Businesses need capital to run. While Fortune 500 companies have no problem generating capital, the same cannot be said for small businesses. This is where quick business loans come in. More often than not, small businesses need to loan money in order to run and finance their business.
The process of applying for a loan can be tiresome. But with the right business loan broker, you’ll be able to receive the money you need in no time. So how can you determine the right loan broker for you?
Here are four factors that could help you determine which loan broker is the best for your business.
1. Types of Financing Offered
A good loan broker presents you with loan options you can choose from. They should also explain and advise you on which loan works the best for your current financial situation. However, loan brokers should not pressure you to choose a particular type of loan. At the end of the day, it’s your business, your decision.
2. Amount of Money They Can Finance
Businesses borrow money to finance their business projects. If a lender is only willing to finance a portion of your needed capital, then it’s better to pick another lender. You will find that different lends are going top tell you different loan amounts. It’s best to shop around and look for the best offer.
As you speak with potential lenders, you can ask to see if they have a portfolio of previous deals. This way, you’ll have a better idea of how the lender addressed previous loan applications. You can also compare if there are any previous deals that are similar to your situation.
3. Upfront Costs
Lenders, brokers, and loan officers should never require payment upfront. If a potential broker asks you for payment to keep the application going, you should consider choosing another broker. In most cases, you shouldn’t have to pay for funding if there’s no guarantee that your application gets approved. A good lender will only ask you to pay if you’ve gone through underwriting and final approval.
4. Relationship with Current and Previous Clients
Keep in mind that reputable lenders have a good relationship with their clients. It’s also important to be wary about how open potential lenders are with basic information. Do they have an address? Can you reach out to them immediately? Are they open about previous client experiences? If your lender isn’t willing to share this information, then you might want to look for another potential lender. If a lender was difficult to work with before, chances are they will also be difficult to work with now.
If you think a certain brokerage seems sketchy, contact the Better Business Bureau in your state. It’s better to be safe than sorry.
Finding a reliable loan broker can be challenging. There are times when you don’t know what to ask or where to look. SMB Compass works with small businesses like yours to find the best quick business loan for your business. Don’t hesitate to give us a call at (646) 569-9496 or email us at firstname.lastname@example.org.