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Working with a Loan Broker

August 28, 2013

Sometimes, small business owners find that the most efficient way to shop for a loan is to use the services of a loan broker. A loan broker essentially acts as a middle man between the business owner seeking a loan and the lender. The loan broker will need the same information that a lending institution would if the business owner was working with the bank directly. One of the things a broker will ask for is a business valuation, including the value of all assets, like machinery and equipment, the business owns.

When working with a loan broker, complete honesty is essential. According to an article written by a loan broker on the “You’re the Boss” blog published by The New York Times, prospective borrowers who hide information they think will hurt their chances of securing a loan do themselves a disservice. During the loan process, every piece of information will eventually come out. According to this broker, they sometimes have to go back to the drawing board months into the loan process because of undisclosed information. In extreme cases, a broker might sever the relationship with a prospective borrower.

So keep in mind that in lending situations, honesty is always the best policy. And finding a certified machinery and equipment appraiser who will accurately value your assets is essential.

The NEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.

By: NEBB Institute

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