Tag: business loan consultant

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Business Advice

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

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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?

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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?

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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

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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
Business Advice Business Loans

Growing a Business as a Loan Consultant: What to Expect

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If you’re a loan consultant and want to build your own consultancy business, you have numerous opportunities. You just have to know how to navigate the industry.

The first step is to find a niche to specialize in. Next, start networking with other professionals in this area. This strategy will help you find clients who need your services. Advertise your services online by creating an online presence and promoting yourself on social media platforms.

Finally, getting a business loan will benefit you in the long term because it allows you to focus on other aspects of the company rather than worrying about finances all the time.

In this article, you’ll learn what to expect when growing a business as a loan consultant and the types of business financing.

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Financing Your Consultancy Business: 4 Things to Expect

  • Consider your financial situation first

Small business loan consultants always need to consider their financial situation before they start growing their business because the lack of funds leads to multiple roadblocks. Financing is crucial to growing any business; if you don’t assess the situation, it can prevent growth.

Understanding your finances will also assist you in making business decisions. Knowing what you can and should afford narrows your options to what your company needs to further its growth.

  • Double-check your expenditures and cash flow

With your financial situation, expenditures and cash flow are things you should understand to fully grasp where you stand as a consulting business. You have your payroll, marketing, supplies, and even travel expenses to consider. 

Leaving these unattended expenditures results in issues with your capital since some aspects of the business require more financing.

  • Know your credit score

Credit scores play an essential role in business loans. They determine your probability of getting a loan. 

The higher the credit score, the better your chances of landing a loan. Not knowing this wastes your time if you have a low credit score because the odds of receiving a loan are slim.

  • Get the right timing

Having the funds at the right time brings in more opportunities. If there’s a chance to expand the business, but you have no funds, you’ll have to wait. On the other hand, if there’s an opportunity to grow when you have the finances, you can immediately focus on that.

4 Types of Business Financing for Consulting Businesses

  • SBA loans

Small Business Administration (SBA) loans guarantee loans with member banks and other credit unions. They offer low-interest rates and some of the best loans available. To qualify, you’ll need a high credit score and collateral.

  • Cash advance

A cash advance is a kind of financing that revolves around your business’s cash flow. The requirements are less strict than other long-term financing options and are a great way to gain additional ROI on specific projects because you can get answers on your loan application within hours. Periodic payments will also be either weekly or daily.

  • Term loans

Term loans have a fixed interest rate during the specified period and will require you to pay monthly. Traditional banks will offer this loan, which comes with or without collateral.

  • Short-term loans

Short-term loans are for businesses that require financial support during a short gap. These loans are offered online and are payable within a year, but that depends on the lender. The process for this loan is fast, but the interest rate is high. 

Choosing the Best Type of Financing for Your Consulting Business

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Lending companies always look for the best candidates when reviewing each loan application. If you want to increase your chances of approval, here are four questions to consider.

  • What is your loan purpose? 

When you apply for a loan, you’ll be asked to provide information about your income and expenses. You must give details about the property or business you plan to use as collateral for the loan.

You’ll need proof of income, such as pay stubs, annual revenues, monthly cash flow, or tax returns showing recent earnings. By identifying your loan purpose before applying, you can get the best terms on your loan and avoid costly mistakes.

  • How is your credit history? 

If you know your consulting business’ credit history, you’ll be able to see what information is being reported about you and what kinds of loans might be available to you. Find out if there’s anything on your record that would disqualify you from getting approved. 

For example, if you’ve been late on payments in the past or have defaulted on other loans, it may be difficult or impossible for lenders to approve your application until those issues are resolved.

  • Can you repay your loan?

Your budget should be based on your income and expenses and include all the money coming in and going out. If your income is insufficient to cover your costs, you may need to consider other ways to pay off the loan. 

For example, if you have credit cards with high-interest rates that are close to being maxed out, you could transfer those balances onto a lower-interest card. Your revenue and cash flow numbers are essential to getting your needed financing. Your potential lenders need to see your consulting business’ financial ability to pay periodically. 

  • Do you need collateral?

Determining if you need collateral will lead you to pay extra fees to get the loan or rely on other factors such as your credit score and income level. 

Collaterals are important because they help lenders feel more comfortable making risky investments with money from investors who may not be able to pay back their loans if something goes wrong with their business or personal finances.

Raise Money for Your Business

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Finances are a constant factor that many businesses consider. It keeps the company alive enough for it to grow and expand. Knowing the types of financing available for consulting businesses is advantageous, providing insights that will improve decision-making for future ventures.

If you’re looking to get a business loan and fund your small business, JK Capital Finance is an online lending company that can assist you. We offer multiple services, from business loan applications and check rediscounting to quick approval and non-collateral loans. 

For more information, visit our website, and feel free to visit JK Capital’s official Facebook page today!