The finance broking industry is one where economies of scale mean finance groups are at a significant advantage compared to individual brokers. The main reason is because of volume. Many lending institutions require a monthly loan volume for a broker to obtain their accreditation with them and then maintain it. And because many individual brokers don’t meet these loan volumes, they don’t get to put a whole range of high-quality, reputable institutions on their lending panel in the first place.
For a bank that does accredit an individual broker and make it on to their panel, the small amount of business they put through that one bank relative to the significant amount a finance group has the ability to put through means that they don’t get access to the most attractive terms and conditions.
By using a finance group to access to a wider range of funding options than by using an individual broker or by not using a broker at all, a consumer gives themselves more opportunities to secure a loan. Plus, there is a much greater likelihood that they’ll save money in the long term through obtaining more favourable loan conditions.
Other advantages to joining a group include compliance support, proven systems, developed technology, support of a larger group of experienced brokers, training, Unique selling points, branding and a range of other important Key points of Difference can make the difference between failing or succeeding as a finance broker.