Categories
Business Advice

Real Estate Brokers vs Loan Consultants: What Do They Do?

For starting business owners, navigating the overwhelming world of finance can be challenging. As such, you should understand the roles of professionals who can assist you in achieving your business’ financial goals.

To help grow your business, you’ll most likely lean on taking out a loan to fund the operational expenses you need. However, it’s not that easy for small and medium enterprises (SMEs). They face another obstacle in their plan: securing business financing in the Philippines. JK Capital understands this obstacle and aims to assist SMEs in achieving their financial goals.

Small business loans in the Philippines experienced a 3.2% increase in 2022, reaching P454.31 billion compared to P440.34 billion in 2021. If you’re looking to secure the necessary financing for your business, it’s understandable to be curious about how you can participate in this growth.

Let the professionals like JK Capital’s loan consultants bridge the gap and help you secure the necessary financing for your business. In this article, discover the difference between a loan consultant and a real estate broker and determine which of the two you need more. You’ll better understand how both professionals can help you achieve your business financing goals.

What is a Loan Consultant?

Close-up,Hand,Asia,People,Woman,Fill,Rent,Loan,Form,Write

A loan consultant, such as JK Capital’s experts, is a financial professional assisting individuals in securing a business loan. So, what does a loan consultant do? They guide you through the loan application process, provide expert advice, and help you navigate the complexities of the lending industry. Here are some key responsibilities of loan consultants:

  • Extensive loan knowledge – Loan consultants, including those at JK Capital, possess in-depth knowledge of various loan products, including business loans and mortgages.
  • Financial assessment – They assess your financial situation, considering factors such as creditworthiness, income, and desired loan amount, to determine your loan needs.
  • Personalized recommendations – Based on their assessment, loan consultants provide customized recommendations and suggest suitable loan options that align with your specific circumstances and financial goals.
  • Intermediary role – Loan consultants act as intermediaries between clients and lending institutions, leveraging their relationships to negotiate favorable loan terms on your behalf.
  • Terms negotiations – They work diligently to secure competitive interest rates and favorable repayment terms while ensuring compliance with lending requirements. Their goal is to maximize the benefits of the loan for you.

By utilizing their expertise and connections, loan consultants at JK Capital assist you in navigating the lending industry, simplifying the loan application process, and significantly increasing your chances of securing the best loan option.

JK Capital provides SME financing through non-collateralized loans with speedy approvals to suit your financial demands. With an expedited loan application procedure, you can quickly get the money you need.

Now that you clearly understand the responsibilities of loan consultants, explore the world of real estate brokers and learn how they contribute to facilitating successful transactions.

What is a Real Estate Broker?

Business,Asian,Woman,Working,With,House,Model,Real,Estate,Agent

A real estate broker is a licensed professional who serves as an intermediary in the property market, connecting buyers and sellers. They facilitate successful property transactions by matching individuals or businesses with suitable properties and negotiating deals on their behalf. 

With their in-depth knowledge of the local market, property values, and legal requirements, real estate brokers are invaluable resources. They provide support to small businesses by:

  • Property identification – Helping businesses find properties that meet their needs, budget, and location preferences.
  • Market research – Conducting thorough research on property values, trends, and market conditions.
  • Property valuation – Assessing properties’ fair market value to ensure businesses make informed investment decisions.
  • Property viewings – Arranging and accompanying businesses on property visits, providing insights into suitability and potential.
  • Negotiation – Advocating for businesses during negotiations to secure favorable terms and conditions.
  • Transaction management – Assisting with documentation, legal compliance, and coordination with other professionals involved.

Loan Consultant vs. Real Estate Brokers: Key Differences 

Key Differences

 

Loan Consultants 

 

Real Estate Brokers

 

Scope of work and focus

 

Secure loans for individuals and businesses

 

Facilitate property transactions, such as buying, selling, or renting properties

 

Licensing and regulations

 

Comply with industry-specific regulations and hold licenses or certifications

 

Obtain licenses or certifications to meet legal and ethical standards in the real estate industry

 

Collaborative relationship 

 

Work closely with clients, serving as intermediaries between clients and lending institutions

 

Work closely with clients as intermediaries between buyers/sellers or landlords/tenants

 

Loan Process

 

Guide clients through the loan application process, providing personalized financial guidance

 

Primarily focus on property transactions, providing information about financing options

 

Financing Expertise

 

Have in-depth knowledge of loan products and recommend suitable options based on the client’s needs and goals

 

Specialize in property markets, values, and market conditions while having a general understanding of financing options

 

Loan consultants

Loan consultants, such as those at JK Capital, are financial experts who offer guidance and tailored solutions throughout the loan process. They provide expert advice and analyze your financial situation to recommend suitable options.

Complying with licensing and regulatory requirements, loan consultants act as intermediaries between you and lenders, fostering collaborative relationships. Their expertise in financing and industry dynamics ensures they can secure competitive loan terms and advocate for your best interests. With personalized financial guidance, they help you achieve your goals.

Real estate brokers

Real estate brokers focus on facilitating property transactions, such as buying, selling, or renting properties. They collaborate with clients as intermediaries between buyers and sellers or landlords and tenants.

Real estate brokers possess in-depth knowledge of the real estate market and its dynamics, obtaining licenses or certifications for legal compliance. While they may provide information about financing options, their expertise lies more in property markets, values, and market conditions.

Understand the Vital Roles in Property Transactions

Asian,Business,People,Discussing,On,Performance,Revenue,In,Meeting.,Businessman

Real estate brokers and loan consultants are vital in property transactions and financing. The former connects buyers and sellers, while the latter secure loans and provides personalized financial guidance. You must understand the differences between these professionals to navigate the complexities of property endeavors.

Are you ready to take the next step in your property journey? JK Capital is a financial lending company in the Philippines specializing in various business loans, streamlined loan application processes, and other exceptional services.

Contact us today or visit our Facebook page for more information. Trust JK Capital to be your reliable partner on the path to success in real estate and financing!

Categories
Small Business

6 Reasons Why Small Businesses Fail and How to Prevent It

According to the Asian Development Bank, there were around 1,076,000 micro, small, and medium enterprises (MSMEs) in the Philippines in 2021. It’s no surprise, given that 81% of Filipinos feel encouraged to start their own business. 

However, the reality is that one in five small businesses (20%) fails within their first year of opening. This statistic highlights that, while starting a business may feel like a dream come true for many, it doesn’t always guarantee long-term success. 

There are plenty of reasons why small businesses fail, from lacking market research to launching products too similar to existing ones. 

While business financing from companies such as JK Capital can help you avoid business closures, you should still understand the underlying causes of failure. 

6 Reasons Why Small Businesses Fail 

Asian,Woman,Think,Hard,Serious,Working,Laptop,Computer,At,Home

Business failure is common, which is why financial lending companies like JK Capital started offering help to organizations with the following underlying issues. 

1. Operating without proper market research and planning

Many SMEs fail in the first year because they launch products and services consumers don’t actually need. It highlights the importance of conducting thorough market research. Without a solid business plan to fulfill these needs, businesses become vulnerable to mismanagement, which could have fatal consequences. 

Additionally, it becomes much harder to secure a business loan since lenders may not feel confident they’ll get their money back.

2. Lacking capital and financial management

Graph,Chart,Going,Down,Bearish,Sign,On,Wooden,Cube,With

CB Insights found that 38% of startups fail because of insufficient cash flow. Businesses need adequate funding to cover expenses such as facilities, equipment, and, most importantly, employee salaries. If a company isn’t selling enough, it becomes highly susceptible to closure. 

3. Selling undifferentiated products 

Based on Statista’s data, 20% of startups worldwide failed because they were out-competed. It highlights the importance of having an enticing and unique selling proposition (USP) that resonates with your ideal audience. Products that lack differentiation from competitors or fail to offer a competitive advantage have a low chance of succeeding in the market.

4. Producing unengaging marketing 

A common mistake among business leaders is neglecting to invest enough resources in marketing their products or services. A “Build it, and they will come” approach is ineffective. 

The thing is that roughly 72.5% of Filipinos are on social media, meaning they encounter endless content from everyone else on the platform, including that from competitors. A lack of marketing efforts will further obscure businesses and hinder their visibility. 

5. Not adapting to market changes

Market demands constantly change, driven by new technologies and shifting consumer trends. Companies that fail to adapt and provide innovative and relevant products and services set themselves up for quick extinction. 

6. Poor leadership

Poor leadership can have a detrimental impact on various aspects, from project management to employee morale. Inexperienced leaders can mismanage companies, make incorrect investment decisions, and waste valuable resources, leading to the debilitation of the business. 

While it benefits you to understand why small businesses fail, it often isn’t enough. How you use this information to form strategies and take the appropriate action matters even more. 

How to Prevent Small Business Failure 

A,Group,Of,Young,Asian,Businessmen,Talking,And,Planning,Work

Internal struggles aren’t always fatal to your business, nor will they ever go away. If you’re facing cash flow issues, contact JK Capital to learn more about our business loan options to fuel your operations. The following strategies can help you overcome these challenges and protect your small business from failure.  

1. Conduct thorough market research and planning

A business plan is nonnegotiable if you want your company to succeed. It plots where you want to take the company and what you aim to achieve, as well as provides details about how you’ll structure your organization and manage finances—all key details for corporate longevity. 

2. Ensure sufficient capital and effective financial management

There are several options available to improve your small business’s cash flow. Effective financial management practices include limiting your spending to what’s necessary and ensuring customers pay on time by resolving invoices quickly or clarifying payment terms.  

Alternatively, exploring SME financing options such as bank loans can provide capital for day-to-day operations, employee wages, or equipment investments. Fortunately, accessing business financing in the Philippines is easy since you can quickly apply for business loans online. 

3. Stay adaptable to changing market trends

What works today may not work tomorrow. You should stay updated on the latest trends relevant to your business and customers. Stay connected by following your industry’s publications, blogs, and thought leaders to ensure you’re well-informed. 

It would also help encourage creativity and flexibility within your organization to keep your operations nimble and products and services fresh. 

4. Invest in customer research 

Who is your ideal customer? What are their likes and dislikes? The better acquainted you are with your customers, the better you’ll market to them. It can mean conducting surveys, improving feedback forms, and even interviewing past customers to see how you can better serve them. 

5. Hire the right people

A bad hire can affect your company’s performance and culture, in some cases. You must review every potential candidate even more thoroughly. Look beyond their resumes to assess their long-term value and compatibility with your existing team. 

While these suggestions aren’t exhaustive, they’re excellent starting points to help you form your own strategies for success.

Set Your Business Up for Success 

Professional,Young,Asian,Business,Man,Using,Computer,Laptop,And,Talking

Although there are plenty of reasons why small businesses may fail, it isn’t to say that success is out of reach. Establishing a clear business plan, hiring the right people, and managing your finances wisely are all actions to help ensure your small business doesn’t close its doors soon. 

Since capital and a consistent cash flow are fundamental to any business, it’s worth considering applying for SME Loans in the Philippines from JK Capital. Contact us to learn about our business loan options, loan application process, and other services. You can also follow our Facebook page for more information on how to set your business up for success today!