It really does pay to use a broker

Posted on April 1st, by editor in Caring Times. No Comments

|By Mark Widdows, senior partner at Global Business Finance| I have just put the phone down after speaking with a care home owner about a new venture and expansion. What they did not remember was that we spoke nearly five years ago when they wanted to refinance. At that time the client was so concerned about every fee that they missed the whole point of using a broker. It was because we wanted 0.75 per cent of the advance to transact the business that the client decided to take our advice, and then negotiate their own deal. Having reviewed their new requirements I enquired as to the current lender and terms. Well, blow me if the client hadn¹t gone to the same bank as I was going to introduce them to, those five years ago. Where I had one interest rate in mind the client, by using the direct approach, had negotiated a rate that was 0.75 per cent higher than mine. The net effect has been that the client has paid more than £10,000 in additional interest, over and above our fee of £2,500. Worse still, they are

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