Small businesses are by definition constrained with owners running all facets of the business, from serving customers, answering phones, managing employees while dealing with the financial management. We get it. We feel your pain.
As a business owner, making the right decisions about cash flow management and financial stewardship is often not easy. Whereas traditional banks and credit unions often cannot lend to small businesses due to a bad credit history or other circumstances that fall outside their lending criteria, United Capital Source specializes in providing business funding in unusual situations.
Too often, American small businesses fall prey to unscrupulous lenders who look for hard working business owners that are time poor and facing a credit crunch. We wanted to share some advice on selecting a small business loan provider and how to avoid lending traps:
1. Look for small business lenders who are accredited with the Better Business Bureau. The BBB sets standards for ethical business behavior and monitors compliance. United Capital Source is proud to be a BBB Accredited Business with an A+ rating which requires the business to have no complaints filed with the BBB.
2. Check for reviews on 3rd parties sites for business funding lenders. You’re familiar with Tripadvisor right? Similarly, business funding companies should also provide links on their website to validate customers experience . As of this article, United Capital Source is proud of our 9.5 rating on TrustPiliot and customer testimonials.
3. Speak to a person before providing ALL financial data. Be careful. Avoid blindly emailing or faxing your business financial statements to a lender without first speaking directly to the company. Ask for third party references, case studies and testimonials as well as how long they have worked at the company.
4. Try to deal with people who have a company email, not a free email services such as Gmail, MSN, AOL or a Yahoo email address.
5. Ensure the company’s Facebook, Twitter, Google Plus and social media presence are active and the company has a physical street address listed on their website. Look for staff photos as well. Social media can provide valuable insight for small businesses when you are selecting a business funding partner. Be sure to view their activity on social media to see how engaged this company is with their customers and the local business community.
6. Never pay an upfront application fee, ever! There is no requirement to pay any upfront sign on or consultation fee to a lender to meet with you or speak with over the telephone. Where possible, it is a good idea to meet face to face with the lending representative in person.
7. Never pay a lender money upfront to process a loan. While application loan fees are often charged by brokers for residential mortgages upon settlement, there is no requirement to pay upfront fees to a lender to originate a small business loan.
8. Make sure the person reviewing your small business loan goes over monthly payments and cashflow with you. This is very important as a good small business funding lender will want to understand your business cash flow and work with you to model out the repayment schedule.
United Capital Source is proud to have long standing clients that enjoy this benefit of our customer focused finance managers and we’re always looking to add more business owners to our list of satisfied clients. Contact us today for a FREE consultation!