If you’re an up-and-coming entrepreneur launching a business for the first time, it’s easy to feel overwhelmed by the sheer number of tasks you need to complete to get your business off the ground. From writing up a business plan, registering your business, or obtaining financing, the list of to-do list items can feel infinite. Luckily, some tasks on your startup checklist, such as securing funding, are easy to complete when you know what to look for in lenders.
Choosing a lender wisely will help you obtain the funding necessary to move your business model from the brainstorming phase to the execution phase, bringing you one step closer to making a profit.
Should you make the costly misstep of choosing a lender who moves at a snail’s pace or applies random charges without informing you, you may inadvertently prolong the startup process, as it will cost you more money to secure a business loan. On-the-other hand, if you choose an experienced lender who knows how to expedite the process and is transparent about the costs, your business can be up and running in no time.
Lenders harnessing the power of SaaS loan software
Saas loan software from providers like Loan Pro provides automation that improves the small business loan process. This software was designed to benefit both the lender and borrower by automating loan processing and improving access to communication and faster response times. The system keeps lenders and borrowers connected. That said, steer clear of small business loan providers who choose to overlook the benefits of SaaS loan software.
What to look for when shopping for the right small business lender
Accreditation
Cybercrimes and fraud are two of the most common crimes committed in the USA each year. Before sending any vital information or agreeing to any terms, research the lender. The best way to avoid falling for a fraudulent scheme and losing out on your hard-earned money is to check the accreditation as well as any BBB reviews for the lenders you are comparing.
The flexibility of the Lender
Some lenders are not very flexible when it comes to deciding the terms of loans. They have high expectations for the borrower, expecting them to have borderline perfect financials, and if the borrower doesn’t, they mistreat them. Not all businesses have an ideal credit history and large amounts of collateral, and they don’t deserve to be mistreated.
To prevent these less-than-ideal interactions, choose a small business lender that offers flexible terms and is willing to work with you to make the business loan terms work for you.
Identify Loans that Are Beneficial for Your Business
There are several different loans available for small businesses, so it is essential you know which one fits your business’s needs the best. Once you know what type of loan fits your business’s needs, make sure the lender you bank with offers that loan.
Standard small business loans:
- Business Cash Advance
- Invoice Financing
- Short-Term Business Loan
- Business Line of Credit
- Equipment Financing
Speed of Lending
Online lenders can approve loans and have the funds in your account in as little as 24 hours, whereas banks can take weeks, if not months, to approve a loan and send out a payment. If you’re in a hurry and need the money fast, then an online lender is the best option. Even if you’re not in a hurry, having to wait weeks or months for a response to your loan application is unacceptable. Online lenders are the better, faster choice.
Customer Service
One of the most critical qualities to look for in a lender is impeccable customer service. Your lender should make themselves available to you through various communication channels and respond promptly to all of your requests.
The bottom line
Don’t stumble into a questionable lender’s trap. Instead, protect your startup’s best interest by meticulously screening potential lenders.
