If you’re not a member of Corbel Partners and are either starting a new advice business, wanting to join a network, or considering leaving your existing network, there are so many options at your fingertips.
You might be thinking about:
- Your top priorities as an IFA, and how joining a new network might help you honour them
- How your clients might benefit from the perks a network might offer
- The costs involved with starting an advice business or leaving an old network to join a new one.
When it comes to the latter point – the costs – many IFAs become worried that migrating to a new network or starting a new firm under the umbrella of a network might simply be too expensive. To provide an apparent solution to this, we know that many networks offer new members a loan to cover these overheads.
While we appreciate the need for funding, at Corbel Partners we never offer new members a loan (and for good reason).
Keep reading to discover the costs often associated with starting a new advice business or moving networks as an existing firm, and why we have decided against a lending structure.
The costs involved in starting a new advice firm and moving networks as an existing business
If you’re starting from scratch
Starting a business from scratch has several associated costs – between taking exams and qualifying as an IFA, finding the right business premises, building a website, and building a client bank.
If you’re moving networks as an established firm
A network switcher might incur some costs because:
- There may be exit fees and other expenses involved with leaving your existing network
- Doing so could cause a brief interruption in income.
3 ways to self-fund a network move
Sometimes, margins are tight – this is the reality of running any business over many years. So, if your firm is in need of a capital injection in order to successfully move networks, there are ways to achieve this without taking a loan from the network you’re moving to.
1. Wait until you have the capital to spend
It’s important to plan a transition like moving networks far in advance. If you’re aware of any associated costs, it may be wise to build up the capital within your business before actioning your plans.
2. Take a business loan
Taking out a business loan independently of your network could help you cover any overheads involved in moving networks or setting up your business.
3. Look out for available grants
Although they can be hard to find, some grants are available to IFAs looking to expand their business.
Why we don’t lend money to IFAs joining our network
Some networks are prepared to lend money to new members, but we believe this is a bad idea for the following reason: loans bind you to the network for a set amount of time and create a potential conflict of interest.
Our number one priority is independence, and we believe that offering your business a large sum to start off with might complicate the relationship you have with us moving forward. If you wish to leave before the loan is repaid, for example, this could pose problems on both sides, and ultimately stifle your freedom as a business owner. Or, you might feel undue pressure while you’re repaying the loan, inhibiting your ability to grow your business in the way you desire.
However, that doesn’t mean we aren’t fully supportive of our advisers’ fiscal circumstances and goals. At Corbel Partners, we provide:
- Mentoring from David and Paul, the Directors and founders of our network
- A comprehensive adviser tool that incorporates cashflow modelling software, a client portal, fact-finding, document signing, and client communications, free of charge
- Charged-by-the-minute paraplanning, so you’ll never pay for what you don’t use
- Compliance and administrative support
- A cost-effective website template that can help you market your business.
We believe that offering advisers the best support we can to run their businesses cost-effectively, while allowing them to remain fully independent without being financially tied to us, is the best way to gain results for everyone.
We want all our members to cherish being a part of Corbel Partners, and if you don’t, we’d rather you’re able to autonomously find a better home for your business without being stuck with a loan to repay. What’s more, this means you’re free to run your firm exactly as you choose and to build up capital from day one.
Get in touch
Want to learn more about joining us? Email hello@corbelpartners.co.uk or call 01925 637891.
Please note
This article is for general information only and does not constitute advice.
The content in this article was correct on 22 August 2024.
