broker acts as a go-between between businesses requiring loans and businesses or individuals offering loans.
What is the difference between a loan broker and a lender?
While a broker connects individuals and businesses with loan opportunities, a lender puts up the physical cash for the loan. Loan contracts are therefore made between you and the lender.
How do business loan brokers make money?
Business loan brokers are paid commission by lenders on successful loan applications. This commission is typically a tiny percentage of the loan amount and is not added onto the costs of the loan.
Is it better to use a business loan broker or apply directly?
Applying for loans directly involves submitting multiple unique applications, which can be time-consuming and result in a higher chance of rejection due to mismatches between the lender’s requirements and the loan applicant’s ability to meet these.
At no extra cost a broker allows you to submit a single loan application to multiple lenders, while benefiting from the broker’s knowledge of which lender is most likely to approve the application.
Can business loan brokers help if I have been rejected by a bank?
Yes, as business loan brokers have access to lending products not traditionally offered by banks such as asset-based loans, title loans and unsecured loans. Typically the requirements for bank loans will also be more arduous than for the lenders working with brokers.
Is Prospa a direct lender?
No, Prospa is a commercial loan broker that can refer your loan application to relevant direct lenders.
What kind of loans does Prospa help businesses get?
Prospa currently focuses exclusively on unsecured business loans, in other words loans that do not require the lender to put up assets as loan collateral.
Can I get a business loan through a broker if I have bad credit?
This depends on the type of loan product. Asset-based lenders are likely to disregard credit ratings when offering loans as their risk is covered by holding assets as security against the loan. Lenders providing unsecured loans will typically require a sound credit rating as they are reliant on their customers meeting their loan repayment requirements to settle their loans.
