Brokerplan Franchise

[Zak Cee]

Hi All,

Been looking to buy into a Brokerplan franchise for the past 2 months. Finance lending and franchising is not something I am familiar with. So was hoping to get some feedback and advice from others on here whether it is a franchise worth investing in and whether anyone has experience with the franchise.

I am fully aware that it's a crowded market and the largest challenge would be to acquire new clients etc. however we currently have a healthy portfolio of local businesses that we manage online marketing campaigns for that would be our initial target market, and with our experience in marketing, we would able to push out online campaigns to get the new leads.

The question Is more around someone who has either dealt with them in the past or has experience with Brokerplan or the commercial finance industry.

I am keen to know how good of a franchise are they?
Can you get a good return in this industry?
Do they have a good support network etc.

There is only the initial investment which I am happy to invest and the rest is commission per transaction or sale only so no monthly royalties etc.

Your help is appreciated in advance. Thanks!

 

[Gordon - Commercial Finance]

I don’t know a lot about Brokerplan but I do know a bit about commercial finance.

Seems an odd route to pursue if by your own addition you don’t know anything about the market place. What brought you to this point?

I would be wary of anything with an initial investment requirement. The barriers to entry in being a commercial debt broker are low. It can be done very cheaply, perhaps even free (it was free for me...) so don’t commit to an initial investment model unless you’re getting something tangible for that money.

 

[Ian J]

Another who has never heard of them (White Rose Finance Ltd) but having had a quick look over their site one of the supposed benefits of taking a Brokerplan franchise is:-

Supported by an experienced underwriting team, you identify, qualify and electronically submit cases – we do the rest for you.

That sentence makes me feel a bit uneasy as it seems to imply that far from running your own franchise you are little more than a lead generator for them as it seems that cases are submitted to the finance companies in their name so you have no relationship with the finance companies.

The page also lists the logos of the companies that they deal with as if it's something unique to them but the finance companies on that page that I know will happily deal with anyone that provides them with a lead

Supported by all the High Street Banks, Funding Circle Business Champions & Strategic Partners with the Challengers

I wonder what that means. Probably nothing more than they accept leads from them. Well they also accept leads from me so perhaps I'd better change my advertising

 

[Zak Cee]

I don’t know a lot about Brokerplan but I do know a bit about commercial finance.

Seems an odd route to pursue if by your own addition you don’t know anything about the market place. What brought you to this point?

I would be wary of anything with an initial investment requirement. The barriers to entry in being a commercial debt broker are low. It can be done very cheaply, perhaps even free (it was free for me...) so don’t commit to an initial investment model unless you’re getting something tangible for that money.

Hi Gordon,

Thank you for the feedback,

What I meant with regards to not knowing about the marketplace was more about the ins and outs of finance, borrowing, rates and potential as a revenue generator etc but in terms of understanding general business, growth and helping businesses, the sales process etc I totally understand that part.

Well had a bucket list of ideas and along with a few others I will be exploring, commercial finance made it that list. I reviewed my current skillsets and strengths, current clients and potential opportunities when we finally come out of Covid 19.

I know people will be wanting finance whether it be startups or existing businesses wanting growth. It also goes hand in hand with the online marketing business I run, so they would be borrowing to grow by using some of that money to generate more revenue along with improving their business. So in a roundabout some revenue will come back to my online marketing business.

I will take a look at other free commercial finance routes as you have kindly mentioned.

Thanks

 

[Zak Cee]

Another who has never heard of them (White Rose Finance Ltd) but having had a quick look over their site one of the supposed benefits of taking a Brokerplan franchise is:-

Supported by an experienced underwriting team, you identify, qualify and electronically submit cases – we do the rest for you.

That sentence makes me feel a bit uneasy as it seems to imply that far from running your own franchise you are little more than a lead generator for them as it seems that cases are submitted to the finance companies in their name so you have no relationship with the finance companies.

The page also lists the logos of the companies that they deal with as if it's something unique to them but the finance companies on that page that I know will happily deal with anyone that provides them with a lead

Supported by all the High Street Banks, Funding Circle Business Champions & Strategic Partners with the Challengers

I wonder what that means. Probably nothing more than they accept leads from them. Well they also accept leads from me so perhaps I'd better change my advertising

Interesting observations Ian, will take a look

Thank you for the feedback

 

[Gordon - Commercial Finance]

Supported by all the High Street Banks, Funding Circle Business Champions & Strategic Partners with the Challengers

I wonder what that means. Probably nothing more than they accept leads from them

I’m also an FC Business Champion. It’s their top 100 introducers or something like that. We get slightly preferential fee rates.

I didn’t pay anything for that privilege either...

The more I read about it the more I would 100% steer clear of brokerplan. Sounds a very restrictive model.

Get a job with a big brokerage and learn the ropes. Or network hard until you find a mid size broker who is recruiting.

 

[Ian J]

I know people will be wanting finance whether it be startups or existing businesses wanting growth.

Companies will be desperate for finance when this is all over but my guess is that a huge percentage of the applications will be declined as all of the finance companies will be very very fussy over whom they lend money to as there will be a huge number of basket cases desperate to stave off the inevitable

 

[Zak Cee]

Companies will be desperate for finance when this is all over but my guess is that a huge percentage of the applications will be declined as all of the finance companies will be very very fussy over whom they lend money to as there will be a huge number of basket cases desperate to stave off the inevitable

Thats also a very good point.

Thank you

 

[fisicx]

Supported by an experienced underwriting team, you identify, qualify and electronically submit cases – we do the rest for you.

My wife is an underwriter and she won't go anywhere near Brokerplan. Their underwriters are the from the bottom of the barrel.

Getting finance right now it very difficult unless you manufacture or supply key products.

 

[Mark T Jones]

In common with the above brokers; I'm not familiar with Brokerplan.

On the plus side they don't make silly promises or claims on their website. Less good is that they don't seem to recognise their own strengths (reading between the lines, their expertise is in property funding) but pretend that they can handle all types of funding - which is nonsense.

There are currently about 3 thousand generic 'finance brokers' racing to the bottom trying to offer products they don't understand - it really is very hard to differentiate yourself.

The market will be seriously recifying itself over the next 2 years, and those who don't know their place will disappear - whether they are independent or under a franchise.

To condense that - franchise or otherwise I wouldn't be entering the finance market without a very clear point of definition.

 

[Zak Cee]

Thank you all for your positive comments and personal insights.

Certainly has given me food for thought and will explore further before taking the dive.

 

[Mark T Jones]

I know people will be wanting finance whether it be startups or existing businesses wanting growth. It also goes hand in hand with the online marketing business I run, so they would be borrowing to grow by using some of that money to generate more revenue along with improving their business. So in a roundabout some revenue will come back to my online marketing business.

Here is a very good test of your franchisor - run this by them and see how they respond.

If they nod and agree, you want to run a mile as they clearly aren't interested in helping you.

If they challenge your expectations then there might be a conversation worth having.