Should you raise financing yourself or with a broker?

Introduction

The difference isn't just time – it's the outcome.

Most entrepreneurs raising financing for the first time think the main goal is to "find a bank that says yes." In practice, the way you arrive at that yes determines the price of the financing, the amount, and even whether you get it at all.

In this article we compare both paths across 9 real-world criteria.

Comparison Table

1. Time to Offer

Going to banks yourself easily stretches into 1–3 months – every bank asks for its own documents, in its own format, on its own schedule. A broker does this work in parallel with all partners and usually receives the first offers within 1–5 days.

What it means in practice: if you need financing for a specific deal (order, property, equipment), a 2-month delay often means the opportunity simply disappears.

2. Financing Experience

Most entrepreneurs raise financing 1–3 times in their life. A broker has hundreds of deals behind them – you don't learn from your own mistakes, you use experience that's already been paid for.

3. Number of Offers

By yourself you usually get 1–2 offers – and you don't know if they're good or bad. A broker works with 5–10 financiers in parallel, and only when offers are on the table can you see which one is actually attractive.

> No comparison means no negotiating position. No negotiating position means no best price.

4. Probability of an Offer

Banks and non-bank lenders reject deals not because they're bad, but because they're prepared incorrectly or sent to the wrong financier. A broker knows who works with your industry, size and risk profile.

5. Access to Financiers

The average entrepreneur knows 2–3 banks. The Latvian market has 50+ active financiers – banks, leasing companies, factoring, alternative lenders, ALTUM, EU fund programs. Most of them don't advertise – you reach them only through a network.

6. Strategy

By yourself you usually act reactively – "I'll go to my bank, I'm already a client there." A broker first assesses the situation, prepares the deck, and only then approaches specific financiers in a specific order. That's a planned strategy, not hope.

7. Negotiating Power

If you have one offer, you have no negotiating position – you either accept or decline. With 5 offers, you can play financiers against each other and gain 0.5–2% better rate or softer terms.

8. Time Investment

The 100+ hours you'll spend on bank meetings, documents, negotiations and follow-ups are hours you're not investing in your business. Calculate what your hour is worth and you'll see the real cost of the DIY approach.

9. Risk of "Burning Bridges"

This is the most common mistake we see: the entrepreneur goes to 4–5 banks without a strategy, gets rejections, and then, even with a professional's help, those banks are no longer willing to talk. A rejection stays in the system.

Summary

You can raise financing yourself. But the question isn't "can you," it's "at what cost":

• How much time did it take?
• How many offers did you compare?
• How good were the terms you got?
• How many bridges did you burn along the way?

A broker's fee is usually 1–3% of the deal amount – and in most cases it pays off through better terms alone, not counting saved time and reduced risk.

If you're considering raising financing – contact us, and we'll assess for free which approach will be most beneficial in your situation.