When you go to a restaurant, what if you are given a menu that has one appetizer on it (calamari), one entrée(bacon hamburger), one dessert (vanilla ice cream), and one beverage (diet root beer)? You probably wouldnot want to eat there because you have very few choices.
If you do not know your options, you have none. You may face the same lack of choices if you go directly to a lender.
A prime duty (obligation) of a consultant is to find the product (solution) that matches the needs of the unique business owner. A consultant knows the general types of funding sources that would have an interest in a project and, in many cases, will immediately know of specific investment house most likely to finance/fund the project. The consultant also knows how to present the information on the prospective client in a manner that will provide the best opportunity to get the most favorable result.
Consultants are, by definition, advisers, strategists, and advocates for the client, not just facilitators. They will help the client decide what type of financing or combination of financing vehicles will be most advantageous for the client. A consultant will assist in preparing an in-depth review and/or a financial package and getting it ready for a prospective investor to review. A consultant fits the product to the unique needs of the business owner. The consultant remains available to advise the client throughout the process of securing accounting/audit services, appraisals, business consultants or any other professionals who are needed to complete a project because they may affect the financing parameters.
A client may save far more time, hassles, and money in rates, terms and fees on a project than it will cost in broker/consulting fees.
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