Business loans are the lifeblood of many small companies and entrepreneurs. Without them, managing revenue valleys and growing the company would be nearly impossible.
But business lenders aren't all the same. Certain qualities exist that define a lender with whom you can build a great business.
Let's explore these 4 qualities now.
1. They Take Time to Understand Your Unique Business
Your business is unlike any other. We don't have to tell you that. But despite this obvious truth it's easy to throw a stone and hit a lender that doesn't consider who you are as a borrower.
This can not only lead them to make bad assumptions. They'll also make hasty decisions regarding your application and account.
Understanding Your Industry
Often the best lender has some knowledge in your industry. They have a history of working with borrowers with similar businesses.
Because of it, they know the questions to ask to get you set up with the right solution.
Understanding Your Financial Situation
They can read between the lines of your financial statements. They see the potential in your business. With their added financial knowledge and expertise, they are better able to spot a good risk where other lenders might reject you.
Leave them. They just don't get it.
Meeting Your Needs
Because they ask the right questions, read between the lines and get to know your business, they can offer you solutions. These fit your specific business needs.
Small businesses and contractors don't often have the assets to back loans. A lender that gets you will understand this and have unsecured options you may qualify for.
Not paying your utilities and employees while you await payments on your accounts receivables isn't an option. A lender should understand this.
They have the options you need like:
Working capital loans
And because they're good at what they do, they can get it done fast so you don't wait for a decision.
2. They Believe in What You're Doing
This may seem totally unnecessary. Someone doesn't really have to believe in your business to lend. He or she just needs to look at your ability to repay the loan, right?
This may seem true on the surface. But a lender actually believing in you and rooting for your success can make all the difference in the lender-borrower relationship.
It impacts the kinds of products they recommend. This positivity infuses your interactions with the company.
When business lenders are on your side, you can accomplish more together.
3. They See You as a Strategic Partner
You want to work with business lenders who see you as a business partner, not just a loan number.
A partner invests in you and your business. They benefit when you succeed. If you're facing a challenge, they work with you to achieve the best outcome.
Business lenders who align their products and processes with the needs of the small business owner can help you grow and experience long-term success through the relationship.
A partner will use their lending expertise to help you succeed. They won't give you a loan or put you in a position where they know you can't pay it back.
4. They Have an Excellent Reputation
Simply having a name for yourself like Chase or Wells Fargo doesn't mean you have an excellent reputation. It may look impressive when a company has thousands of reviews and millions of customers.
But you know that it's the content of those reviews that matter. It's about the individual borrowers. How are they being treated by their business lenders?
There are several important aspects to a business lender's reputation. Let's take a look at some of the most important ones.
Business lenders shouldn't be fly by night companies that have just happened into lending. They need expert knowledge and training to make smart decisions both as business lenders and in their partnership with you.
It's great when companies have everything automated with online forms and tools. But sometimes you need to talk a person. A major part of an excellent reputation is how that lender works with people.
Are they available and responsive? Can they resolve challenges? Do they have systems in place to maintain a quality partnership with small business borrowers?
Absolutely nothing should ever be hidden in the lending process. All fees and interest should be completely straightforward and easy to understand.
The representatives should be willing to answer questions and walk you through any uncertainties.
This excellent reputation should include integrity. A trustworthy lender has nothing to hide. This comes through in your every interaction with them.
They say what they mean and keep their promises.
These are the kinds of business lenders you want to work with.
Finally, a reputable lender has a responsible underwriting team. They know how to review your applications and financial statements.
They do the math and understand how various loan options may impact your business. Sometimes this means saving a business from itself by not issuing a loan that could be detrimental in the long-run.
This kind of honesty in responsible lending is what you want in business lenders.
Lenders come in many shapes and sizes. But there are certain qualities that indicate that a lender is right for you.
They should understand your business. They should provide a variety of solutions that take into account your unique business needs. They should treat you as a partner and be rooting for your success.
They should have an excellent reputation.
Are you looking to grow your business? Do you need new equipment or a short-term loan while receivables come due?
It's time to explore your borrowing options. Work with a partner who works with you to get a decision fast and personalized for your business needs.
Get started with our quick online application process.