Locating the Right
WHEN YOU BUY A HOUSE it makes sense to apply for a mortgage through an intermediary, namely a real estate agent, rather than directly with a bank or other lender. Real estate agents know which banks offer the best terms for a specific type of dwelling and can negotiate the entire transaction without your participation. Similarly, working through a financial intermediary for raising business capital makes sense.
Granted, raising capital for a business isn’t quite as simple as getting a residential mortgage, but almost. When raising capital for a small business, management ability and personal relationships count almost as much as adequate collateral. That makes it difficult to delegate the entire process to an agent, as with a mortgage. At some point, borrower and lender must meet and get to know each other.
A competent financial advisor should be able to source the best combination of loans and equity capital for you. An advisor can also structure the most beneficial deal with a single lender or with a lead lender if more than one is involved. Regardless of the amount of capital you need, a professional advisor nearly always makes the job easier and faster, and arranges better terms than you could do on your own.
Conversely, you may not need professional advice if any of the following four conditions exist, although a professional advisor can still be very helpful: